Glossary
Definitions of key terms in the Nest ecosystem and DeFi more broadly.
Glossary
A quick-reference guide to terms you’ll encounter while using or exploring Nest.
AML Screening
Automated wallet screening system that checks addresses against sanctions and money laundering lists. Arc deposits use the vault's compliance entrypoint.
APY (Annual Percentage Yield)
An annualized rate expressed as a percentage. Nest 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 Nest 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 Nest vaults and audited by multiple firms.
Cicada Partners
An institutional risk manager that provides tokenized risk assessments for assets included in Nest vaults.
DeFi (Decentralized Finance)
A financial system built on public blockchains that operates without centralized intermediaries. Nest is a DeFi-native protocol.
ERC-20
A widely used token standard on Ethereum and EVM-compatible chains. All Nest vault tokens follow this format.
Nucleus
Nest’s infrastructure partner responsible for powering cross-chain vault operations and integrations.
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 a supported deposit asset. Its redemption value changes as the vault generates yield. Examples across the protocol include nTBILL, nALPHA, and nOPAL. For Arc, check the Vault Directory to see which vault tokens have an Arc route.