Vaults
Understand how Plume Vaults work and why they’re non-custodial and composable.
Vaults
Plume Vaults are the foundation of the protocol. Each vault is a non-custodial smart contract that holds diversified, yield-generating assets. They’re designed to be transparent, compliant, and composable—powering both individual users and DeFi applications.
What Is a Vault?
A Plume Vault is a smart contract that:
- Mints vault tokens in exchange for stablecoins
- Allocates funds to a selection of tokenized RWAs
- Accrues yield via asset performance
- Allows users to redeem vault tokens for their underlying value
Vaults are fully onchain, audited, and non-custodial—meaning Plume Vaults never takes control of your funds.
Understanding APY in Plume Vaults
Plume Vaults reports NAV-based APY and composition-based APY because they answer different questions. NAV APY measures performance reflected in the vault share price, while composition APY estimates yield from the vault's current invested positions.
Learn how to choose and interpret Plume Vaults APY fields.
Understanding Vault NAV
Vaults are priced with a Net Asset Value (NAV). The vault NAV is calculated based on the total value of all assets held within the vault (stablecoins, liquidity buffer, underlying assets) on all chains the vault operates on.
An automated process checks the price of vault assets every hour to see if there have been update which necessitate a vault NAV update. To protect against pricing errors or oracle attacks, price updates are bounded to an upper and lower limit.