Buttonwood
Buttonwood Foundation operates Button Zero, a permissionless, non-custodial Ethereum-based DeFi protocol that enables zero-coupon, zero-liquidation borrowing and lending against crypto collateral through Uniswap v3-based A-Tranche and Z-Tranche bonds.
- Company typePrivate
- Founded2021
- Headquarters—
- Headcount1–10
- GTM typeB2C
- OfferingSoftware
What Buttonwood does
Buttonwood operates the Button Zero protocol through the Buttonwood Foundation, a nonprofit entity governed under New York law. Button Zero is a permissionless, non-custodial DeFi application built on the Ethereum blockchain that enables users to buy and sell crypto-backed zero-coupon bonds. Borrowers lock collateral (Bitcoin, Ethereum, AMPL, and other supported assets) and receive a one-time USDT loan with no liquidations, no margin calls, and no requirement to top up collateral; lenders purchase A-Tranche "future $1" tokens at a market-set discount via Uniswap v3 (or other AMMs), earning fixed yields at maturity while sharing collateral risk similar to banks in a housing loan.
The protocol's core technical architecture is a proprietary two-token tranche system that splits each loan's collateral into senior A-Tranches (redeemable for $1 of collateral at maturity) and junior Z-Tranches (representing residual equity value returned to the borrower). The discount rate is not set by a utilization curve but by open-market order-book dynamics on Uniswap v3, which functions as a "fuzzy" central limit order book for bond pricing. Rebasing wrappers for ETH and BTC were created to handle non-rebasing collateral via robust dollar-oracle rebases.
The business model is structurally pre-revenue at the entity level: the foundation operates the interface but does not appear to capture transaction fees, spreads, or protocol revenue disclosed in the source data. Distribution is purely self-serve and product-led — a web application at app.zero.button.finance accessed permissionlessly without KYC — supported by educational content on the foundation website, a whitepaper, FAQ, developer documentation, and a Twitter presence. Target users are two distinct DeFi segments: economic borrowers seeking fixed-rate, non-margin borrowing, and DeFi lenders seeking fixed yields via bond purchases rather than variable-rate pool lending.
Buttonwood firmographics
Firmographics- Name
- Buttonwood
- Legal name
- Buttonwood Foundation
- Website
- https://mooncake.prl.one
- Company type
- Private
- Founded year
- 2021
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Buttonwood Foundation operates Button Zero, a permissionless, non-custodial Ethereum-based DeFi protocol that enables zero-coupon, zero-liquidation borrowing and lending against crypto collateral through Uniswap v3-based A-Tranche and Z-Tranche bonds.
- Ownership category
- akta.pro rank
Buttonwood industry classification
Industry- Product category
- Decentralized Finance Protocol
- NAICS
- Mortgage and Nonmortgage Loan Brokers (522310)
- SIC
- Asset-Backed Securities (6189)
- akta.pro primary industry
- Decentralized Lending & Borrowing Protocols (FSADAMAA)
- akta.pro secondary industries
- Tokenized Debt, Notes & On-Chain Credit Instruments (FSADAFAM), Money Markets & Collateralized Debt Positions (CDPs) (FSADAMAM)
Keywords
Buttonwood business model
Business model- GTM type
- B2C
- Offering type
- Software
- Cost components
- Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales
Revenue model
- Interest Rate Spread on Zero-Coupon Bonds: Lenders purchase A-Tranche 'future $1' tokens at a discount, which serves as the one-time interest payment. The discount rate is market-set through Uniswap v3. For example, a lender buying 10 A-Tranche tokens for 8 USDT redeems them for $10 worth of collateral at maturity, earning a 25% yield.
- Bond Trading via AMM: A-Tranches and Z-Tranches are sold through Uniswap v3 or other AMMs, generating trading activity on the protocol.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels4 records
Buttonwood product offering
Product offeringCore offering
Button Zero is a permissionless DeFi protocol on Ethereum that enables users to buy and sell crypto-backed zero-coupon bonds. Borrowers lock collateral (Bitcoin, Ethereum, AMPL, and other assets) and receive USDT loans with zero liquidations and zero margin calls, paying one-time interest determined by market-set discount rates. Lenders purchase A-Tranche tokens at a discount via Uniswap v3 or other AMMs and earn fixed yields upon maturity. The protocol uses Uniswap v3 as a 'fuzzy' central limit order book and distributes risk through a proprietary tranche system (A-Tranches for senior lenders and Z-Tranches for residual/equity holders).
Product overview
Buttonwood offers a single unified product called Button Zero, a permissionless DeFi protocol for zero-coupon bond markets. The platform enables borrowing and lending against crypto collateral without traditional margin mechanics—no liquidations, no margin calls, no continuous interest rates. Lenders purchase discounted A-Tranche bonds via Uniswap v3; borrowers lock collateral and receive USDT loans with one-time interest payments. The system tranches collateral into senior (A-Tranche) and junior (Z-Tranche) risk layers, distributing yield and risk accordingly at maturity.
Differentiator
Problem solved
Functional benefit
Products and services
- Button Zero
Quantifiable outcome
- Borrowers face zero liquidations and zero margin calls, eliminating forced selling at worst prices
- +2 more outcomes
Companies that use Buttonwood
Customer profileSegments2 records
Ideal customer profiles2 records
Buttonwood technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration6 records
Feature4 records
Buttonwood partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core and minor.
