plaza finance

Where bondETH's yield come from? 🤔

1️⃣ The staking and restaking yield of ETH LSTs and LRTs backing bondETH
2️⃣ Levered investors paying for their leverage

More below 👇

How does bondETH pay yield in USDC? 🧐

Plaza runs a decentralized and permissionless auction to swap ETH LSTs and LRTs to USDC for bondETH coupon payments. 

Read more about the design here:

The Public Square for On-Chain Bonds and Leverage 📈 | Live on @base 🚀 | https://plaza.finance | Yapping here /plazafinance

If you haven't done so already, you should hold some bondETH on testnet... might be helpful for taking advantage of release dropping tomorrow 👀

https://testnet.plaza.finance/earn

Why does bondETH pay a USDC yield?

Because we all want $ income! It's easier for tradfi investors to understand. It's easier for you to pay bills and life expenses with USDC rather than ETH. You don't take ETH price risk on the income from your assets.

How does bondETH pay yield in USDC? 🧐

Plaza runs a decentralized and permissionless auction to swap ETH LSTs and LRTs to USDC for bondETH coupon payments. 

Read more about the design here: https://docs.plaza.finance/protocol-mechanics/coupon-auction