Pendle’s Boros platform just rolled out a funding rate market for the SK Hynix perpetual contract on Hyperliquid, and the timing is anything but accidental. With SK Hynix ADRs trading at a premium exceeding 20% over their Korean-listed shares, and a conversion window set to reopen on July 29, traders are scrambling to position for what could be a rapid price convergence.
The new market lets traders fix, hedge, or speculate on the funding rates attached to the SKHYNIX perp, a contract that has averaged annualized funding rates of roughly 64% since listing. In English: holding a long position on this perp has been absurdly expensive, and now there’s finally a tool to manage that cost.
The arbitrage play driving the launch
Here’s the setup. SK Hynix, the South Korean memory chip giant, raised approximately $26.5 billion through a US ADR offering priced at $149. The offering was massively oversubscribed, which created a supply squeeze on the American-listed shares.
That squeeze pushed ADR prices well above the equivalent Korean share price, creating a premium of more than 20%. The classic trade is straightforward: buy the cheaper Korean shares, short the expensive ADRs, and wait for the prices to converge.
