Plume launched FACTOR, a limited-capacity vault within its Vaults platform, developed in partnership with Tradeable and Deep Ocean Partners.
The product offers onchain exposure to a diversified working capital finance portfolio, which pools invoice factoring, revolving credit lines, and other short-term asset-backed loans.
Users deposit stablecoins and receive a token representing their economic participation in the portfolio. The target return is over 14% net APY, with weekly liquidity sustained by three mechanisms: a liquid asset reserve, periodic invoice collections, and an agreement requiring Deep Ocean Partners to repurchase part of the exposure when necessary.
The initial portfolio includes four types of credit facilities, backed primarily by investment-grade obligations. The yield does not stem from taking on greater credit risk, but rather from the short-term nature of the operations and the ability to redeploy capital multiple times per year.
FACTOR aims to address the financing gap for companies that need between $2 million and $20 million in working capital, a segment that, according to Plume, is often underserved by banks, fintechs, and private credit funds. The U.S. factoring market moves approximately $170 billion per year.
The product is capacity-limited during its launch, and the 14%+ APY represents a target, not a guarantee.
Source: https://www.plume.org/blog/plume-introduces-factor-a-book-of-working-capital-finance-onchain
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