II. "So what is Boros?"
It's the ability to trade any type of yield - whether from DeFi, CeFi, or even TradFi markets such as LIBOR or mortgage rates.
To start, Boros will focus on the largest source of yield in the entire crypto market - funding rates.
It's the ability to trade any type of yield - whether from DeFi, CeFi, or even TradFi markets such as LIBOR or mortgage rates.
To start, Boros will focus on the largest source of yield in the entire crypto market - funding rates.
III. "Hmm... Just like @ethena_labs?"
While Ethena has successfully integrated funding rates into DeFi through $USDe and generates high APY (25%), they still face limitations as $sUSDe's APY shows steep volatility (due to the high volatility of funding rates).
While Ethena has successfully integrated funding rates into DeFi through $USDe and generates high APY (25%), they still face limitations as $sUSDe's APY shows steep volatility (due to the high volatility of funding rates).
IV. @ethena_labs will address these concerns over time through collateralizing BlackRock's BUIDL fund (U.S. Treasury-backed assets) based UStb, diversifying collateral assets, and maintaining sufficient reserves. As evidence, $sUSDe's APY rarely fell below 10% over the past year. x.com
V. I believe DeFi works to either completely blur the boundaries with TradFi or establish itself as a viable alternative.
... and minimizing APY rate volatility should be considered a crucial challenge to address, as it increases predictability in asset management.
... and minimizing APY rate volatility should be considered a crucial challenge to address, as it increases predictability in asset management.
VI. Here, Boros by @pendle_fi tokenizes funding rates, allowing you to hedge positions against them or conduct margin trading.
VII. On a daily basis, there's $150B of open interest in the perp markets, paying or earning funding every second.
$200B of transactions are being exchanged every day, processing 10x more volume than the spot market.
The amount of yield here has the potential to dwarf V2's current spot market.
$200B of transactions are being exchanged every day, processing 10x more volume than the spot market.
The amount of yield here has the potential to dwarf V2's current spot market.
VIII. "In theory, can @ethena_labs use Boros?"
Yes - with Boros, @ethena_labs will gain absolute control and predictability over its funding yield, enabling them to lock in a fixed funding rate and ensure stability at scale. x.com
Yes - with Boros, @ethena_labs will gain absolute control and predictability over its funding yield, enabling them to lock in a fixed funding rate and ensure stability at scale. x.com
IX. I guess you remember how $TRUMP launched on perp DEXs?
"I do. We were paying up to ~20,000% in funding just to go long..."
Such high rates quickly erode profits.
Boros creates a new solution by allowing traders to hedge their floating funding rate payments, converting them into fixed payments instead.
"I do. We were paying up to ~20,000% in funding just to go long..."
Such high rates quickly erode profits.
Boros creates a new solution by allowing traders to hedge their floating funding rate payments, converting them into fixed payments instead.
X. Memecoins or stables, degens or whales, individuals or institutions.
It does not matter.
Job's not done.
Pendle.
It does not matter.
Job's not done.
Pendle.
Last but certainly not least, I recommend that you follow these chads:
@tn_pendle @Rightsideonly @splinter0n @ViNc2453 @0xDefiLeo @leptokurtic_ @the_smart_ape @chutoro_au @0xCheeezzyyyy @_whalebird @PendleIntern @hzl123331 @crypto_linn @kevin0x0 @DDangleDan @0xlenn @kenodnb x.com
@tn_pendle @Rightsideonly @splinter0n @ViNc2453 @0xDefiLeo @leptokurtic_ @the_smart_ape @chutoro_au @0xCheeezzyyyy @_whalebird @PendleIntern @hzl123331 @crypto_linn @kevin0x0 @DDangleDan @0xlenn @kenodnb x.com
I hope you've found this thread helpful.
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