HOME Deep Dive

HOME (vault token ticker: nvHOME) is a residential housing credit vault backed by a portfolio of U.S. residential housing loans. It will launch with home equity lines of credit (HELOCs) originated by Figure Technology Solutions and its partners, with other U.S. residential credit assets such as DSCR and RTL loans expected to be added after launch.

The portfolio is actively managed by Figure Investment Advisors LLC, an SEC-registered investment advisor, with underlying assets sourced through Figure Connect, the loan marketplace operated by Figure Technology Solutions (Nasdaq: FIGR). HOME has a target policy rate that accrues into the token’s value, while a separate equity tranche is designed to absorb potential portfolio losses before they reach nvHOME holders. As a composable ERC-20, it integrates seamlessly into DeFi strategies, users can hold it in their wallet or deploy it across DeFi while yield keeps compounding.

Quick Facts

• Vault name: HOME

• Vault token ticker: nvHOME

• Target policy rate: 7.00% APY, accruing directly into the token's value

• Minimum deposit: 1 USDC

• Supported chains: Ethereum

• Vault token standard: ERC-20

• Launch portfolio: HELOCs, plus a YLDS liquidity sleeve (target 5% of TVL)

• Future eligible assets: Other U.S. residential housing loans such as DSCR and RTL loans are expected to be added after launch

• Launch vault cap: 25M

• First-loss buffer: An equity tranche targeted at approximately 5% of the vault cap

• Liquidity options: 24/7 minting and withdrawals on NUVA, as well as swaps on decentralized exchanges (DEXs).

• Withdrawal processing time: Typically processed within 3 U.S. business days.

• Asset issuer: Figure Technology Solutions and its partners

• Portfolio manager: Figure Investment Advisors LLC

What are HELOCs, DSCR and RTL home loans?

HOME will hold HELOCs sourced via Figure Connect at launch. Over time, the portfolio is expected to expand into other U.S. residential housing loans such as DSCR and RTL loans. The underlying loans are digitally native assets recorded on Provenance Blockchain. Figure's infrastructure records the loan lifecycle onchain, allowing loan-level information to be tracked through origination, funding, sale and securitization.

HELOC | Home Equity Lines of Credit

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by the equity in a borrower's home. It allows homeowners to borrow against the equity they have built up in their property without refinancing their primary mortgage.

• Market size: The U.S. has approximately $35 trillion in home equity, with more than $420 billion in HELOC balances outstanding as of 1H 2025.

• Collateral Profile: HELOCs are secured by the home equity of the loanee’s residential real estate property. Underwriting typically considers borrower credit quality (FICO), combined loan-to-value (CLTV) and debt-to-income (DTI).

• Proven at Scale: Figure is the largest non-bank HELOC originator in the U.S. and has originated more than $28 billion in HELOCs since 2018. Figure reports cumulative losses below 1%.

Every HELOC acquired for HOME must fit within the portfolio's eligibility criteria:

These are portfolio-level eligibility and concentration criteria for HOME's HELOC allocation, rather than the general consumer eligibility criteria for every HELOC Figure originates.

DSCR | Debt-Service-Coverage-Ratio Loans

DSCR loans finance income-generating rental properties. Instead of qualifying a loan primarily on a borrower's personal income, DSCR underwriting focuses on whether the property's rental income can cover the debt service.

DSCR loans are expected to become part of HOME's broader U.S. residential-credit portfolio after launch. HOME-specific eligibility criteria for DSCR assets will apply before these loans are added to the vault.

RTL | Residential Transition Loans

Residential Transition Loans (RTLs), sometimes referred to as bridge or fix-and-flip loans, provide short-term financing for the purchase and renovation of residential properties, typically with repayment through sale or refinancing.

RTLs are also expected to become an eligible HOME asset after launch. Their shorter duration can add a different residential-credit profile to the portfolio once they are introduced. HOME-specific eligibility criteria will apply before RTL assets are added to the vault.

How Is HOME Composed and Managed?

At launch, HOME's TVL will be deployed primarily in HELOCs. Approximately 5% of HOME's TVL is targeted to be held in YLDS as a liquidity sleeve. Because this sleeve sits within HOME's TVL, it can be converted to USDC through Figure Markets by the vault to facilitate smaller redemptions without selling loans.

Separate from HOME's TVL, the structure includes a first-loss equity tranche targeted at approximately 5% of the vault cap. This is additional capital designed to absorb potential portfolio losses before they reach nvHOME holders. In other words, as long as the equity tranche exists, nvHOME token holders can expect the stated policy rate to accrue on the token. The tranche is funded through excess spread, NUVA capital and external fundraising.

