Whenever our brothers in the orderbooks start getting liquidated, I run to @boros_fi to short YUs, adding fuel to the fire. That is not irrational. - George Boros Pendle Intern presents... "The Alchemy of Boros" a quick thread 🧵

If there's one thing guaranteed in crypto, it's volatility. With YUs, you remove the price asset volatility... and just trade a perp market's funding rate. So why run to Boros to short YUs during market dumps?

When there's a liquidation cascade to the downside: 🔹 Perp prices often dislocate heavily from spot, and funding goes negative 🔹Longs get paid the negative funding, but YUs let you capture the funding rate via short YUs, WITHOUT risk of price exposure

Let's look at current funding rates across the board: 🔻ETH HL rates are negative 🔻ETH OKX rates are negative 🔻NVDA HL rates are negative (SUPER negative) 🔻ETH Binance rates are negative 🔻XRP Binance rates are negative It's not looking good, bro... or is it?

You see negative rates, I see YIELD waiting on the table. Delicious, unctuous yields. As long as the Underlying APR of these YUs stays negative AND below Implied APR, it's *free* money to short them. When there's a dump, don't long the dip. Short the YUs on Boros...

And don't forget to use Intern's code, "BIGDK". Short your YUs, collect your settlement profits, and close the shorts when rates revert to normal (typically 10.95% APR). Boom! You just harvested yield from our beloved crypto market.

Financial alchemy is easy with Boros, if you know what you're doing! TL;DR: 🔹don't knifecatch cascades, short YUs on Boros 🔹more negative rates = more settlement gains for shorts 🔹close when/before funding reverts to normal And that's all you need to do.

While crafting this masterpiece (@boros_fi writer could never), NVDA rates have dropped to -204% APR! If they stay like this and you're short NVDA YUs... you get paid out that rate in the next hour. Opportunities are abundant in Boros - if you know how to spot them!