Introduction

In this guide, we're going to take a look at Plaza Finance and learn how to use the platform to earn Plaza Points whilst increasing our on-chain activity.

What is Plaza Finance?

Plaza Finance is a decentralized platform built on Base, offering on-chain bonds and leverage via programmable derivatives implemented through Solidity smart contracts. The platform provides two main products: bondETH and levETH, which are derivatives tied to a pool of Ethereum-based liquid staking derivatives (LSTs) and liquid restaking derivatives (LRTs) such as wstETH.

Users can deposit assets like wstETH into the platform and receive bondETH or levETH—ERC20 tokens that are compatible with other DeFi protocols like DEXs, lending markets, and restaking platforms.

Plaza offers three primary user functions within its protocol:

1. Creations

Users can convert pool assets (e.g., wstETH) into bondETH or levETH.

2. Redemptions

Users can exchange programmable derivatives (bondETH or levETH) for the underlying pool assets (e.g., wstETH).

3. Coupon Claiming

Holders of bondETH can claim USDC payments at the end of a coupon distribution period.


Supporting Mechanisms

In addition to user actions, Plaza employs two mechanisms to facilitate its operations:

1. Merchant Auctions

A portion of pool assets (e.g., wstETH) is sold in exchange for USDC, which is then distributed to bondETH holders.

2. Distribution

USDC is distributed to bondETH holders, allowing them to claim coupon payments during designated distribution periods.


External Dependencies

Chainlink

• Plaza utilizes Chainlink Price Feeds to determine the value of pool assets and programmable derivatives during creation or redemption.
• A conditional AMM calculates the amount of assets to return to users based on the input values.

Step 1

First, head over to Plaza Finance & connect your wallet.





Step 2

Now press "Get Test Tokens".





Step 3

Now press "Explore the Plaza".





Step 4

On this page, we can buy bondETH using the testnet tokens we received earlier.

Press "Buy bondETH".


Insert any amount of wstETH and press the "Buy" button.





Step 5

Now if you head to your Portfolio page, you'll be able to see your bondETH position.

If it doesn't appear yet, wait 1-2 minutes then refresh page.





Step 6

Now let's check out the Leverage page.

Here we can press the "Buy" button which will take us to the swap page where we can buy levETH using our wstETH.


Now just insert any amount of wstETH and press "Buy".

Step 7

If you head over to the Rewards page and scroll down, you can find some rewards that can be claimed once you have earned a certain amount of points.





Step 8

Now let's join the Plaza Finance Guild to boost our Plaza Points.

We should also join the Plaza Finance Discord Server and verify ourselves so that we can unlock the task rewards on the Guild.


Once you have unlocked the reward, you can press "Reveal Secret" to earn your reward.

For this reward, we get a 10% multiplier on all the Plaza Points we earn!





Outro

That's all for this guide!

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Disclaimer: This guide is provided strictly for educational purposes and should not be considered financial advice. The content is designed to offer insights into various web3 topics & projects.

We do not recommend putting real money into random projects without conducting plenty of your own research first. It is crucial to make informed decisions based on your own understanding and risk tolerance.