Figure Investment Advisors LLC actively manages the portfolio using a screen, construct and monitor process:

1. Screen: Every HELOC is screened against HOME's published buybox before it can enter the portfolio.

2. Construct: Qualifying loans are combined for duration profile, portfolio mix and diversification.

3. Monitor: Loan-level performance is tracked live, with the portfolio adjusted when needed.

4. Manage liquidity: The YLDS sleeve supports smaller redemptions, while whole loans can be sold through Figure Connect or OTC channels when additional liquidity is required.

5. Maintain onchain visibility: HOME's underlying loans are recorded on Provenance Blockchain, providing loan-level transparency into the assets backing the vault.

Users deposit USDC into HOME on Ethereum and receive nvHOME tokens. Portfolio yield then accrues inside the vault, which is reflected in the nvHOME token’s price.

HOME’s Yield Mechanics

nvHOME does not pay yield as a separate cash or stablecoin distribution. Instead, HOME's NAV is designed to accrue continuously at the target policy rate, which currently targets at 7.00% APY and resets monthly. Because nvHOME is an accrual token, this NAV accrual is reflected in the value of the nvHOME token.

All yield generated by the HOME vault accrues inside the vault in a defined order:

1. HOME NAV accrual: Portfolio yield first supports HOME's NAV accruing at the target policy rate.

2. Management Fees: Figure Investment Advisors LLC and NUVA fees are paid.

3. Excess spread: Portfolio yield remaining after the target policy rate and fees accrues to the first-loss equity tranche

The Fixed Policy Rate

The policy rate is a fixed rate set by NUVA and the portfolio manager, and resets monthly. nvHOME token holders can expect the rate to hold for the month once the rate is published. The yield will accrue continuously (per block) into the nvHOME token price.

The First-Loss Equity Tranche

HOME includes a first-loss equity tranche targeted at approximately 5% of the vault cap. It is designed to absorb portfolio losses before they reach nvHOME holders. In other words, as long as the equity tranche exists, nvHOME token holders can expect the token to accrue the stated policy rate.

The easiest way to think about the structure is as two separate layers:

• HOME holder capital: HOME's TVL comes from holder deposits. At launch, the target asset mix is approximately 95% whole loans and 5% YLDS, with the YLDS sleeve supporting liquidity.

• First-loss capital: Separate from that TVL, an equity tranche is targeted at approximately 5% of the vault cap. It is funded through excess spread, NUVA capital and external fundraising.

How Do Liquidity and Redemptions Work?

For nvHOME holders, there are two ways to access liquidity:

• Withdraw on NUVA: HOME withdrawals can be initiated 24/7 and are typically processed within 3 U.S. business days.

• Secondary DEX: HOME will have HOME/USDC secondary liquidity soon after launch.

Behind NUVA withdrawals, the vault manages liquidity through separate mechanisms:

• YLDS liquidity sleeve: Approximately 5% of HOME's TVL is targeted to be held in YLDS. YLDS can be redeemed to USDC through Figure Markets by the vault, allowing smaller redemptions to be handled without selling loans.

• Whole-loan sales: For larger outflows, the vault can sell whole loans through Figure Connect or OTC channels, with a window of up to 3 days.

Onchain Transparency

HOME combines vault-level Proof of Reserves with loan-level transparency from Figure's onchain infrastructure.

• At the vault level, Proof of Reserves provides visibility into the assets backing HOME.

• At the underlying asset level, loan-level data is available onchain 24/7. Figure Investment Advisors LLC uses this information to screen and monitor the portfolio, with metrics including FICO, loan-to-value, debt-to-income, gross coupon and delinquency status, as well as loan age, term, lien balances, property information and repayment history.

Why HOME?

HOME brings a private credit strategy that was previously largely reserved for institutional allocators into a permissionless, composable onchain format:

• Institutional-grade private credit, accessible from 1 USDC: Direct access to assets like these has traditionally required institutional relationships, high minimums and lengthy subscription processes. HOME provides permissionless access starting from 1 USDC.

• No lockups: Traditional private credit funds typically commit capital for years, with quarterly redemption windows at best. HOME has no mandatory holding period. Withdrawals can be initiated 24/7 on NUVA and are typically processed within 3 U.S. business days.

• Diversified by design: HOME launches with HELOCs, along with other U.S. residential-credit assets such as DSCR and RTL expected to be added after launch, broadening the portfolio across different residential-credit profiles and durations.

• Built-in first-loss buffer: A separate equity tranche targeted at approximately 5% of vault cap is designed to absorb potential portfolio losses before they reach nvHOME holders.

• Actively managed residential credit: Figure Investment Advisors LLC, an SEC-registered investment advisor, screens, constructs and continuously monitors the portfolio, giving nvHOME holders access to professionally managed residential-credit exposure without having to manage the loans themselves.

• Multiple liquidity pathways: nvHOME holders can withdraw through NUVA or find liquidity on decentralized exchanges. Behind NUVA withdrawals, the vault uses a YLDS liquidity sleeve and, when needed, whole-loan sales through Figure Connect or OTC channels.

