Unlocking Stable Profits in DeFi: How to Earn with Pendle's New BOROS Product and V2 App

In the fast-evolving world of decentralized finance (DeFi), Pendle Finance stands out as a pioneer in yield trading. With its innovative protocols, Pendle allows users to trade, hedge, and maximize yields from various crypto assets. Recently, on August 6, 2025, Pendle launched BOROS, a groundbreaking new product on the Arbitrum network that enables on-chain trading of funding rates for Bitcoin (BTC) and Ether (ETH). This launch has propelled Pendle's total value locked (TVL) to a record $8.5 billion, with the PENDLE token surging 45% to around $5.60. But BOROS isn't just hype—it's a tool designed to help users earn through speculation, hedging, and passive income strategies. Meanwhile, Pendle's established V2 App continues to offer robust ways to generate returns on yields without the complexities of traditional finance.

If you're looking to earn in DeFi, this article will dive deep into how BOROS and the V2 App work, step-by-step strategies for making money, and tips to optimize your earnings. Whether you're a seasoned trader or a DeFi newcomer, Pendle provides accessible, high-potential opportunities in yield trading.

What is Pendle Finance?

Pendle Finance is the world's largest crypto yield trading platform, specializing in tokenizing and trading yields from underlying assets. Founded to "liberate yield," Pendle separates the principal (the base asset) from its yield, creating tradable tokens like Principal Tokens (PT) and Yield Tokens (YT). This innovation allows users to buy fixed yields, speculate on yield fluctuations, or hedge against risks—all on-chain.

Pendle's ecosystem has grown exponentially. As of August 11, 2025, it boasts 8.571 billion in TVL and supports a wide range of assets, from staking rewards to funding rates. The platform's native token, PENDLE, is used for governance, incentives, and vePENDLE staking, where holders earn a share of protocol fees—up to 80% in some cases.

With BOROS, Pendle expands into margin-based yield trading, starting with perpetual futures funding rates. This complements the spot yield trading in the V2 App, creating a comprehensive suite for yield optimization.

Introducing BOROS: Pendle's New Frontier in Yield Trading

BOROS, derived from the Greek word for "to eat," symbolizes Pendle's ambition to consume and trade every form of yield in the world—on-chain and off-chain. Launched on Arbitrum for low fees and high speed, BOROS tokenizes funding rates from perpetual futures into Yield Units (YU). Funding rates are periodic payments between long and short positions in perps, often positive in bull markets (shorts pay longs) and negative in bears.

YU represents the cumulative funding rate yield for 1 unit of the underlying asset (BTC or ETH) until a fixed expiry date. This makes funding rates tradable like any other asset, unlocking new earning avenues.

Key features of BOROS include:

• Margin Trading with Leverage: Up to 1.4x leverage, allowing amplified positions.
• Open Interest Caps: Currently $20M for BTC and $15M for ETH to ensure stability.
• Vaults for Liquidity Providers: Earn swap fees, PENDLE rewards, and gains from APR changes.
• No New Token: BOROS integrates with PENDLE, directing 80% of fees to vePENDLE holders.

How to Earn with BOROS: Strategies for Maximum Profits

BOROS offers multiple ways to earn, from active trading to passive liquidity provision. Here's a breakdown:

1. Speculating on Funding Rates

If you believe funding rates will rise (e.g., in a bull market), go long on YU. Buy YU at a discount and sell when rates increase, profiting from the implied APR appreciation.

• Example: Suppose BTC funding rates are implied at 7.11% APR. Buy YU-BTC, and if rates climb to 10%, your YU value rises. With 1.4x leverage, a $1,000 position could yield amplified returns.
• Shorting Strategy: If rates are expected to fall, short YU to profit from declining yields. This is ideal for bearish perp traders hedging payments.

2. Hedging Perp Positions

Perp traders often face volatile funding rates. BOROS lets you lock in fixed rates.

• For Long Perps: If you're paying high funding, open a long YU position to receive fixed funding receivables, offsetting costs.
• For Short Perps: Receiving funding? Short YU to convert variable income into fixed yields.

This strategy can turn unpredictable funding into stable income, with users reporting fixed 7.11% APR hedges on BTC.

3. Passive Earning via Vaults

Don't want to trade actively? Provide liquidity to BOROS Vaults.

• Deposit into BTC or ETH vaults.
• Earn: Swap fees from traders, PENDLE incentives (proportional to volume), and gains if implied APR moves favorably.

Vaults are beginner-friendly, with no liquidation risk, and rewards compound automatically. 

Pendle V2 App: The Foundation for Yield Earnings

While BOROS focuses on margin and funding rates, Pendle's V2 App is the go-to for spot yield trading. Launched earlier, V2 allows users to trade yields without lockups or liquidation risks, making it ideal for conservative earners.

V2 separates assets into PT (fixed yield, like a bond) and YT (variable yield, for speculation).

Key features:

• No Lockups: Trade yields freely.
• Leverage Options: Long yields with up to several times exposure.
• Incentive Structure: Pools earn PENDLE rewards based on swap fees, with dynamic caps to optimize efficiency.

How to Earn with Pendle V2 App: Proven Strategies

V2's simplicity makes it a staple for DeFi yield farming.

1. Earning Fixed Yields

Buy PT for a guaranteed fixed APY on assets like ETH staking or stablecoins.

• Example: Deposit ETH, buy PT-eETH for a fixed 5-10% yield until maturity. Hold PT to redeem principal plus fixed yield—no volatility worries.

This is perfect for risk-averse users seeking stable returns above traditional savings.

2. Speculating on Yields

Buy YT to long variable yields. If yields rise (e.g., due to market hype), sell YT for profits.

• Leveraged Longs: Use V2's leverage to amplify gains on rising yields, like restaking protocols.

3. Liquidity Provision and Incentives

LP into V2 pools to earn:

• Swap fees (now lower to attract volume).
• PENDLE emissions, capped dynamically for efficiency.
• vePENDLE boosts: Stake PENDLE for up to 60% higher APY from protocol revenues.

Pools with high TVL, like those for Lido or Rocket Pool, often yield double-digit APYs from incentives alone.

BOROS vs. V2 App: How They Complement Each Other

BOROS and V2 are designed to work together. V2 handles spot yields for low-risk, steady earnings, while BOROS adds margin and funding rate exposure for higher-reward plays. Use V2 for base yields, then hedge with BOROS for optimized portfolios.

For instance, earn fixed staking yields in V2, then trade funding rates in BOROS for additional income. Both direct fees to vePENDLE, creating a unified earning ecosystem.

In addition, DeFi isn't risk-free. Impermanent loss in LPs, smart contract vulnerabilities, and market volatility apply. Funding rates can swing wildly, so use leverage cautiously. Always DYOR, start small, and monitor positions via Pendle's dashboard.

Conclusion

Pendle's BOROS and V2 App democratize yield trading, offering ways to earn from speculation, hedging, and passive LPs. With TVL soaring and expansions ahead, now's the time to dive in. Visit pendle.finance to connect your wallet, explore BOROS on Arbitrum, or trade yields in V2. Stake PENDLE for extra boosts and join the community on Discord or Telegram for tips.

Whether locking in fixed yields or trading funding futures, Pendle empowers you to maximize DeFi profits. Don't miss out—yield liberation awaits!