new defi primitive from @boros_fi: trading funding rates
It's built by the @pendle_fi team, and is the first on-chain venue for trading funding rates natively.
An in-depth breakdown on one of defi's most overlooked markets ๐งต๐๐ป
1) Funding rates are what perp traders pay to long/short. If something is heavily longed, longers must pay postive funding to shorters.
Often these funding rates are way out of sync. By using boros, you can bet on them reverting back to mean
2) Think too many longers (high funding)? Short the funding rate
Think too many shorters (low funding)? Long the funding rate
traders can speculate on funding rate movements OR hedge their existing long/shorts' current funding rates
3) despite only offering BTC, ETH and USDT funding perp markets atm, boros already reached $2.83B in trading volume and $1.05m in annualized fees since august, with plans to expand to new tokens (HYPE, SOL)
ok, but how do you trade on boros?
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