Shyft Network Partners With Polkastarter To Launch a Global Whitelisting Solution For Token Swaps and Compliant Liquidity Pools
Bridgetown, Barbados — We are very excited to announce our partnership with Polkastarter, the permissionless DEX built for cross-chain token pools and auctions, to provide an end-to-end global whitelisting solution for pool creators, and to provide new opt-in compliance primitives for institutional capital formation and compliant DeFi offers. With this integration, Polkastarter will be able to provide every pool creator with the option of activating a mandatory and fully compliant KYC process.
Polkastarter is committed to bringing fair and secure token sales and swaps into a decentralized, permissionless network. One of their biggest use cases is providing new projects and startups with a platform to raise funds in a decentralized environment; in some cases, these projects will want to whitelist and KYC users.
“It’s very important to give the right tools to projects who want to use Polkastarter to raise funds in a legally compliant way. Adding an optional KYC feature, powered by Shyft Network, is key to guaranteeing that projects can raise money in a legal and sustainable manner.” — Daniel Stockhaus, Polkastarter CEO
The goal of the partnership is to provide Polkastarter’s users with an opt-in regulatory compliant feature. The platform’s rich set of tools already allow projects to securely raise funds in a decentralized manner; with the entry of institutional capital into the DeFi arena, comes the need for regulatory compliant primitives in liquidity pools. This, however, doesn’t mean that all projects that raise funds on Polkastarter’s platform will have to conduct know-your-customer (KYC) procedures, just those that wish to opt-in and offer a compliant product to more regulated capital markets.
Among the tools that can be built on Shyft Network, two stand out:
- Whitelisted addresses. A whitelist is a list of items/IP addresses that are granted access to a certain system or protocol. A whitelisted address effectively says: I know this person/entity and their KYC documents have been verified, enabling the user to participate in multiple projects without having to repeat KYC processes, and
- AML and GDPR compliant systems. Institutional capital markets are strictly regulated and supervised by local and international regulatory bodies; the goal is to prevent money laundering and financing of terrorist operations (AML). Through Shyft Network’s attestation framework, projects can verify and comply with existing AML regulatory frameworks and attract institutional capital, while protecting user’s privacy by not requiring them to create copies of their personal-identifiable information.
“Institutional capital formation will seek out projects with strong compliance primitives; by integrating with Shyft Network, Polkastarter can offer DeFi offers the option to participate in this new stage of crypto adoption. Legal requirements are here to stay and we believe there’s a massive opportunity for compliant DeFi.” — Juan Aja Aguinaco, Shyft Network Co-Founder
We expect that this integration will be fully ready by early 2021.
About Polkastarter
Polkastarter is a permissionless DEX built for cross-chain token pools and auctions, enabling projects to raise capital on a decentralized and interoperable environment based on Polkadot.
With Polkastarter, decentralized projects will be able to raise and exchange capital cheap and fast. Users will be able to participate in a secure and compliant environment and to use assets that go way beyond the current ERC20 standard.
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About Shyft Network
Shyft Network is a public protocol designed to aggregate and embed trust, validation and discoverability into data stored on public and private ecosystems, and facilitate information transfer between permissioned and permissionless networks. By incentivizing individuals and enterprises to work together, Shyft Network allows for the layering of context on top of data, turning raw data into meaningful information.
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