Plaza Finance, the pioneering platform for on-chain bonds and leverage, is launching its core protocol on Base, introducing the first programmable derivative tokens to the network: bondETH and levETH. These assets unlock novel strategies for yield generation and leveraged exposure to Ethereum within the decentralized finance (DeFi) ecosystem.
Catering to the risk-conscious DeFi user seeking consistent and predictable returns, bondETH grants holders a fixed USDC income stream derived from a diversified pool of staked and restaked Ethereum liquid staking tokens (LSTs and LRTs).
For the long-term ETH bull, levETH provides leveraged exposure to Ethereum without the constant threat of liquidation. By removing some of the key risks associated with traditional leveraged trading on perpetual futures exchanges and lending protocols, levETH empowers users to more confidently amplify their exposure to Ethereum’s growth potential, fostering sustained and robust participation in the asset’s upward trajectory.
The current DeFi landscape suffers from limited investment product diversity, often skewing towards short-term leveraged trading and trapping user funds within specific platforms. Programmable derivatives are crucial to overcoming these limitations by enabling the creation of tailored financial instruments.
Following strong community interest demonstrated by 600k testnet users and $1.5m in early deposits, this launch signifies a significant leap forward in the utility of staked and restaked ETH. The underlying assets backing bondETH and levETH actively contribute to Ethereum’s economic security through staking and restaking. At the same time, investors benefit from liquid tokens that seamlessly integrate into the broader DeFi landscape. Programmable derivatives like bondETH and levETH combine the benefits of liquid staking and restaking with customizable risk and reward profiles, catering to a diverse range of investor strategies.
To further amplify the utility and accessibility of bondETH and levETH, Plaza Finance has forged a strategic partnership with Layer Zero, the industry-leading omnichain interoperability protocol renowned for its battle-tested speed and security. This collaboration will enable the efficient and secure expansion of Plaza Finance’s innovative derivatives to additional blockchain networks, broadening their reach and impact across the multi-chain DeFi landscape.
Ryan Galvankar, Founder of Plaza Finance, said, “This launch is the culmination of extensive development and rigorous testing, empowering a global user base to securely access high-quality decentralized assets and solidifying Plaza Finance at the forefront of DeFi innovation. At Plaza Finance, we believe in open access, global liquidity, and incentive-aligned fee markets. Programmable derivatives are the next wave of global capital markets infrastructure. We’re just getting started.”
Building on its $2.5m pre-seed round led by Anagram Ventures in 2024, the launch of bondETH and levETH solidifies Plaza Finance’s position in DeFi and sets the stage for future expansion with bondBTC, levBTC, along with derivatives on SOL and real-world assets (RWAs), broadening on-chain utility.