Glossary
Definitions of key terms in the Plume Vaults ecosystem and DeFi more broadly.
Glossary
A quick-reference guide to terms you’ll encounter while using or exploring Plume Vaults.
AML Screening
Automated wallet screening system that checks addresses against global sanction and money laundering lists. Enforced onchain by the Plume sequencer.
APY (Annual Percentage Yield)
An annualized rate expressed as a percentage. Plume Vaults distinguishes between NAV APY, which measures performance reflected in the vault share price, and composition APY, which estimates yield from current invested positions. See APY Fields.
Asset
A financial instrument held inside a Plume Vault. Assets may include U.S. Treasuries, tokenized ETFs, private credit, or crypto-structured yield products.
BoringVault
An open-source smart contract standard for non-custodial yield vaults. Used across all Plume Vaults and audited by multiple firms.
Cicada Partners
An institutional risk manager that provides tokenized risk assessments for assets included in Plume Vaults.
DeFi (Decentralized Finance)
A financial system built on public blockchains that operates without centralized intermediaries. Plume Vaults is a DeFi-native protocol.
ERC-20
A widely used token standard on Ethereum and EVM-compatible chains. All Plume Vault tokens follow this format.
Nucleus
Plume Vaults' infrastructure partner responsible for powering cross-chain vault operations and integrations.
pUSD (Plume USD)
The stablecoin used for most deposits into Plume Vaults. It is the native stablecoin of the Plume ecosystem.
Plume
Chain ecosystem designed for real-world asset DeFi (RWAfi).
Redemption
The process of withdrawing stablecoins by redeeming vault tokens. Some redemptions are instant; others may take several days based on asset liquidity.
Tokenized Risk Assessment
A digital report attached to an asset or vault, outlining credit risk, regulatory status, and liquidity considerations. Typically created by third-party evaluators like Cicada Partners.
Vault
A non-custodial smart contract that holds and allocates capital to yield-generating assets. Each vault has its own strategy, APY, and redemption terms.
Vault Token
An ERC-20 token issued in exchange for stablecoins. Its value increases over time as the vault generates yield. Examples include nTBILL, nALPHA, and nPAYFI.