Since the beginning of this year, the real-world asset (RWA) sector has maintained a high level of activity, with a total on-chain market value surpassing $23.9 billion (excluding stablecoins). In the INVEST section of the RWA.XYZ data platform, besides well-known industry portfolios like BUIDL and PAXOS GOLD, Nest, as one of the representative RWA investment strategies within the Plume ecosystem, has gradually attracted market attention.
Nest provides users with a way to deposit stablecoins into the RWA Vault and earn corresponding yield tokens by building a diversified RWA Vault. The underlying assets of these Vaults cover a variety of asset classes, including government bonds, private credit, energy, and more. The nTOKEN minted by the Vault can be used on-chain with stablecoins and other asset combinations, and coupled with the PLUME token incentive mechanism, it creates an innovative model attempting to connect traditional RWA with DeFi.
What is NEST?
Nest is a RWA protocol product launched by Plume, belonging to a category that packages real-world assets into on-chain vaults and issues tokens to the public through an "on-chain yield strategy." In terms of overall architecture, Nest is more like a modular fund system built around real assets. Nest itself does not hold user funds; all funds are directly locked in on-chain smart contracts, ensuring the security and transparency of the funds.
Each Vault corresponds to a set of real assets issued by financial institutions, including US Treasury bonds, private credit, ETFs, structured debt, etc. These assets are provided by regulated entities and held by custodians, with the asset issuance and management process subject to compliance audits, and on-chain data being publicly accessible. Compared to some traditional RWA projects that still rely on manual operations or back-office clearing, Nest achieves fully on-chain automated execution, with asset circulation rules and profit distribution written into smart contracts, minimizing human intervention to the greatest extent.
In terms of compliance processing, Nest leverages Plume's underlying AML and threat screening mechanisms to exempt traditional KYC processes, achieving compliant access. Users only need to hold a wallet address to participate, lowering the threshold and broadening the applicability.
The flow of fund usage is direct and transparent. Users deposit the stablecoin pUSD into the Vault, and the system instantly mints nTOKENs (such as nALPHA, nETF, etc.) that represent the holdings. These tokens automatically appreciate as the assets in the Vault generate returns and can be circulated and used in Plume's DEX or lending protocols, creating a closed-loop ecosystem for on-chain asset liquidity and appreciation.
In short, Nest presents a fixed income strategy originally only available to institutions in an on-chain manner, allowing ordinary users to obtain on-chain yield rights to corresponding assets through stablecoins. The process does not require account opening or manual approval, funds do not pass through any platform accounts, and the entire process is executed by smart contracts, combining compliance, security, and composability, thus opening a more transparent and accessible entry point for RWA investments.
Nest's Vault Yield Mechanism
Vault is a core component of the Nest protocol, essentially an on-chain smart contract pool used to configure real-world assets and automatically distribute returns. After users deposit pUSD, the Vault mints nTOKENs (such as nALPHA, nTBILL, nETF, etc.) that represent the holdings, and their value continues to rise with the cash flow generated by the underlying assets.
Each Vault corresponds to a specific asset allocation strategy, with varying risks and return expectations:
Nest Alpha Vault (nALPHA): Target APY 11.50%, mainly composed of private credit, commodity funds, and structured credit, suitable for investors seeking high returns.
Nest Treasuries Vault (nTBILL): Target APY 5.50%, assets primarily consist of short-term US Treasuries, emphasizing stability and liquidity.
Nest Basis Vault (nBASIS): Target APY 8.00%, employing a hedge structure of cryptocurrencies and government bonds, designed as a price-neutral strategy.
Nest ETF Vault (nETF): Target APY 8.80%, configured with institutional ETFs such as BUCK, Blackstone SRLN, etc., focusing on stable income dividends.
Nest PayFi Vault (nPAYFI): Target APY 14.00%, asset sources include accounts receivable, invoice installments, and other fintech debt rights, with higher risk and return.
