Purefi Ico is the only DeFi AML protocol for cryptocurrency onboarding. Developed by AMLBot in partnership with Hacken Foundation it aims to provide a full-cycle solution for cryptoasset analytics and AML/KYC procedures on the DeFi market. PureFi within a set of smart contracts will connect KYC/AML providers with DeFi users and Dexs/Defi projects in order to provide cryptoassets analytics and protect honest DeFi 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 Verifiable Credentials certificate with his full-fledged AML/KYC data.
PureFi will be a cross-chain protocol based on the latest industry standards for Ethereum, BSC, Polkadot, Cosmos, and Casper Labs. Moreover, PureFi would not use information from one KYC/AML data provider, instead, they will be an open market for verified providers delivering ML analysis to DeFi market players.
Since the fast growth of DeFi and DEXs has triggered huge attention in terms of Money Laundering and Terrorist Financing (ML/TF) risks, the lack of KYC and AML procedures became a crucial problem.
This is easily explained by the following significant factors:
DEXs are based on blockchains, so they do not rely on specific jurisdictions or regulations;
DEXs do not have access to users’ assets and are not performing AML/KYC verification on them;
DEXs are in a grey area legally; some people contend that the DEXs are decentralized and therefore can not be governed, while others argue for a strictly defined legal system.
Liquidity pool users (liquidity providers)
Purefi Ico Users supply their liquidity to the pool and when they withdraw their funds back, they automatically face the risk of getting “dirty” assets from illegal market players who use this opportunity to launder money.
Liquidity pools operators
Liquidity pool operators are interested in protecting themselves (and their users) from “dirty” funds. Some of them want their products to be more credible and adapt to comply with money laundering and governmental KYC regulation. As well, liquidity pool operators (especially who operate in regulated areas) are interested in working with verified counterparties and traditional financial organizations and yet being fully decentralized.
PureFi protocol provides the analysis of crypto wallets and transactions via AML databases in a form of Certificates based on the Verifiable Credentials standard – a machine readable by-default presentation of the data. Each Certificate contains information about asset price, AML/KYC and other metadata – so it can be used as a full-fledged AML/KYC verification for any legal/validation purposes.
Verifiable Credentials format enables for selective disclosure protocol usage thus enabling credentials holders to security share the minimum required amount of data with validators. PureFi will also utilise a Zero Knowledge based approach to generate secure data proofs capable of being validated with on-chain contracts. This provides users with the unique opportunity of receiving a PureFi Certificate and getting it validated on-chain without any third parties.
How PureFi protocol works
Purefi Ico protocol makes use of 3 general types of users:
Liquidity Pool Users (LP Users) – users that wish to put their coins into Liquidity Pool and have to prove to Liquidity Pool Operators that their funds are clear.
Liquidity Pool Operators (LP Operators) – users that control and operate Liquidity Pools, willing to take Liquidity (coins) from LP users, but want to be sure that dirty assets will not pass into their pools.
Issuers – users (rather companies or enterprises) that are focused on monitoring dirty crypto and can be a trusted party between LP Users and LP Operators that both will rely on when taking decisions within KYC/AML procedures.
PUREFI token (UFI)
PUREFI token (UFI) is the ERC20 token minted on the Ethereum blockchain and Binance Smart Chain (BSC) that empowers the PUREFI protocol. The key utility function of UFI is to provide access to PureFi services, to enable the circulation within PureFi protocol, receive new oracles and protocol updates, as well as enable cryptoasset analytics and identity verification.
Service usage models
There are four levels of service models based on the capacity a client would need PureFi services. In all models PureFi accepts most major cryptocurrencies, UFIs and fiat as a payment.
Basic – occasionally service usage. Basic tariffs.
Purefi Ico more frequent service usage. A user can subscribe for 6 or 12 months service packages and be eligible for the overall subscription discount (SD). The subscription fees are paid in most major cryptocurrencies, UFIs and fiat. A user is issued with an expired and non-tradeable derivative of UFI (UFI-D) associated with a particular service package via Non-collateral PureFi lending protocol.
big players: DEXs, LPs, funds, protocols, etc. are eligible for the professional packages discount (PD). Pre-conditions – that also might be borrowed through non-collateral PureFi lending protocol.
a compliance provider sorted out and vetted with PureFi standards. There is a pre-condition to be met – UFIs pooling.
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One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.