How to Use Plume Vaults
Everything you need to know to mint, earn, and redeem with Plume Vaults.
How to Use Plume Vaults
You deposit stablecoins into a Plume Vault to mint a receipt token representing your Share of the vault. The vault allocates deposited funds between a liquid reserve used to process deposits and withdrawals, and yield-generating assets that produce returns. As yield accrues, the value of the receipt token increases. When you redeem, you burn the receipt token to receive your pUSD plus any earned yield.
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End-to-End Flow
1. Getting Started
To get started, connect a supported Web3 wallet (e.g., MetaMask, Rabby, or Zerion) directly on the Plume Vaults portal. The protocol operates entirely on-chain and does not require custodial onboarding.
2. Acquire pUSD
pUSD is the standard deposit asset across all Plume Vaults and the native stablecoin of the Plume ecosystem. It is fully on-chain and backed 1:1 by USDC reserves, acting as the unified settlement layer for every Plume Vaults strategy. Before depositing into a vault, users mint or bridge into pUSD at https://pusd.plume.org/.
2. Mint Vault Tokens
Once you hold pUSD, you can deposit into any available Plume Vault, such as nBASIS, nALPHA, or nTBILL.
Upon deposit, you receive a vault receipt token (an “nTOKEN”). This token represents your proportional exposure to the strategy. The receipt token does not distribute yield separately. Instead, value accrues inside the vault, and this is reflected in an increasing redemption value per token over time.
3. Redeem Token to Claim Yield*
To exit, you redeem your nTOKEN to receive your original pUSD plus accrued yield. Redemption terms vary depending on the strategy.
Some vaults offer same-day liquidity, while others operate with structured redemption windows. Most vaults maintain a liquidity buffer via nTBILL to facilitate redemptions efficiently.
nTOKENs may be traded on secondary markets, including DEXs such as Rooster. Liquidity conditions vary by pool.
*Some vaults offer same-day liquidity. Others require 7 day cooldown. Most vaults have a 30% liquidity buffer using nTBILL, which has both atomic as well as same-day liquidity.
Key Concepts
| Concept | Description |
|---|---|
| Vault Receipt Token | ERC-20 or SPL receipt token users mint when they deposit stables into vaults. Vault token value goes up when yield is paid into the vault. |
| Performance | pUSD payments made to the vault from regulated financial assets that the vault buys. Some assets increase in value instead of paying in pUSD into the vault. |
| Non-custodial | You own both nTOKENs and pUSD in the vault - Plume Vaults never takes custody. |
AML Pre-Screening
While Plume Vaults is permissionless, Plume enforces on-chain AML screening at the sequencer level. This ensures compliance with global regulations without requiring KYC or off-chain checks. This means that anyone with a wallet can use our vaults to earn.
Learn more about this system here.