PureFi Partners With Panther To Supercharge Compliant PriFi
We’re delighted to announce our partnership with Panther, approved by a significant majority of the DAO, to integrate our compliance solution into their unique Zero-Knowledge layer and together drive a compliant crypto privacy revolution.
In the dynamic realm of Web3, PureFi is positioned crucially, tirelessly merging the elements of compliance and privacy. As digital environments expand, ensuring that dApps can seamlessly integrate into regulatory frameworks without undermining decentralization or individual anonymity is of utmost importance.
Our commitment is evident not only in our core values but also in the quality of our partnerships. Today, we’re excited to unveil our collaboration with Panther Protocol, a pioneering project recognized for its innovative use of zero-knowledge technology. They’re at the forefront of blending on-chain privacy with regulatory adherence in the world of DeFi.
Our path to this partnership wasn’t solitary. The Panther community fervently backed it, culminating in a DAO vote where a staggering 100% supported integrating PureFi as a compliance provider. This underscores both our aligned vision and a community’s robust desire for a DeFi sphere that marries privacy with compliance.
Our alliance with Panther Protocol amplifies our impact, channeling our expertise into platforms aligned with Panther’s principles. Together, we’re not merely envisioning the future of Web3 — we’re actually building it.
🔎 What is Panther
Panther is a cross-protocol layer that uses zero-knowledge technology to build DeFi solutions that meet regulatory requirements and satisfy users’ on-chain privacy needs.
The goal of Panther is to provide seamless access to DeFi and create a cross-chain supported architecture that serves multiple use cases.
Users access Panther by depositing assets in Multi-Assed Shielded Pools (MASPs). Deposited assets are collateralised in a Vault smart contract, which means they gain access to the corresponding zAssets (1:1 collateralised “shielded” versions of their tokens for use within Panther).
zAssets open up various possibilities for users, who can send, swap, receive and pay with them. Internal OTC trading is possible via an atomic swap mechanism called zTrade. Shielded pools exist in different chains (EVM compatible only in the first version), connected by zBridges.
Most interestingly, users can also interact directly with existing DeFi and NFT platforms via DeFi Adaptors and associated plugins.
⚙️ Integration Details
Panther is designed to be a revolutionary privacy solution for everyday users, something that has long been the preserve of privacy enthusiasts due to complicated UX and unfortunate use by criminals who have continued to shed a bad light on this fundamental right.
Privacy is normal, and as privacy maximalists ourselves, our mission has always been to make PureFi as decentralized and privacy-preserving as possible by pioneering the use of technologies such as Verifiable Credentials and Zero Knowledge Proofs.
Panther has successfully integrated our entire framework, which includes both AML Risk Score (Wallet Screening) and Decentralized KYC.
This ensures that bad actors such as human traffickers, hackers or drug dealers are automatically rejected by the smart contracts, while fully preserving the privacy and user experience of normal users.
By becoming compliant, Panther can prevent the application and its users from being sanctioned by governments, as in the case of Tornado Cash, and normalise the use of privacy tools by completely removing malicious actors from the equation, which will ultimately lead to a more private DeFi ecosystem and a better experience for everyone.
We’ve been following the SSI and ZK paradigm since our inception, but in close collaboration with Panther, we’ve developed a brand new mechanism that eliminates the need to publish any data on-chain, with zero footprint, ensuring that no one can find out that you’ve been verified by any provider.
Our protocol is designed to be completely blockchain agnostic, so we can deploy it on any blockchain that Panther deploys on, ensuring leading compliance protection everywhere.
This goes hand in hand with the development of our own blockchain monitoring solution, which will utilize both our own extensive data sources of malicious addresses and a decentralized system that allows anyone to contribute and vote permissively.
Panther aims to maintain neutrality by integrating compliance vendors that accept multiple types of verification, so-called “multi-compliance vendors”, which allow users to choose from different compliance vendors while maintaining a decentralized approach.
This share the same vision as PureFi, which remains the only provider of its kind on the market, making it a perfect fit for Panther.
Within Panther’s solution, compliance providers need to be able to process users’ data without learning the protocol, prove a user’s ownership of their wallet and provide them with a zero-knowledge proof of the validity of their statements, with PureFi covering all requirements:
- Decentralized KYC: Users can undertake verification via a provider of their preference, which the protocol recognizes through a Zero-Knowledge Attestation confirming the verification’s success.
- Wallet Screening (AML Risk Score): Each user’s wallet undergoes a thorough scan to detect any signs of illicit activities or any inclusion in sanctions lists. Following the scan, a Zero-Knowledge Attestation of the AML Risk Score is generated and forwarded to the smart contracts that assess if the provided score meets the predetermined threshold.
- Native Compliance Fee: Users cover the fee as part of the transaction cost in Panther’s native token, ZKP. Once collected, the revenue will then be distributed, with a portion used to purchase UFI and split between the Treasury and the Foundation for subsequent applications.
For the first official tier (“Tier 1000”), managed by the Panther DAO, the team has opted for a simplified KYC verification (Name, E-mail & Country) and a maximum withdrawal limit of $1,000.
As with all other tiers, this Tier will use PureFi’s Wallet Screening, which is built directly into the smart contracts and automatically rejects any assets from malicious actors, while fully preserving the privacy and user experience of normal users.
While ensuring that even in the very unlikely situation where the malicious actor is not flagged by any of the data providers used by the respective Tiers at the time of deposit, it will be possible to retrospectively block the funds within the pools to ensure that the user is unable to withdraw the funds from Panther, making its usage impossible for malicious actors.
Exclusively for Panther, we’ve designed and developed a 3-tier compliance system that automatically adapts to the needs of each Tier, with various security levels of KYC and KYB verification to ensure it meets even the stringest needs of institutions joining and integrating Panther.
📪 Closing Remarks
This collaboration is more than an integration; it marks the beginning of a transformative expedition to revolutionise the Web3 domain. Together, we envision a DeFi realm where legitimate users thrive and bad actors have no place.
This partnership also underscores the esteem in which PureFi’s decentralised compliance solutions are held, even by those who are dedicated to creating tools for committed privacy enthusiasts.
As we commence our journey with Panther, remember that this is just the beginning, and we’re thrilled to have you with us as we navigate the years to come.
About PureFi Protocol
PureFi Protocol allows dApps to fully comply with local and global regulations while preserving decentralization and user anonymity.
Developed by AMLBot in partnership with Hacken Foundation to provide a full-cycle solution for crypto asset analytics and AML/KYC procedures for the Web3 infrastructure.
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