Plume is a modular Layer 2 blockchain network built to support Real-World Asset Finance (RWAFi). It aims to connect traditional finance with decentralized finance (DeFi) by creating a compliant and efficient on-chain ecosystem for real-world assets (RWAs) such as real estate, credit, and commodities.
What is Plume Network (PLUME)? A Guide to the RWAfi Chain
Plume Network is the first full-stack modular Layer-1 solution...
Key features and technology
Plume's infrastructure is specifically designed to meet the unique needs of RWAs. It operates on a modular, Ethereum Virtual Machine (EVM)-compatible stack.
Core components
Arc (Tokenization Engine): This framework simplifies the process of bringing assets onto the blockchain. It includes compliance and regulatory requirements, like know-your-customer (KYC) and anti-money-laundering (AML) checks, directly in the asset creation process.
Smart Wallets (Passport): These wallets come with built-in compliance and custody features. They allow users to manage their tokenized assets and engage with DeFi protocols. Users can hold yield-generating RWAs and participate in DeFi strategies.
Nexus (Data Highway): This data layer channels off-chain, real-world data onto the blockchain. It enables integration of external data sources, allowing for real-time valuation and supporting various DeFi applications.
Modular architecture
Plume uses the Arbitrum Nitro stack to provide high scalability and low transaction fees. It employs Celestia for data availability, which lowers costs and boosts network efficiency. For privacy, Plume has added the Nightfall privacy protocol as a Layer 3 solution. This protocol uses zero-knowledge proofs to ensure compliant, confidential transactions for institutional users.
The Plume ecosystem
Plume is building a robust ecosystem around RWAFi.
Composability: By offering a secure and compliant platform, Plume enables tokenized RWAs to serve as building blocks within DeFi. This means assets like real estate or credit can act as collateral, be traded, and leveraged in yield-generating strategies.
Institutional partners: The network has drawn many projects and has formed partnerships with institutional players to expand the RWA ecosystem.
Liquidity: Plume enhances liquidity for tokenized RWAs through partnerships and DeFi integrations, which help minimize slippage and stabilize prices.
Use cases
The emphasis on RWAFi opens up various use cases:
- Fractional ownership of real estate and collectibles.
- Tokenized debt financing, including mortgages and corporate bonds.
- Commodities trading with tokenized assets like gold and agricultural products.
- Access to institutional strategies through yield vaults that offer exposure to asset classes like private credit and US Treasury bills.
