What to Know:
- Pendle’s total value locked (TVL) has reached a record $8.27 billion, with its native token PENDLE surging 45% to $5.6 in the past week.
- The protocol’s yield-trading platform, Boros, allows traders to go long or short on funding rates, attracting notable deposits and activity since launch.
- Pendle has outperformed the larger cryptocurrency market, with PENDLE significantly exceeding the CoinDesk 20 (CD20) index, which rose 13.15% over the same timeframe.
Pendle’s TVL has skyrocketed to a record $8.27 billion, as its native token PENDLE gained 45% to reach $5.6 following the introduction of its new yield-trading platform.
With average Bitcoin funding rates around 10% annualized this week and open interest around $80 billion (based on Dune data), over $8 billion shifts hands annually between long and short positions.
Boros Functionality
Boros transforms those yields into tradable on-chain assets termed Yield Units (YUs), enabling traders to speculate on the rates.
This platform supports various advanced strategies, including hedging floating funding payments against fixed rates and capitalizing on high yields during volatile periods.
In its inaugural days, Boros garnered over 283 WETH (approximately $1.1 million) and 6.4 WBTC (about $750,000) in its vaults. According to data from TheTie, activities on Pendle’s Arbitrum deployment surged alongside the launch, with active addresses reaching 1,428, significantly above the monthly average.
While Boros currently accommodates BTC and ETH funding rates, plans to extend its offerings to other floating yields such as staking rewards and tokenized Treasury bills are in place.
Pendle’s impressive performance and TVL also benefited from its integration with the Hyperliquid ecosystem, where Kinetiq’s kHYPE, the largest liquid staking token on Hyperliquid’s HyperEVM, has attracted $221 million in total value locked since the integration.
