Boros is a new platform on Arbitrum that allows direct trading of the funding rates of Bitcoin and Ethereum perpetual contracts.
The platform launched by Pendle uses 'Yield Units' so that users can predict or hedge against funding rate fluctuations on exchanges like Binance, with limited opening limits and leverage.
MAIN CONTENT
Boros allows direct funding rate trading for BTC and ETH perpetual contracts on Arbitrum.
The platform uses Yield Units representing actual profits on the underlying unit that has not yet matured.
Opening limit of 10 million USD, leverage of 1.2x, prioritizing risk management before expansion.
What is Boros and how does it operate on the Arbitrum platform?
Boros is a platform developed by Pendle on Arbitrum, allowing trading of funding rates for Bitcoin and Ethereum perpetual contracts. Users can buy and sell 'Yield Units' - units representing actual profits on each unit of the underlying asset before expiration.
This provides participants the opportunity to predict fluctuations in the funding rate or hedge risks when trading derivatives on exchanges like Binance. 'Yield Units' operate similarly to yield tokens previously developed by Pendle, providing flexibility in DeFi.
In this way, Boros contributes to expanding the DeFi ecosystem on Arbitrum while creating a bridge for derivative traders with the increasingly vibrant cryptocurrency market.
What are the limits and initial development strategies of Boros?
In the early stage, Boros limits the maximum open volume to 10 million USD for each market along with a leverage of 1.2x, in order to control risk and ensure system stability.
The development team prioritizes risk management and system validation before expanding into assets such as SOL, BNB and integrating more exchanges like Hyperliquid, Bybit.
Instead of rapid development, Boros focuses on building a solid foundation while minimizing service disruption risks and user risks, thereby strengthening long-term community trust.
What are the incentives to attract liquidity on Boros?
Boros establishes Boros Vault so that liquidity providers can contribute capital and receive commissions, PENDLE Token rewards, along with yields calculated based on the positive APR differential.
This is the main motivation for attracting initial liquidity to the protocol, stimulating trading volume and expanding the ecosystem.
PENDLE Tokens are distributed based on order volume and executed trading value, along with an introduction and refund program to increase attractiveness for investors.
Boros aims to balance market expansion and system preservation, focusing on risk management and stable user experience.
Quote from the Boros development report, August 2023
What types of assets and exchanges will Boros support in the future?
In addition to Bitcoin and Ethereum, Boros plans to increase additional assets such as Solana and Binance Coin, expanding the funding rate trading range.
At the same time, Boros will integrate more reputable exchanges like Hyperliquid and Bybit to enhance liquidity and diversify options for users.
The expansion process will be carried out gradually to ensure stable system operation and minimize related technical and financial risks.
How are the incentive programs and PENDLE Token benefits on Boros?
Liquidity providers at Boros Vault can earn commissions, PENDLE Tokens, and positive yields from the APR differential, creating long-term incentives to participate in the protocol.
PENDLE Tokens will be distributed based on trading volume and order value, promoting liquidity while ensuring fairness in reward distribution.
In addition, the introduction and refund program will contribute to increasing new users and retaining current investors, helping the protocol develop sustainably.
Frequently Asked Questions
What is Boros and what role does it play in the cryptocurrency market?
Boros is a funding rate trading platform for BTC and ETH perpetual contracts on Arbitrum, supporting users to predict and hedge against funding rate volatility.
How do Yield Units work on Boros?
Yield Units are units representing actual profits on each unit of the underlying asset that has not yet expired, helping investors trade and manage positions flexibly.
What are the opening limits and leverage when launched?
Boros limits the open volume to 10 million USD per market and a maximum leverage of 1.2x, to control risk and enhance user safety.
What additional assets and exchanges will Boros support?
The platform plans to expand to SOL, BNB and integrate exchanges like Hyperliquid, Bybit, to diversify trading options.
How are PENDLE Tokens used and distributed on Boros?
PENDLE Tokens are rewards for liquidity providers and traders, distributed based on trading volume and value on the platform.
Source: https://tintucbitcoin.com/pendle-ra-mat-nen-tang-boros-moi/
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