{"id":"plaza-finance","title":"Plaza Finance","content":"**Plaza Finance** is a platform for on-chain bonds and [leverage](https://iq.wiki/wiki/leverage), operating on the [Base](https://iq.wiki/wiki/base) [blockchain](https://iq.wiki/wiki/blockchain). It offers programmable derivatives that enable users to create and trade tokenized financial products with enhanced liquidity and composability compared to traditional synthetic contracts.\n\n## Overview\n\nPlaza Finance functions as a cross-ecosystem hub for programmable derivatives, allowing users to access structured financial products through its protocol. The platform operates through a set of [Solidity](https://iq.wiki/wiki/solidity) [smart contracts](https://iq.wiki/wiki/smart-contract) deployed on [Base](https://iq.wiki/wiki/base), a [Layer 2](https://iq.wiki/wiki/layer-2) [Ethereum](https://iq.wiki/wiki/ethereum) scaling solution. Plaza's core offerings include two primary products: bondETH and levETH, which represent different risk-return profiles derived from a pool of [Ethereum](https://iq.wiki/wiki/ethereum) [liquid staking](https://iq.wiki/wiki/liquid-staking) derivatives (LSTs) and liquid restaking derivatives (LRTs) [[1]](#cite-id-KV9chGKKPE).\n\nThe protocol enables users to deposit underlying pool assets like [wstETH](https://iq.wiki/wiki/wrapped-steth-wsteth) (wrapped staked Ethereum) and receive either bondETH or levETH in return. These tokens are represented as [ERC-20](https://iq.wiki/wiki/erc-20) tokens, making them composable with other [DeFi](https://iq.wiki/wiki/defi) protocols such as [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) (DEXs), lending markets, and restaking platforms [[1]](#cite-id-KV9chGKKPE).\n\n$$widget0 [YOUTUBE@VID](https://www.youtube.com/watch?v=vjYrt69wxGI)$$\n\nPlaza Finance operates in a fully [permissionless](https://iq.wiki/wiki/permissionless) manner, with each core function of the protocol executable by anyone. The platform aims to provide more sophisticated financial instruments for [DeFi](https://iq.wiki/wiki/defi) users without increasing network complexity, offering alternatives to traditional futures markets and lending protocols for yield generation and [leverage](https://iq.wiki/wiki/leverage) [[2]](#cite-id-guiYXgjlqy).\n\n## Key Products\n\n### bondETH\n\nbondETH is designed for yield-focused investors seeking predictable returns from [Ethereum](https://iq.wiki/wiki/ethereum) [staking](https://iq.wiki/wiki/staking) without the complexity or volatility typically associated with [DeFi](https://iq.wiki/wiki/defi) investments. It functions as a high-yield bond backed by ETH LSTs and LRTs that provides users with:\n- Fixed [USDC](https://iq.wiki/wiki/usdc) income streams through quarterly coupon payments;\n- Exposure to a diversified pool of [liquid](https://iq.wiki/wiki/liquid) [staking](https://iq.wiki/wiki/staking) and restaking tokens;\n- Lower volatility compared to direct ETH exposure;\n- Composability with other DeFi protocols.\n\nThe bondETH token represents a more conservative investment strategy within the Plaza ecosystem, targeting users who prioritize stable income over capital appreciation [[3]](#cite-id-0qUjUmCGlT) [[2]](#cite-id-guiYXgjlqy).\n\n### levETH\n\nlevETH offers leveraged exposure to [Ethereum](https://iq.wiki/wiki/ethereum) without the [liquidation](https://iq.wiki/wiki/liquidation) risks typically associated with margin trading or borrowing. Key features include:\n- Synthetic [leverage](https://iq.wiki/wiki/leverage) without [liquidation](https://iq.wiki/wiki/liquidation) risk;\n- \"Set it and forget it\" approach to leveraged positions;\n- Exposure to ETH price movements with amplified returns;\n- No need for active position management or [liquidation](https://iq.wiki/wiki/liquidation) monitoring.\n\nThis product is designed for users with a [bullish](https://iq.wiki/wiki/bullish) outlook on [Ethereum](https://iq.wiki/wiki/ethereum) who want to amplify their exposure while minimizing downside risks compared to traditional leveraged trading methods [[3]](#cite-id-0qUjUmCGlT) [[2]](#cite-id-guiYXgjlqy).\n\n## Protocol Mechanics\n\nPlaza Finance operates through several [core](https://iq.wiki/wiki/core-dao) mechanisms:\n\n### Creation (Buy)\n\nUsers can convert pool assets like [wstETH](https://iq.wiki/wiki/wrapped-steth-wsteth) into bondETH or levETH. This process involves interacting with the protocol's smart contracts to deposit the underlying asset and receive the corresponding derivative tokens [[4]](#cite-id-Vct4NlAIs0).