# Glossary

A quick-reference guide to terms you’ll encounter while using or exploring Nest.

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#### **AML Screening**

Automated wallet screening system that checks addresses against global sanction and money laundering lists. Enforced onchain by the Plume sequencer.

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#### **APY (Annual Percentage Yield)**

The expected yearly return on your deposit, expressed as a percentage. Nest vault APYs are estimates based on projected performance of underlying assets.

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#### **Asset**

A financial instrument held inside a Nest vault. Assets may include U.S. Treasuries, tokenized ETFs, private credit, or crypto-structured yield products.

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#### **BoringVault**

An open-source smart contract standard for non-custodial yield vaults. Used across all Nest vaults and audited by multiple firms.

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#### **Cicada Partners**

An institutional risk manager that provides tokenized risk assessments for assets included in Nest vaults.

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#### **DeFi (Decentralized Finance)**

A financial system built on public blockchains that operates without centralized intermediaries. Nest is a DeFi-native protocol.

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#### **ERC-20**

A widely used token standard on Ethereum and EVM-compatible chains. All Nest vault tokens follow this format.

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#### **Nucleus**

Nest’s infrastructure partner responsible for powering cross-chain vault operations and integrations.

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#### **pUSD (Plume USD)**

The stablecoin used for most deposits into Nest vaults. It is the native stablecoin of the Plume ecosystem.

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#### **Plume**

Chain ecosystem designed for real-world asset DeFi (RWAfi).

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#### **Redemption**

The process of withdrawing stablecoins by redeeming vault tokens. Some redemptions are instant; others may take several days based on asset liquidity.

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#### **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.

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#### **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.

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#### **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`.