Nest Glossary

Discover and learn common and useful terms related to Nest.

Asset Originator

A licensed institution that sources and structures the underlying real-world assets (e.g., U.S. Treasuries, private credit) that go into a vault.

Audit (Smart Contract)

A third-party security review of Nest or partner vault infrastructure code, ensuring it works as intended and is free from critical vulnerabilities.

Custody

The act of holding or safeguarding assets. Nest itself is not a custodian — all vault tokens remain in the user’s wallet, and underlying assets are held by regulated vault operators or within smart contracts.

Liquidity Provider (LP)

An individual or entity that stakes stablecoins into a Nest vault (or related liquidity pool), receiving vault tokens in return. LPs take on market and yield risk in exchange for earning returns generated by the vault’s underlying assets.

Real-World Assets (RWAs)

An asset, usually yield-bearing, that exists in the traditional economy (e.g., bonds, loans, real estate) and is represented digitally onchain.

Tokenization

The process of converting rights to an asset into a digital token on a blockchain.

Vaults

A smart contract–powered structure that pools assets, issues vault tokens, and as a result distributes claims to yield exposure to token holders.

Nest

Vaults