Introduction to PureFi, a decentralized protocol for compliance
Welcome PureFi, the new project entering the Hacken Foundation.
We keep introducing innovative solutions, making the world a safer place and this time we are focusing on the DeFi world. New DeFi security solutions are highly demanded in the market and we’re sure we’ve found the project that can make a difference.
PureFi is the one-stop compliance protocol for decentralized finances developed by AMLBot in partnership with Hacken Foundation. The product will serve the needs of the DeFi market players by functioning as a full-cycle solution for crypto asset analytics and AML/KYC procedures.
The expertise of the team behind the Hacken Foundation allows us to assure you that this project has a great chance to become one of the most discussed innovative solutions for DeFi in 2021 and the coming years.
Don’t miss your chance to become a part of PureFi’s success story!
What is the value of DeFi for the end users?
The key purpose of DeFi is to create decentralized versions of widespread financial instruments such as loans, mortgages, derivatives, etc. The main feature of DeFi is the full control of an individual over his assets. DeFi replaces legacy and centralized institutions and, thus, makes finance more democratic for end users. At the core of DeFi lie blockchain and cryptocurrency technologies. DeFi allows users to remain anonymous and provides verification of payments as well as the record of asset ownership. As of May 2021, the total value of assets locked in DeFi amounted to $88 billions and this figure is likely to continue moving up.
How important are the new solutions for DeFi’s security?
Like all fast-growing technologies, security issues are still common in DeFi. Holders should be aware of smart contract, financial, and legal risks. Smart contracts remain vulnerable to hacks especially when their developers neglect the importance of independent security audits. Users are likely to experience financial losses due to scams. Currently, DeFi is widely used by criminal actors for money laundering purposes and this situation dramatically affects the image of decentralized exchanges among institutional market players.
PureFi brings The Great Solution to the industry
PureFi will connect to the AML providers through issuers and provide crypto assets analytics to protect liquidity pool users and white market players from “dirty money” risks. For example, the liquidity pool user will be able to avoid the risk of getting an illegal money trail using the Verified Credentials (VC) certificate with his full-fledged AML/KYC data.
Liquidity Pool User
1.1 The liquidity pool user specifies the liquidity pool smart contract address to the protocol and sends his or her coins to the PureFi smart contract.
1.2 The protocol analyzes the ML (money laundering) risks using in-built Issuers and stores this information to the IPFS as a JSON file containing details on the coin amount, transaction address, date, and AML risk score.
1.2.1 Result A: If the risk score is higher than a threshold, then the protocol will offer to refund money to the sender.
1.2.2 Result B: If the risk score is lower than the threshold, then a Verified Credentials (VC) certificate will be generated from the JSON file, and the coins will be automatically sent to the liquidity pool smart contract address.
The VC certificate can be customized individually. For example, the holder may specify personal information and a whitelist of addresses (public key) from which the data can be read. The whitelist can be updated at any time.
1.3 When withdrawing funds from the liquidity pool, the holder must call for the PureFi protocol smart contract. The protocol will link the outgoing funds to the VC certificate using the address of the liquidity pool smart contract, timestamps, and coins amount.
Liquidity pool operator
2.1 The liquidity pool operator accepts liquidity from holders through a PureFi smart contract.
2.2 Protocol measures money laundering (ML) risks of the inbound cash flow under Issuer’s supervision and, based on the threshold results, forwards coins to the liquidity pool or rejects the transaction.
2.2.3 If an incoming transaction links to the VC certificate, confirming the purity of the coins and identifying the sender, the liquidity operator can automatically send the coins to the liquidity pool. The same positive result occurs when VC confirms the information about the origin of funds.
Reading the Verified Credentials (VC) certificate, it is possible if the liquidity pool address is included in the whitelist of a particular VC certificate.
Hacken CEO Dyma Budorin provided a positive feedback on the idea behind the PureFi project: We all see the rapid development of DeFi technologies and it’s exceeding anyone’s expectations. But we also see that many institutional players are still afraid of entrusting their assets to decentralized platforms. We need to change this pattern. DeFi should become free of cyber crimes and money laundering and PureFi is the solution that can achieve this objective by bringing revolutionary changes to the industry.
PureFi founder Slava Demchuk shared his expectations on this project: The main idea behind PureFi is to bring real value to end users. DeFi should be the place where people achieve their objectives rather than fall victim to cybercriminals. I am looking forward to seeing PureFi’s launch. Technologies should serve people!
PureFi is the fourth project entering the Hacken Foundation and the second one for May month. We demonstrate a good pace while selecting only extremely high-quality solutions. And we will continue discovering new ideas to make the world a safer place. This great announcement proves the sustainability of our ecosystem.
The information on how to participate in PureFi Token (UFI) sale will be provided in our next publications.
So, track our future announcements and support PureFi in its fight for a more secure DeFi world!
About Hacken Foundation
The main objective of the Hacken Foundation is to give breakthrough crypto projects a chance to scale their solutions in the market. Only projects that bring visible value to the security of the crypto world and adhere to the principles of business ethics are allowed to offer their services on the Hacken Foundation platform. All projects pass a strict pre-approval procedure before entering the Foundation so that potential investors may be absolutely confident of the projects’ transparency and protection of their assets.
Hacken strives to see more projects entering our Foundation. We are focused on ensuring the organic growth of our community through mutually beneficial cooperation.
The Hacken Foundation gives a boost to innovative cybersecurity solutions by empowering the Hacken Ecosystem through HAI Tokenomics.
View more info about PureFi at:
Telegram Group: https://t.me/purefigroup
Follow us on our social channels:
Hacken Club Twitter: https://twitter.com/hackenclub
Hacken Club Telegram: https://t.me/hackenclub
Hacken Club Reddit: https://www.reddit.com/r/hacken/
Hacken Club Telegram Ru: https://t.me/hackenclub_ru
Hacken Website: https://hacken.io/
Hacken Foundation Website: https://hackenfoundation.com/