Before I tell you how The Price PureFi saved the DeFi kingdom, here’s how it all started.
Once upon a time, in the distant realm of DeFi, there was a massive and explosive change. All the holders were happy since the Kingdom’s growth was driven by a massive influx of liquidity into the market.
During those happy times, anyone could go through a simple process of exchanging their money for a coin without completing any verifiable KYC / AML processes. Then invest the coins in a high potential project and, with your fingers crossed, watch the investment grow. In other words, holders could easily create wallets and start trading without disclosing any personal data.
DeFi’s realm was thriving because its technology could open up a huge amount of opportunity for honest holders, until one day the evil evil actors came and occupied the realm.
Some of the honest market players stopped trading altogether and the rest continued, but kept complaining about sleepless nights, wondering if their coins were “pure” enough. The pure blue sky was covered with large gray clouds.
Bad actors were the curse of the Kingdom because they served to launder âdirty moneyâ and systematically endangered good actors and their financial activities.
The Kingdom’s local police, called FAFT, could no longer recognize good actors from bad ones. DeFi’s realm was in complete chaos.
Even the good players who have added tangible value to rebuilding the global financial system could be approached and deprived of any additional DEX-related activity or providing liquidity to liquidity pools by the FATF.
Truth be told, the legends about evils like DeFi100 were horrible! About $ 32 million was taken away from investors just like that! Unfortunately, investors weren’t the only ones at high risk.
Holders unwillingly took the high risk of tracking down someone else’s âdirtyâ money once they decided to withdraw their assets.
The liquidity pool operators took responsibility for the funds that the pool held. The value of the product was completely demolished once it was no longer credible to honest owners. It was especially difficult to gain the trust of users when the product did not comply with government regulations on money laundering and KYC.
There was no way for DEX traders to rank the coins on their own. By keeping only the history of each transaction, no one could defend whether the purchase or sale was “clean”.
Prince PureFi, the one-step compliance protocol for decentralized finance, was developed by AMLbot as a project of Hacken. It aimed to provide a full cycle solution for crypto asset analysis and AML / KYC procedures in the DeFi market.
PureFi connects provides crypto asset analysis to protect users of the liquidity pool and honest market participants. Scan results are available through VC (Verifiable Credentials). Each VC certificate contains information about asset pricing, AML / KYC, and other metadata – so it can be used as a full-fledged AML / KYC check for any legal / validation issues.
The contents of the certificate are encrypted and available only from the list of public keys (white list). Whitelisted participants get certificate data with zero knowledge proof (ZK SNARK).
In this way, the VC certificate authorizes its owner to prove to the verifier that a statement is true without revealing any fact that excludes the validity of the statement.
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