- Uniswap v3coreUniswap v3 serves as the underlying bond market infrastructure for Button Zero, functioning as a 'fuzzy' central limit order book (CLOB). A-Tranches and Z-Tranches are sold via Uniswap v3 or other AMMs, enabling bond buyers and sellers to place limit orders and signal desired discounts.
- ImmuneficoreBug bounty platform hosting Button Zero's security vulnerability reward program with payouts up to $500,000. Covers smart contracts and rewards security researchers for discovering exploits.
- JAMSminorArbitration services provider used for dispute resolution as specified in the Terms of Service. Arbitrations are conducted under JAMS Optional Expedited Arbitration Procedures.
Recent moves5 records
Expansion highlights3 records
Buttonwood competitors and assessment
Company assessmentEmerging players
- Alchemix: Alchemix offers self-repaying loans via yield-collateralized debt positions, sharing Button Zero's positioning of DeFi lending without forced liquidations for economic users.
- Morpho: Morpho optimizes lending yields on top of Aave/Compound via peer-to-peer matching and recently introduced meta-vaults and tranched products that overlap with Button Zero's niche.
Direct peers
- Liquity: Liquity provides collateralized borrowing against ETH with no liquidations via a stability pool and one-time fees; it competes head-to-head with Button Zero for zero-liquidation economic borrowers.
- Notional Finance: Notional offers fixed-rate, fixed-term lending and borrowing on Ethereum via fCash primitives, directly competing for the same fixed-income DeFi borrower/lender audience as Button Zero.
- Pendle Finance: Pendle tokenizes yield into principal and yield tokens traded on AMMs, mirroring Button Zero's tranche-based approach to building a DeFi fixed-income market.
- Element Finance: Element Finance pioneered fixed-rate, tranched DeFi lending on Ethereum using yield stripping into 'principal' and 'yield' tokens, conceptually very close to Button Zero's A/Z tranche structure for zero-coupon bonds.
Regional players
- Maple Finance: Maple offers institutional, undercollateralized lending pools on Ethereum, adjacent to Button Zero's institutional-fixed-income ambitions while serving a different borrower profile (wholesale credit).
Broad incumbents
- Compound: Compound is one of the foundational DeFi money-market protocols with utilization-curve variable rates; it sets the benchmark Button Zero's fixed-rate, no-liquidation product is contrasted against.
- MakerDAO: MakerDAO enables DAI minting against crypto collateral via Collateralized Debt Positions and stability fees, an alternative architecture to Button Zero for non-margin, economic borrowing.
- Aave: Aave is the dominant variable-rate, overcollateralized DeFi lending protocol; it represents the incumbent model Button Zero differentiates against (variable rates, liquidation-based).
Market position
Strengths4 records
Weaknesses5 records
Competitive moat3 records
Key risks6 records
Key highlights5 records
Customer concentration
Buttonwood social profiles
Digital presenceButtonwood compliance and trust
Trust signalCompliance2 records
Buttonwood financial estimates
Financial estimateRevenue estimate
Valuation estimate
Buttonwood leadership team
Management profileNumber of profiles
Buttonwood funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Buttonwood M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Buttonwood
What does Buttonwood do?
Button Zero is a permissionless DeFi protocol on Ethereum that enables users to buy and sell crypto-backed zero-coupon bonds. Borrowers lock collateral (Bitcoin, Ethereum, AMPL, and other assets) and receive USDT loans with zero liquidations and zero margin calls, paying one-time interest determined by market-set discount rates. Lenders purchase A-Tranche tokens at a discount via Uniswap v3 or other AMMs and earn fixed yields upon maturity. The protocol uses Uniswap v3 as a 'fuzzy' central limit order book and distributes risk through a proprietary tranche system (A-Tranches for senior lenders and Z-Tranches for residual/equity holders).
Is Buttonwood a public or private company?
Buttonwood is a private company. It is classified as nonprofit foundation owned and is currently operating.
When was Buttonwood founded?
Buttonwood was founded in 2021. It employs 1 to 10 people.
How does Buttonwood make money?
Two revenue lines are on record. Interest Rate Spread on Zero-Coupon Bonds are the primary driver. The others are bond Trading via AMM.
Who are Buttonwood's main competitors?
Emerging players on record are Alchemix and Morpho. Direct peers are Liquity, Notional Finance, Pendle Finance and Element Finance. Maple Finance is listed as a regional player. Broad incumbents are Compound, MakerDAO and Aave.
Does Buttonwood have an API?
Yes. Auto Router API is mentioned in the Terms of Service as part of the Interface functionality. Users submit trades through this API. The developer documentation is available at docs.prl.one/buttonwood/buttonwood-basics/introduction-to-buttonwood. Developer documentation is at docs.prl.one/buttonwood/buttonwood-basics/introduction-to-buttonwood.
What industry is Buttonwood in?
Buttonwood's product category is Decentralized Finance Protocol. Its primary akta.pro industry code is FSADAMAA, Decentralized Lending & Borrowing Protocols, with a secondary code of FSADAFAM, Tokenized Debt, Notes & On-Chain Credit Instruments. Its NAICS code is 522310 and its SIC code is 6189.