Boros, the derivatives platform built by Pendle, has rolled out a funding rate market for $SKHYNIX on Arbitrum. The market gives traders a way to hedge the volatile cost of holding perpetual positions ahead of the July 29 ADR event. Early positioning suggests many are betting the ADR premium will crater.
What the ADR event means
The ADR event — set for July 29 — is a scheduled trigger that can throw off perpetual swap funding rates. Funding rates are the periodic payments between longs and shorts on perp markets; they can spike when volatility picks up. The new $SKHYNIX market lets traders lock in or speculate on those costs before the event hits.
How the market works
Boros, which Pendle launched earlier this year, operates on Arbitrum. The $SKHYNIX funding rate market is essentially a fixed-for-floating swap tied to the funding rate of the underlying perpetual. Traders can take the long side (betting funding will stay high) or the short side (betting it will drop). The contract settles based on the realized funding rate over a set period.
Traders bet on a premium collapse
So far the market is skewed toward one outcome. According to the announcement first reported by Crypto Briefing, traders are betting on a collapse of the ADR premium. That suggests the market expects the event to compress the spread between the perpetual price and the spot price, likely lowering funding costs.
What’s next
The July 29 deadline is now a week away. With the funding rate market live, traders have a new tool to manage that risk — or to speculate on the direction of the premium. How the ADR event actually plays out will determine the winners.
