PureFi Enhances Privacy-Based ZK Compliance Infrastructure for Institutional DeFi Protocols

PureFi, a provider of zero-knowledge (ZK) proof-based compliance solutions for institutional DeFi protocols such as Panther, Astra DAO, and RAILGUN, has launched an AML/KYC framework integration directly into Uniswap V4 smart contracts. This upgrade addresses security risks by ensuring transactions are verified before execution, preventing potential attacks from malicious actors.

Protocol-Level Compliance: Tackling Security from the Core

PureFi’s technology differentiates itself from traditional solutions by embedding verification into the core of the blockchain, rather than just implementing it on the front-end. This ensures compliance even when users interact directly with smart contracts, protecting the system against attacks like the recent Bybit hack. PureFi aims to preserve decentralization and privacy while remaining compliant.

Uniswap V4 Integration: Bridging Compliance and Decentralization

PureFi Dex is built on Uniswap V4, demonstrating that DEXs can be compliant without sacrificing decentralization. The architecture includes:

- Custom Compliance Router: Replaces Uniswap's standard interface with a regulatory-compliant router.

- Level-Based Verification: Depending on the volume of transactions, different verification steps are triggered:

- Low Volume: Basic identity screening and sanctions.

- Medium Volume: Validation of liveness and funding.

- High Volume: Comprehensive KYC and real-time wallet monitoring.

PureFi's Competitive Advantage

PureFi outperforms competitors like Predicate with the following advantages:

- High reliability of centralized issuer: The system focuses on a single issuer, supported by AMLBot and integrated KYC providers, compared to Predicate's reliance on multiple operators.

- Hybrid transaction security: Integrating whitelisting with co-signed transactions to ensure fast transactions while maintaining compliance.

- Unified KYC/AML process: Unlike Predicate, PureFi combines both processes into a single system.

Flexible and privacy-protecting mechanism

PureFi provides a rules-based compliance system that can be customized to the needs of each protocol or organization. Furthermore, the platform uses ZK technology to protect privacy, only confirming compliance without revealing personal information.

The Future of DeFi

PureFi Dex, which now supports the UFI/BNB trading pair, exemplifies the regulatory-compliant DeFi model. Its modular design allows for rapid regulatory updates without changing smart contracts.

About PureFi

PureFi provides compliance solutions for DeFi protocols and institutions, meeting regulatory standards without compromising decentralization. The platform enables investment funds and institutions to execute fully compliant transactions in the DeFi market.