On March 26, according to market information, the RWA concept generally rose. ONDO, the native token of Ondo Finance, the leader of the track, rose by more than 110% in a week and led the rise of the entire RWA protocols. The tokens of multiple projects continued to hit record highs.

Among them, POLYX (Polymesh) increased by 197.4 in a week; TOKEN (TokenFi) increased by 210.5 in a week; NXRA (AllianceBlock Nexera) increased by 129% in a week; GFI (Goldfinch) increased by 97.3% in 24 hours; and RIO (Realio Network) increased by 141.7 in a week %.

In the RWA track, Plume Network, a modular L2 blockchain dedicated to RWA, caught the attention of BlockBeats. At present, Plume network has not issued coins yet. It is deployed on the Ethereum Sepolia test network as L2. You can receive test tokens, participate in Plume’s test network, and complete tasks such as bridging to have the opportunity to receive airdrops.

Adopt ERC 3643, Complying with the RWA Market Regulatory Environment

Although the development of RWA is still in its early stages, its capital volume occupies sixth place in the overall ranking of the DeFi industry.

A report from research firm The Block shows that current RWA investment products such as Ondo Finance OUSG, MatrixDock STBT (on-chain vault bills), as well as institutional lending platforms Maple Finance and Centrifuge are seeing faster TVL growth. DEX’s RWA token trading volume also reached an all-time high this year, exceeding 2 billion, further highlighting changes in capital interest and demand for RWA.

Source: dune data

As the cryptocurrency market continues to mature, there is a realization that some token standards need to be adopted to meet specific needs related to RWA to comply with the current regulatory framework. According to the official documentation of Plume Network, the token standards it currently supports include ERC 20, ERC 721, ERC 1155, and ERC 3643.

Among them, the ERC 3643 standard provides a series of open source smart contracts that utilize a built-in decentralized identity system called ONCHAINID to ensure that only users who meet specific criteria can hold tokens and can maintain this standard on a permissionless blockchain. Issuers of assets that tokenize their RWA using ERC-3643 have access to interfaces for setting transfer limits, freezing tokens, burning tokens, and forcing token transfers, which are key operations for tokenized representations of RWA regulated by securities agencies.

Source: ERC 3643 official website

What’s special about Plume?

Plume is a modular L2 blockchain dedicated to RWA that integrates asset tokenization and compliance providers directly into the chain. Its mission is to simplify the complex process of RWA project deployment and provide investors with one blockchain ecosystem. Plume enables RWA composability through its DeFi application and provides access to high-quality buyers to increase liquidity for all RWA assets.

In addition, Plume Network provides a fully integrated and regulatory-compliant L2 solution designed specifically for RWA. Judging from the current market, its integrated system and compliance supervision methods are relatively comprehensive, including KYC/KYB, AML/OFAC inspection, custody Functions such as person and account abstraction, on-chain arbitration and transfer agency.

Built on the Arbitrum Nitro stack

Plume is built on the Arbitrum Nitro stack, which also powers Arbitrum One and Arbitrum Nova.

The Arbitrum Nitro stack is designed to maintain a high degree of compatibility and consistency with Ethereum, but since the Solidity 0.8.20 version contains new opcodes introduced by EIP-3855 and included in the Ethereum Shanghai upgrade, the Arbitrum Nitro stack is not yet available. This opcode is supported, so contracts compiled on Shanghai EVM 0.8.20 or later cannot be deployed to Plume.

Currently it is only possible to change the EVM target to a previous Paris EVM version or set the Solidity compiler version to 0.8.19. At the same time, some common dependencies must also be downgraded. For example, in OpenZeppelin 5.0.0 version, its Solidity compiler is already version 0.8.20, so the latest version that Plume is compatible with can only be OpenZeppelin 4.9.5 version.

On the other hand, the Plume mainnet will have slight modifications to Arbitrum Nitro’s state transition function compared to other chains. Specifically, Plume is optimizing execution clients to perform processing RWA more efficiently and ultimately reduce the gas cost of these operations.

The first function to reduce gas costs is a function that obtains proof from the Ethereum Attestation Service (EAS). Plume is deploying the EAS proof and schema registry contracts as pre-deployments. This is a feature of Optimism but not available in Arbitrum. This allows dapp developers to build applications that comply with authentication and anti-money laundering requirements without spending large amounts of gas.

Use Celestia as a DA layer

Celestia introduces an innovative modular Data Availability (DA) network, making it easy for anyone to create their own blockchain. Unlike traditional approaches, Celestia introduces a paradigm where various operations can be unfolded on different layers, removing the limitations of confining everything to a single blockchain.

By using Celestia as Plume’s DA layer, Plume will reduce gas costs for operations. By leveraging Celestia’s cutting-edge data availability solution, Plume expects to reduce gas costs by 99.9%, which will provide lower gas fees for the many RWA and DeFi projects built in the Plume ecosystem, and the cost of deploying projects on Plume in the future to interact with users will also be lower.

Additionally, the partnership with Celestia aligns with Plume’s broader vision to foster a robust ecosystem where diverse RWA projects can coexist and unlock liquidity through a composable DeFi ecosystem.

How to Interact with Plume

Currently, Plume network has not issued coins, but you can participate in the Empower BWB points program. Plume is currently deployed as L2 on the Ethereum Sepolia test network. Receiving test tokens, participating in Plume’s test network, and completing tasks such as bridging will give you a chance to obtain Plume points and lottery qualifications.

Connect to Plume test network

First, Deposit some SepoliaETH from Alchemy Faucet or Infura faucet into the Sepolia wallet as an interaction gas fee.

Taking MetaMask as an example, open the MetaMask extension, click the network selection button in the upper left corner of the extension, and then click “Add Network”.

Click here to copy Plume network parameters, click “Save”, and then click “Switch to Plume Testnet”.

Finally, use the Plume test bridge to bridge SepoliaETH to Plume.

Get USDC test tokens

Users can get testnet USDC via USDC faucet on Plume block explorer. Use your wallet to connect to the Plume testnet, then click “Write” under “requestTokens” to get 100,000 testnet USDC.

Check Plume testnet balance

Users should now be able to see their ETH and USDC balances on the Plume testnet within their wallet. Wallet addresses can also be checked in the Plume block explorer to view balances and recent transactions. If you have a balance on the test network, you can perform interactive tasks.

The Team

The Plume team is comprised of professionals with extensive backgrounds in traditional finance, cryptocurrency and RWA, ensuring a comprehensive approach to Plume’s success. Team members come from Coinbase, Robinhood, LayerZero, Binance, Galaxy Digital, Scale Venture Partners, dYdX and several other industry leaders.

Among them, Chris Yin is the CEO of Plume. From 2019 to 2023, he served as the head of Scale Venture Partners. From 2017 to 2019, he served as the vice president of product of Rainforest QA. From 2013 to 2016, he served as the product director of Coupa Software. From 2012 to 2013, he founded Xpenser, which was acquired by Coupa a year later.

Teddy Pornprinya, the chief commercial officer of Plume, served as the BD director at Binance in 2023, the BD director of Swim.io from 2021 to 2023, and worked in venture capital at Coinbase Ventures in 2021.

Eugene Y. Q. (eyqs) Shen, the CTO of Plume, held the position of Senior Software Engineer at dYdX in 2022, and worked as a Secondary Software Engineer at Robinhood Crypto from 2020 to 2021.

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