\n\n### Redemption (Sell)\n\nUsers can exchange their programmable derivatives (bondETH or levETH) back for underlying pool assets like [wstETH](https://iq.wiki/wiki/wrapped-steth-wsteth). This provides liquidity and exit options for token holders [[5]](#cite-id-G7nVM9kqo2).\n\n### Coupon Claiming\n\nbondETH holders can collect [USDC](https://iq.wiki/wiki/usdc) payments at the end of each coupon distribution period. These payments represent the yield generated from the underlying staked assets [[6]](#cite-id-6dMlcMw7Ka).\n\n### Merchant Auctions\n\nThe protocol sells a portion of pool assets like [wstETH](https://iq.wiki/wiki/wrapped-steth-wsteth) in exchange for [USDC](https://iq.wiki/wiki/usdc) to distribute to bondETH holders at each coupon distribution. This mechanism ensures that bondETH holders receive their yield in a stable asset [[7]](#cite-id-J2on4ghrsA).\n\n### Distribution\n\nThe process of distributing [USDC](https://iq.wiki/wiki/usdc) to bondETH holders who can claim coupon payments during the distribution period [[8]](#cite-id-OhTIIDZ4aP).\n\n## Technology\n\nPlaza Finance is built on a set of [Solidity](https://iq.wiki/wiki/solidity) [smart contracts](https://iq.wiki/wiki/smart-contract) deployed on the [Base](https://iq.wiki/wiki/base) [blockchain](https://iq.wiki/wiki/blockchain). The protocol relies on several key technological components:\n- **Chainlink Price Feeds**: [Oracle](https://iq.wiki/wiki/oracle) services that provide price data for underlying assets and derivatives during creation and redemption processes;\n- **Conditional AMM**: Determines the amount of returned assets based on prices and quantities during creations and redemptions;\n- **ERC20 Tokens**: Both bondETH and levETH are implemented as standard [ERC-20](https://iq.wiki/wiki/erc-20) tokens for maximum composability;\n- **Pool Contracts**: Manage the underlying assets that back the derivative tokens;\n- **Distributor Contracts**: Handle the distribution of coupon payments to bondETH holders.\n\nThe protocol's architecture allows its derivative tokens to remain liquid and integrate seamlessly with other [DeFi](https://iq.wiki/wiki/defi) platforms while supporting [Ethereum's](https://iq.wiki/wiki/ethereum) network security through [staking](https://iq.wiki/wiki/staking) [[9]](#cite-id-b0KXPzbdwW).\n\n## Partnerships and Integrations\n\nPlaza Finance has established partnerships with several prominent [blockchain](https://iq.wiki/wiki/blockchain) projects:\n- **Base**: The primary [blockchain](https://iq.wiki/wiki/blockchain) where Plaza Finance is deployed;\n- **Coinbase Wallet**: [Wallet](https://iq.wiki/wiki/cryptocurrency-wallet) integration for user access;\n- **Chainlink**: Provides [oracle](https://iq.wiki/wiki/oracle) services for price feeds;\n- **EtherFi**: Supports eETH as an underlying asset;\n- **Gelato**: Automation services;\n- **LIFI**: Cross-chain bridging capabilities;\n- **LayerZero**: Partnership for cross-chain deployment of programmable derivatives;\n- **RainbowKit**: Wallet connection interface;\n- **Renzo Protocol**: Integration partner;\n- **Skip**: Strategic partner;\n- **Kelp**: Integration partner;\n- **Rocketpool**: Supports rETH as an underlying asset;\n- **Aerodrome Finance**: [DEX](https://iq.wiki/wiki/decentralized-exchange) partner for trading Plaza's tokens.\n\nThese partnerships enhance Plaza's functionality and reach across the [DeFi](https://iq.wiki/wiki/defi) ecosystem [[3]](#cite-id-0qUjUmCGlT) [[2]](#cite-id-guiYXgjlqy).\n\n## Funding and Investors\n\nPlaza Finance secured a $2.5 million pre-seed funding round led by Anagram Ventures in 2024. Other investors include:\n- Interop Ventures;\n- [Cosmostation](https://iq.wiki/wiki/cosmostation);\n- Ambush Capital;\n- Informal Systems;\n- Skip.\n\nThis funding supports Plaza's development and expansion plans for its programmable derivatives platform [[2]](#cite-id-guiYXgjlqy) [[10]](#cite-id-byDSc3AVdZ).\n\n## Community and Governance\n\nPlaza Finance maintains an active community across several platforms. The project has implemented a points system called Plaza Points (PP) to reward early users and community members. This system has gone through multiple phases:\n- **Pre-Season Guide:** Initial community building;\n- **Season 1 Guide:** Expanded rewards and participation;\n- **Season 2 Guide:** Current reward structure.\n\nThese points may potentially factor into future governance or token distribution plans [[11]](#cite-id-CjUYvAdNeE).