# How to Use Nest

You deposit stablecoins into a Nest 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 [Nest portal](http://app.nest.credit/). The protocol operates entirely on-chain and does not require custodial onboarding.

#### 2. Acquire pUSD

pUSD is the standard deposit asset across all Nest 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 Nest 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 Nest vault](https://app.nest.credit/vaults), 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](https://www.rooster-protocol.com/?chain=98866). 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](https://app.nest.credit/nest-treasury-vault), which has both atomic as well as same-day liquidity.

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### 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 - Nest never takes custody.                                                                                       |

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### AML Pre-Screening

While Nest 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](https://docs.nest.credit/security-and-compliance/geographic-restrictions).

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### Related Pages

* [Explore Available Vaults](https://app.nest.credit/)
* [Learn How Vault Liquidity Works](https://docs.nest.credit/about/liquidity-and-redemptions)
* [Understand the Assets Behind Vaults](https://docs.nest.credit/about/assets)