• Onchain transparency: HOME combines vault-level Proof of Reserves with 24/7 loan-level data recorded on Provenance Blockchain.

• Composable ERC-20 token: nvHOME can be transferred onchain and is designed to be used across DeFi applications as integrations become available, including lending, collateral and liquidity strategies.

What Are the Main Risks?

The market value of the loans could fall if interest rates rise sharply. Mitigations include:

• The buybox includes a maximum loan tenor.

• The weighted-average life of the portfolio is managed by Figure Investment Advisors LLC.

• The first-loss equity tranche absorbs mark-to-market losses before they reach nvHOME holders.

Borrowers could default if they fail to repay their loans. Mitigations include:

• Every loan is screened against the published buybox, including a weighted-average FICO target of at least 735.

• Figure applies 28-point automated underwriting with no manual exceptions.

• The first-loss equity tranche absorbs default losses before they reach nvHOME holders.

• Figure reports cumulative losses below 1% across more than $28 billion of originations since 2018.

An unexpected surge in redemptions beyond readily available liquidity could require loans to be sold on an accelerated timeline, potentially at a discount. Mitigations include:

• Underlying loans can be sold through Figure Connect or OTC channels.

• HOME's three-business-day redemption timeframe allows time for orderly loan sales.

• The first-loss equity tranche absorbs sale-discount losses before they reach nvHOME holders.

Vault contracts, oracles or integrated protocols may contain bugs or be exploited, and contract keys may be compromised. Mitigations include:

• Independent smart-contract audits before launch and an ongoing bug-bounty program.

• Real-time transaction monitoring across vault operations via Hypernative.

• 6-of-9 multisig controls and a 48-hour timelock on contract upgrades.

How Does HOME Compare to nvPRIME?

HOME and nvPRIME are complementary ways to access yield from onchain home lending, but they work differently. nvPRIME holds PRIME, which provides financing-style exposure through short-term repurchase agreements to Figure secured against a pool of residential housing loans. HOME provides direct exposure to an actively managed portfolio of residential housing loans.

FAQs About HOME

What is the difference between HOME and nvHOME?

HOME is the name of the vault. nvHOME is the ticker of the vault token. When you deposit USDC into the HOME vault, you receive nvHOME tokens, representing your proportional share of the vault.

What Is Figure Investment Advisors LLC's Role?

Figure Investment Advisors LLC actively manages HOME's portfolio. Every loan is screened against the applicable buybox, qualifying loans are combined for duration profile, mix and diversification, and loan-level performance is monitored on an ongoing basis so the portfolio can be adjusted when needed.

How Are the Loans Sourced?

HOME will launch with HELOCs originated by Figure Technology Solutions and its partners. Figure's onchain infrastructure and Figure Connect support the sourcing and transfer of these whole loans. Other U.S. residential-credit assets such as DSCR and RTL loans are expected to be added after launch. Figure Investment Advisors LLC manages the sourcing of the loans.

How Does the Yield Accrue?

HOME does not pay yield as a separate distribution. Its NAV is designed to accrue continuously at the target policy rate, which is currently 7.00% APY and resets monthly. Because nvHOME is an accrual token, that yield is reflected in the token's price. Within the vault, portfolio yield first supports this HOME NAV accrual. The vault then charges its management fees, and remaining portfolio yield accrues to the first-loss equity tranche.

What Is the First-Loss Equity Tranche?

The first-loss equity tranche is a separate layer of capital targeted at approximately 5% of the vault cap. It is designed to absorb portfolio losses before they reach nvHOME holders.

Is the YLDS Liquidity Sleeve the Same as the First-Loss Equity Tranche?

No. They are separate parts of the structure and serve different purposes.

The YLDS liquidity sleeve sits within HOME's TVL. Approximately 5% of nvHOME holder capital is targeted to be held in YLDS so smaller redemptions can be supported without selling whole loans.

The first-loss equity tranche sits on top of HOME's TVL. It is separate capital, targeted at approximately 5% of the vault cap, and is designed to absorb potential portfolio losses before they reach nvnvHOME holders.

How Does Onchain Transparency Work?

At the vault level, HOME uses Proof of Reserves to provide visibility into the assets backing the vault. At the loan level, Figure Investment Advisors LLC can monitor data recorded on Provenance Blockchain in real time, including credit metrics, loan characteristics and performance. This provides greater transparency into the assets backing HOME than periodic portfolio reporting alone.

How Do Withdrawals Work?

The YLDS liquidity sleeve can support smaller redemptions without selling loans. For larger outflows, the vault can sell whole loans through Figure Connect or OTC channels. HOME's three-business-day processing window allows time for those sales to take place in an orderly way.

nvHOME holders can also access secondary liquidity through supported DEXs, which is separate from the vault redemption process.