\n\n## Future Roadmap\n\nPlaza Finance has outlined several key initiatives for future development:\n- Cross-chain expansion through [LayerZero](https://iq.wiki/wiki/layerzero) integration;\n- Development of additional programmable derivatives including bondBTC and levBTC;\n- Support for [Solana](https://iq.wiki/wiki/solana)-based assets;\n- Integration with [real-world assets](https://iq.wiki/wiki/real-world-assets-rwas) (RWAs);\n- Expanded partnerships with major [DeFi](https://iq.wiki/wiki/defi) protocols.\n\nThe long-term vision is to position Plaza as a comprehensive marketplace for tokenized investment products across multiple [blockchains](https://iq.wiki/wiki/blockchain). [[2]](#cite-id-guiYXgjlqy)[[12]](#cite-id-ZFhdvQ3KmV)","summary":"Plaza Finance is a platform for on-chain bonds and leverage, offering programmable derivatives like bondETH and levETH on the Base network.","images":[{"id":"QmWSgkQwAUb9xoUcvkccdPEyXTJXdVFcKxyVN6ijXEtr5b","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Protocols"},{"id":"DEXes"},{"id":"Marketplaces"}],"media":[{"id":"QmUqvaD9GfLKKJAp6TCHmHRAj6gTMWi8iupY8RrNNWxASS","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmcZnJovdA9R79ukELg3kRds6YvE6GnwqaASHL55p4DRnJ","name":"Cópia de Design sem nome.png","caption":"","thumbnail":"QmcZnJovdA9R79ukELg3kRds6YvE6GnwqaASHL55p4DRnJ","source":"IPFS_IMG"},{"id":"QmU6RcxA4wCcfCWWRW722Ubd5jpzUAxqYR969n3wKhaxnK","name":"IgQd5A2dnXn4rZsJE9CA8Y7NzNf1720441428573_200x200.png","caption":"","thumbnail":"QmU6RcxA4wCcfCWWRW722Ubd5jpzUAxqYR969n3wKhaxnK","source":"IPFS_IMG"},{"id":"QmYnGPqvzsTtu2fs1bbvzE9mjTZSJvnaRJGxyNWwoTMKJG","name":"plaza_finance1720430782627.png","caption":"","thumbnail":"QmYnGPqvzsTtu2fs1bbvzE9mjTZSJvnaRJGxyNWwoTMKJG","source":"IPFS_IMG"},{"id":"QmUqvaD9GfLKKJAp6TCHmHRAj6gTMWi8iupY8RrNNWxASS","name":"Plaza-Brandmark-Color3x.png","caption":"","thumbnail":"QmUqvaD9GfLKKJAp6TCHmHRAj6gTMWi8iupY8RrNNWxASS","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=vjYrt69wxGI","name":"vjYrt69wxGI","caption":"","thumbnail":"https://www.youtube.com/watch?v=vjYrt69wxGI","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"KV9chGKKPE\",\n    \"url\": \"https://docs.plaza.finance/\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"guiYXgjlqy\",\n    \"url\": \"https://blockster.com/plaza-finance-debuts-bondeth-and-leveth-on-base-ushering-in-a-new-era-of-programmable-derivatives\",\n    \"description\": \"Blockster article\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"0qUjUmCGlT\",\n    \"url\": \"https://www.plaza.finance/\",\n    \"description\": \"Official website\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"Vct4NlAIs0\",\n    \"url\": \"https://docs.plaza.finance/protocol-mechanics/create-buy\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"G7nVM9kqo2\",\n    \"url\": \"https://docs.plaza.finance/protocol-mechanics/redeem-sell\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"6dMlcMw7Ka\",\n    \"url\": \"https://docs.plaza.finance/protocol-mechanics/claiming-coupons\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"J2on4ghrsA\",\n    \"url\": \"https://docs.plaza.finance/protocol-mechanics/coupon-auction\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"OhTIIDZ4aP\",\n    \"url\": \"https://docs.plaza.finance/protocol-mechanics/coupon-distributions\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"b0KXPzbdwW\",\n    \"url\": \"https://defi-planet.com/2025/04/plaza-finance-launches-programmable-tokens-bondeth-and-leveth-on-base/\",\n    \"description\": \"DeFi Planet article\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"byDSc3AVdZ\",\n    \"url\": \"https://crypto-fundraising.info/projects/plaza-finance/\",\n    \"description\": \"Crypto Fundraising info\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"CjUYvAdNeE\",\n    \"url\": \"https://docs.plaza.finance/plaza-points-pp/season-2-guide\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  },\n  {\n    \"id\": \"ZFhdvQ3KmV\",\n    \"url\": \"https://docs.plaza.finance/contracts/audit-reports\",\n    \"description\": \"Official documentation\",\n    \"timestamp\": 1746641955420\n  }\n]"},{"id":"website","value":"https://www.plaza.finance/"},{"id":"discord_profile","value":"https://discord.gg/plazafinance"},{"id":"telegram_profile","value":"https://t.me/plazafinance"},{"id":"twitter_profile","value":"https://x.com/plaza_finance"},{"id":"github_profile","value":"https://github.com/Convexity-Research/plaza-contracts"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmVTXM6RyZWGvX3kzadW55d6i52bawxHj7FNdUsWFSTenm\""},{"id":"commit-message","value":"\"Republishing Plaza Finance wiki with updated linked wikis.\""},{"id":"previous_cid","value":"QmVTXM6RyZWGvX3kzadW55d6i52bawxHj7FNdUsWFSTenm"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":["ryan-galvankar"],"speakers":[]}}