The yield calculation is performed in real-time on the blockchain. When assets generate interest or cash inflows, the Vault automatically adds the earnings to the total assets, increasing the redemption value of each nTOKEN, allowing users to enjoy the earnings without manual claim. nTOKEN is a standard ERC-20 token that can be borrowed, traded within the Plume ecosystem, and redeemed, with redemption subject to the corresponding liquidity period.
The annualized yield displayed for each Vault is an estimated value (Estimated APY), based on the past performance of the asset portfolio and market data. Actual returns will be affected by market volatility, dynamic asset allocation, and other factors. The Nest page also shows the actual yield over the past 7 days (Current APY) for users' reference and judgment.
Liquidity and Risk Considerations of the RWA Vault
Unlike traditional DeFi products that allow for instant redemption, there is a time delay for fund withdrawals in Nest Vault. Some Vaults support same-day redemptions, but most withdrawals require a wait of 7 to 10 days, depending on the liquidity characteristics of the underlying assets. This feature is not friendly for users who frequently adjust their portfolios or engage in short-term arbitrage.
Due to limited liquidity, investors must bear certain risks of capital lock-up. Nest provides compensation for this risk by issuing PLUME tokens as incentives. Participating in the incentive mechanism also requires locking up Royco tokens, which, while offering high returns, limits liquidity and flexibility.
From the perspective of the revenue structure, the Vault's earnings come from real-world stable cash flows, rather than relying on new funds or token price increases, which provides strong sustainability. For investors willing to accept a lock-up period and understand the operation rhythm of RWA, Nest offers a clear risk-return structure and a well-designed incentive mechanism for on-chain allocation.
Summary
Nest, as an attempt to combine RWA and DeFi, is exploring feasible pathways for on-chain investment in real assets. It provides a relatively compliant and liquid solution for the on-chainization of traditional assets, but finding a balance between asset security, liquidity, and yield stability remains a core challenge that this sector needs to continuously tackle in the future. The performance of Nest may offer valuable insights for the deep integration of RWAfi and DeFi, but its maturity and widespread application still need to be tested by the market.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
The RWA track is heating up, is NEST the prototype of RWAFi+Decentralized Finance?
Written by: ChandlerZ, Foresight News
Since the beginning of this year, the real-world asset (RWA) sector has maintained a high level of activity, with a total on-chain market value surpassing $23.9 billion (excluding stablecoins). In the INVEST section of the RWA.XYZ data platform, besides well-known industry portfolios like BUIDL and PAXOS GOLD, Nest, as one of the representative RWA investment strategies within the Plume ecosystem, has gradually attracted market attention.
Nest provides users with a way to deposit stablecoins into the RWA Vault and earn corresponding yield tokens by building a diversified RWA Vault. The underlying assets of these Vaults cover a variety of asset classes, including government bonds, private credit, energy, and more. The nTOKEN minted by the Vault can be used on-chain with stablecoins and other asset combinations, and coupled with the PLUME token incentive mechanism, it creates an innovative model attempting to connect traditional RWA with DeFi.
What is NEST?
Nest is a RWA protocol product launched by Plume, belonging to a category that packages real-world assets into on-chain vaults and issues tokens to the public through an "on-chain yield strategy." In terms of overall architecture, Nest is more like a modular fund system built around real assets. Nest itself does not hold user funds; all funds are directly locked in on-chain smart contracts, ensuring the security and transparency of the funds.
Each Vault corresponds to a set of real assets issued by financial institutions, including US Treasury bonds, private credit, ETFs, structured debt, etc. These assets are provided by regulated entities and held by custodians, with the asset issuance and management process subject to compliance audits, and on-chain data being publicly accessible. Compared to some traditional RWA projects that still rely on manual operations or back-office clearing, Nest achieves fully on-chain automated execution, with asset circulation rules and profit distribution written into smart contracts, minimizing human intervention to the greatest extent.
In terms of compliance processing, Nest leverages Plume's underlying AML and threat screening mechanisms to exempt traditional KYC processes, achieving compliant access. Users only need to hold a wallet address to participate, lowering the threshold and broadening the applicability.
