PureFi Product description
As you know, PureFi has recently launched its MVP, which is currently being tested by the selected beta testers. In addition, any regular user can try it out now and generate a pdf VC certificate containing their risk score utterly free of charge!
In this article, we would like to explore what the current version of the product can do, who could use it, and how. Besides, we will mention where the overall development of our product is headed.
The main idea of PureFi is to provide transparency and compliance to the DeFi space while keeping one’s anonymity. To achieve that, the information about a user regarding the AML risk score and specific KYC data will be stored in the Verifiable Credentials (VCs). Due to the nature of VCs, they disclose only bits of the information required at a specific time. If you are not familiar with the Verifiable Credentials concept, you should first check out this article, where our CMO, Anastasia, describes its usage in a real-life example.
Currently, by using our MVP, it is possible to generate a PDF version of the VC certificate that shows one’s AML risk score. This score is obtained by checking the user’s wallet interactions on the blockchain by parsing it with a database of the blockchain addresses that is constantly updated. Since the blockchain is a publically available domain, it is possible to “cluster” its addresses into specific categories. Once a user’s wallet interacts with a particular category, for example, an exchange or an online casino, a certain AML risk score is assigned. Interacting with illegal or shady addresses increases the user’s risk score.
VC Certificate generated from PureFi’s widget.
The current Beta product represents a widget, which protects Web 3.0 DeFi protocols from high-risk assets by analyzing users’ wallets before interacting with a particular dApp. PureFi widget requires each user to authorize a verification request. In other words, it requires signing a message. To perform such verification, users should hold a certain amount of $UFI tokens as a required condition. Below we describe a simple user flow interaction with the widget:
- A user wants to perform an action (stake, provide liquidity, swap etc) on a dApp. PureFi widget will notify the user that they need to connect and sign a message for authorization using MetaMask or Wallet Connect.
2. A user clicks to perform an AML check. If there are enough $UFI tokens on the user’s balance, the status of the wallet would either change to “OK”, if the AML score is low, or to “Lock” if the AML score is high. If there are not enough UFI tokens, the transaction will be rejected.
3. Once the AML screening is performed, a user can inquire the source of their funds by clicking on the PureFi widget.
Every user is able to download a digitally signed PDF with their risk score and proved source of funds.
Our full-fledged product would be used in both B2B and B2C scenarios.
On one hand, DeFi users will have a chance to check the AML score of a certain pool or contract they want to interact with.
On the other hand, a DeFi pool, for instance, will be able to limit its usage by the users, whose risk score is above a predetermined “safe” threshold.
In both cases, one of the key requirements for such an AML check is having UFI tokens on one’s balance (either on the user’s wallet or in the form of a token purchase by the company). This ensures a utility-like feature of the UFI tokens.
The next iteration of our product currently in the pipeline is the provision of the KYC data. In simple terms, PureFi’s interface will allow users to pass KYC verification via one of our KYC partner providers. Again, one of the pre-condition will be holding UFI on one’s wallet. After completing KYC, a user will store his or her KYC data in a form of VC. Then, when interacting with a certain service, a user would not need to disclose his/her full KYC, instead, only the ones that are required by that particular service or an app — for example, whether or not a user is a US citizen.
We will be providing more details about the second iteration of our product that includes KYC elements in the future articles. Stay tuned!