The Pendle protocol settled $45 billion in value for PT holders in 2025, helping to nearly double revenue year-over-year as TVL grew to an all-time-high of $13.4B. Pendle generates revenue through two streams: YT fees (taking 5% of all yield and points accrued) and swap fees from PT trading activity. It's a simple, sustainable model that scales with both TVL growth and trading volume.
But the real story for 2026 is about Boros—Pendle's new rates trading platform. Perpetuals markets have become the most traded financial market in crypto with open Interest (OI) of perp markets regularly exceeding $150-$200B, significantly bigger than the entire DeFi TVL of $120B.
Boros enables traders to express their view on funding rates. For those bullish on funding rates, they can open a long position whereas bears can open a short position. Boros also enables a new cross-exchange funding rate arbitrage, explained here.
Given identical asset exposure, funding rates should equilibrate across platforms through arbitrage. As persistent spreads exist daily, it presents arbitrage opportunities for those savvy enough to capture them with Boros. Traders can now actively arbitrage the funding rate gap across exchanges, locking in fixed returns while maintaining delta-neutral exposure.
With over $200M in OI already ($260M just recently) and increasing demand onchain for equity perps like NVDA or TSLA, Boros is positioning itself as a new essential platform for traders to hedge and trade funding rate volatility.
In our second episode of Revenue Meta on The Edge Podcast, TN Lee joins us to break down how every billion dollars in TVL translates to roughly $3M in protocol revenue, why vePENDLE is being replaced with the simpler and transferable sPENDLE token, and why rates trading could become a fundamental protocol in the growth of onhain perps trading.
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🔗 Guest Links 🔗
► Pendle website: pendle.finance/
► Boros website: boros.pendle.finance/markets
► Pendle on X: x.com/pendle_fi
► Boros on X: x.com/boros_fi
► TN Lee on X: x.com/tn_pendle
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DISCLAIMER: Nothing written in The Edge Newsletter or said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed in our content are solely the opinion of that writer, host, or guest. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this content.