The flow of fund usage is direct and transparent. Users deposit the stablecoin pUSD into the Vault, and the system instantly mints nTOKENs (such as nALPHA, nETF, etc.) that represent the holdings. These tokens automatically appreciate as the assets in the Vault generate returns and can be circulated and used in Plume's DEX or lending protocols, creating a closed-loop ecosystem for on-chain asset liquidity and appreciation.
In short, Nest presents a fixed income strategy originally only available to institutions in an on-chain manner, allowing ordinary users to obtain on-chain yield rights to corresponding assets through stablecoins. The process does not require account opening or manual approval, funds do not pass through any platform accounts, and the entire process is executed by smart contracts, combining compliance, security, and composability, thus opening a more transparent and accessible entry point for RWA investments.
Nest's Vault Yield Mechanism
Vault is a core component of the Nest protocol, essentially an on-chain smart contract pool used to configure real-world assets and automatically distribute returns. After users deposit pUSD, the Vault mints nTOKENs (such as nALPHA, nTBILL, nETF, etc.) that represent the holdings, and their value continues to rise with the cash flow generated by the underlying assets.
Each Vault corresponds to a specific asset allocation strategy, with varying risks and return expectations:
Nest Alpha Vault (nALPHA): Target APY 11.50%, mainly composed of private credit, commodity funds, and structured credit, suitable for investors seeking high returns.
Nest Treasuries Vault (nTBILL): Target APY 5.50%, assets primarily consist of short-term US Treasuries, emphasizing stability and liquidity.
Nest Basis Vault (nBASIS): Target APY 8.00%, employing a hedge structure of cryptocurrencies and government bonds, designed as a price-neutral strategy.
Nest ETF Vault (nETF): Target APY 8.80%, configured with institutional ETFs such as BUCK, Blackstone SRLN, etc., focusing on stable income dividends.
Nest PayFi Vault (nPAYFI): Target APY 14.00%, asset sources include accounts receivable, invoice installments, and other fintech debt rights, with higher risk and return.
The yield calculation is performed in real-time on the blockchain. When assets generate interest or cash inflows, the Vault automatically adds the earnings to the total assets, increasing the redemption value of each nTOKEN, allowing users to enjoy the earnings without manual claim. nTOKEN is a standard ERC-20 token that can be borrowed, traded within the Plume ecosystem, and redeemed, with redemption subject to the corresponding liquidity period.
The annualized yield displayed for each Vault is an estimated value (Estimated APY), based on the past performance of the asset portfolio and market data. Actual returns will be affected by market volatility, dynamic asset allocation, and other factors. The Nest page also shows the actual yield over the past 7 days (Current APY) for users' reference and judgment.
Liquidity and Risk Considerations of the RWA Vault
Unlike traditional DeFi products that allow for instant redemption, there is a time delay for fund withdrawals in Nest Vault. Some Vaults support same-day redemptions, but most withdrawals require a wait of 7 to 10 days, depending on the liquidity characteristics of the underlying assets. This feature is not friendly for users who frequently adjust their portfolios or engage in short-term arbitrage.
Due to limited liquidity, investors must bear certain risks of capital lock-up. Nest provides compensation for this risk by issuing PLUME tokens as incentives. Participating in the incentive mechanism also requires locking up Royco tokens, which, while offering high returns, limits liquidity and flexibility.
From the perspective of the revenue structure, the Vault's earnings come from real-world stable cash flows, rather than relying on new funds or token price increases, which provides strong sustainability. For investors willing to accept a lock-up period and understand the operation rhythm of RWA, Nest offers a clear risk-return structure and a well-designed incentive mechanism for on-chain allocation.
Summary
Nest, as an attempt to combine RWA and DeFi, is exploring feasible pathways for on-chain investment in real assets. It provides a relatively compliant and liquid solution for the on-chainization of traditional assets, but finding a balance between asset security, liquidity, and yield stability remains a core challenge that this sector needs to continuously tackle in the future. The performance of Nest may offer valuable insights for the deep integration of RWAfi and DeFi, but its maturity and widespread application still need to be tested by the market.