Boros Adds Bitcoin (BTC) and Ether (ETH) Spread Markets

Pendle’s Boros has added Bitcoin (BTC) and Ether (ETH) markets that let traders take positions on the difference between perpetual-futures funding rates on Hyperliquid and Gate. Each market turns the two venues’ rates into one floating rate, giving traders exposure to the gap between them.

Funding rates are periodic payments between traders holding opposing perpetual-futures positions, and rates for the same asset can differ between venues. In Boros’s Bitcoin market, the floating rate is Hyperliquid’s funding rate minus Gate’s. The spread can be negative.

A position is set against a fixed annual percentage rate (APR) at entry. A long position pays that fixed rate and receives the floating spread, benefiting when the spread is higher than the fixed rate. A short position receives the fixed rate and pays the floating spread.

The spread market combines exposure to the two venues’ funding rates, but it does not hedge changes in Bitcoin’s or Ether’s price. A cross-venue strategy that also hedges asset-price exposure still requires opposing perpetual-futures positions on Hyperliquid and Gate.

Settlement follows the less frequent funding schedule of the two venues. For the Hyperliquid-Gate market, settlement occurs every eight hours and uses the average of Hyperliquid’s hourly rates since the previous settlement.

Settlement losses reduce a position’s collateral. If losses persist, the position can move closer to liquidation.