# Boros by Pendle Finance
> Trade funding rates on leverage. Speculate on rate shifts or hedge perpetuals funding rate exposure.

Boros is a DeFi derivatives protocol built by Pendle Finance that enables leveraged trading of funding rates from perpetual futures markets. It uses a hybrid order book and automated market maker (AMM) model with periodic settlement, currently deployed on Arbitrum. Users can speculate on funding rate movements, hedge funding rate exposure from perpetual futures positions, or lock in fixed yield through cash-and-carry strategies.

## What is a Funding Rate?

A funding rate is a periodic payment exchanged between long and short traders in perpetual futures markets to keep the contract price aligned with the spot price. Positive funding rates mean longs pay shorts; negative rates mean shorts pay longs. Boros lets users trade this rate as an asset — going long receives the floating funding rate, going short pays a fixed rate.

## Key Features

- **Funding Rate Trading**: Take leveraged long or short positions on perpetual futures funding rates
- **Hedging**: Offset funding rate costs on other perp platforms by receiving payments on Boros
- **Cash-and-Carry Yield**: Lock in fixed yield by combining a spot long with a short funding rate position
- **Interest Rate Swaps**: Swap fixed vs. floating rate exposure on Arbitrum
- **Hybrid AMM + Order Book**: Deep liquidity with on-chain settlement

## How It Works

1. Users deposit collateral and open a position — long (receive floating funding rate) or short (pay fixed, receive collateral return)
2. Funding rate payments accrue continuously based on real-time rates from reference perpetuals markets
3. Positions settle periodically; profit and loss are realized against the collateral pool
4. Liquidity providers (LPs) earn fees by providing depth to the AMM

## Who Built Boros?

Boros was built by the Pendle Finance team. Pendle Finance is a DeFi protocol specializing in yield trading and tokenization, and the team behind the PENDLE token. Boros applies Pendle's yield-market expertise to off-chain perpetual futures funding rates.

## Security

Boros has been audited by three independent security firms:
- ChainSecurity
- Spearbit
- WatchPug

Audit reports are publicly available in the Boros GitHub repository.

## Documentation
- [Boros Overview](https://docs.pendle.finance/boros-docs/Introduction)
- [Boros Academy](https://docs.pendle.finance/boros-academy/Introduction)

## Parent Protocol
- [Pendle Finance](https://www.pendle.finance)
- [Pendle Docs](https://docs.pendle.finance)

## Code
- [Boros Core (public)](https://github.com/pendle-finance/boros-core-public)
- [Boros SDK (public)](https://github.com/pendle-finance/sdk-boros-public)

## Security
- [ChainSecurity Audit](https://github.com/pendle-finance/boros-core-public/tree/main/audits/ChainSecurity)
- [Spearbit Audit](https://github.com/pendle-finance/boros-core-public/tree/main/audits/Spearbit)
- [WatchPug Audit](https://github.com/pendle-finance/boros-core-public/tree/main/audits/WatchPug)

## Community
- [Twitter/X](https://twitter.com/pendle_fi)
- [Discord](https://discord.com/invite/EAujvncY2R)
- [Blog](https://medium.com/pendle)