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Understanding Plume Network: Counter-trend Surges 20%, Binance's Chosen RWA-exclusive L1

Frost

2025-03-18 13:12

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Editor's Note: This article was published on March 27, 2024. Approximately a year later, on March 17, 2025, Plume Network, as YZi Labs' first investment project in the RWA field for 2025, continued to advance the project. After a year of development, Plume bridged DeFi and TradFi, successfully establishing an EVM-compatible environment and taking a leading position in the RWAfi field.

Possibly influenced by the news of "YZi Labs Announces Investment in Plume Network," starting from the evening of the 17th at 18:00, the PLUME price saw a significant increase, with the market cap swiftly surging from $300 million to nearly $410 million, a remarkable 33.62% increase. Subsequently, after reaching a high point, there was a slight retracement, and the current price is $0.175.

Adoption of ERC-3643 Compliant with RWA Market Regulatory Environment

Although RWA's development is still in its early stages, its capitalization ranks sixth in the DeFi industry overall.

Research from The Block indicates that current RWA investment products (such as Ondo Finance OUSG, MatrixDock STBT (On-Chain Treasury Bond)) and institutional lending platforms like Maple Finance and Centrifuge have shown rapid TVL growth. This year, the trading volume of RWA tokens on DEXs has also reached a historical high, exceeding $2 billion, further highlighting the changing interest and demand for funds towards RWA.

Image Source: Dune Analytics

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

Among these, the ERC-3643 standard provides a set of open-source smart contracts that leverage a built-in decentralized identity system called ONCHAINID to ensure that only users meeting specific criteria can hold the token, and this standard can be maintained on permissionless blockchains. By using ERC-3643, asset issuers tokenizing their RWAs can access interfaces to set transfer restrictions, freeze and burn tokens, and force token transfers—key operations representing regulated RWA tokenization in the securities industry.

Image Source: ERC 3643 Official Website

What are the Features of Plume?

Plume is a modular L1 blockchain dedicated to Real World Assets (RWA). It tokenizes assets and integrates compliance providers directly into the chain. Its mission is to simplify the complex process of deploying RWA projects and provide an ecosystem for investors. Plume achieves composability of RWA through its DeFi applications and offers opportunities to engage with high-quality buyers to increase liquidity for all RWA assets.

Furthermore, the Plume Network offers a fully integrated and regulatory-compliant L1 solution designed specifically for RWA. In comparison to others in the market, its institutional and compliance integration is comprehensive and includes features such as KYC/KYB, AML/OFAC checks, custodians, account abstraction, on-chain arbitration, and transfer proxies.

Built on the Arbitrum Nitro Stack

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

The Arbitrum Nitro stack aims to maintain a high level of compatibility and consistency with Ethereum. However, due to a new opcode introduced by EIP-3855 in Solidity version 0.8.20 and included in the Ethereum Shanghai upgrade, which is not yet supported by the Arbitrum Nitro stack, contracts compiled on Solidity 0.8.20 or higher cannot be deployed on Plume.

Currently, the only workaround is to either switch the EVM target back to the previous Paris EVM version or set the Solidity compiler version to 0.8.19. Additionally, some common dependencies need to be downgraded. For example, in OpenZeppelin version 5.0.0, the Solidity compiler is already version 0.8.20, so the latest version compatible with Plume is OpenZeppelin 4.9.5.

On the other hand, compared to other chains, the Plume mainnet will make subtle modifications to the Arbitrum Nitro's state transition function. Specifically, Plume is optimizing its execution client to more efficiently process RWAs, ultimately reducing the gas costs 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 pattern registry contract as a pre-deploy, a feature of Optimism but not available in Arbitrum. This allows dapp developers to build applications that comply with identity verification and anti-money laundering requirements without spending a large amount of gas.

Using Celestia as the DA Layer

Celestia introduces an innovative modular Data Availability (DA) network, allowing anyone to easily create their own blockchain. Unlike traditional approaches, Celestia introduces a paradigm where various operations can unfold across different layers, eliminating the limitations of confining all content to a single blockchain.

By using Celestia as Plume's DA layer, Plume will reduce operational gas costs. By leveraging Celestia's cutting-edge data availability solution, Plume expects gas costs to decrease by 99.9%, providing lower gas fees for the numerous RWA and DeFi projects built in the Plume ecosystem. The cost of deploying projects on Plume in the future and the cost of user interaction will also be relatively low.

Furthermore, the collaboration with Celestia aligns with Plume's broad vision of nurturing a strong ecosystem where various RWA projects can coexist and unleash liquidity through a composable DeFi ecosystem.

How to Interact with Plume

Plume is currently deployed as an L1 on the Ethereum Sepolia testnet. Claim test tokens, participate in the Plume testnet, and complete bridge-related tasks for a chance to receive Plume points and eligibility for a lottery.

Access the Plume Testnet

First, deposit some SepoliaETH into your Sepolia wallet from the Alchemy Faucet or Infura Faucet to use as interaction gas fees.

Using MetaMask as an example, open the MetaMask extension, click the network selection button in the top left corner of the extension, and then click "Add Network".

Click here to copy the Plume Network Parameters, click "Save", and then click "Switch to Plume Testnet".

Finally, use the Plume Testnet Bridge to bridge SepoliaETH to Plume.

Claiming USDC Test Tokens

Users can acquire testnet USDC through the USDC faucet on the Plume Block Explorer. Connect your wallet to the Plume testnet, then click "Write" below "requestTokens" to receive 100,000 testnet USDC.

Checking Plume Testnet Balance

Users should now see ETH and USDC balances on the Plume testnet within their wallet. They can also check their wallet address in the Plume Block Explorer to view balances and recent transactions. Having a balance on the testnet allows for interaction with tasks.

Team Background

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

Among them, Chris Yin is the CEO of Plume, having served as a Partner at Scale Venture Partners from 2019 to 2023, VP of Product at Rainforest QA from 2017 to 2019, Director of Product at Coupa Software from 2013 to 2016, and founder of Xpenser in 2012, which was later acquired by Coupa after a year.

Teddy Pornprinya, Plume's Chief Business Officer, was a BD Manager at Binance in 2023, BD Manager at Swim.io from 2021 to 2023, and worked in venture capital at Coinbase Ventures in 2021.

As Plume's Chief Technology Officer, Eugene Y. Q. (eyqs) Shen was a Senior Software Engineer at dYdX in 2022 and a Software Engineer II at Robinhood Crypto from 2020 to 2021.

The team is currently in New York attending the DAS conference. If you are also in New York, consider taking the opportunity to meet and exchange ideas with them.