Grants: PureFi - AML Compliance Protocol

assets_images_press_light_png_logo-purefi-dark-6

Name of Project

PureFi

Application type

Grant - 100 Ports ($20M)

Proposal overview

PureFi is the only DeFi compliance protocol for mitigating risks of interacting with high-risk illicit assets and onboarding institutionals into DeFi. We aim to provide a full-cycle solution for crypto asset analytics and AML/KYC procedures on the DeFi market.

PureFi is already launched on the three networks - Ethereum, Binance Smart Chain, and Polygon. We are now looking to port to the Harmony network to develop our product further and contribute to the ecosystem achieving a broader outreach. We are building a solution that within a set of smart contracts will connect KYC/AML providers with DeFi users and Dexs/Defi projects on various networks to provide crypto assets analytics and protect honest DeFi market players from “dirty money” risks. For example, the liquidity pool user will avoid the risk of getting an illegal money trail using the Verifiable Credentials certificate with his full-fledged AML/KYC data.

Currently, PureFi has released its MVP and interacts with the beta testers to gather valuable feedback and suggestions. The current version of the product utilizes various AML providers in order to check the purity of one’s cryptocurrency assigning a certain ML risk score to a user. However, by connecting to Harmony’s ecosystem, we want to be the first who will be able to build a framework for the analysis of its blockchain interactions to analyze and detect different classes of operations, cluster analysis will be applied. By clustering, we mean the distribution of addresses between large groups of labeled entities (clusters) that are closely connected through their operations. This mapping activity will bring AML compliance to the Harmony ecosystem and use PureFi’s solution to provide crypto assets analytics, and protect honest DeFi market players.

At the MVP stage, we already have big names (DEXes, IDO platforms and DeFi protocols) in our pipelines which we currently integrate as our beta testers. These partnerships will allow millions of users who interact with DeFi daily, as regulations and further “tightening” of the DeFi are on the horizon. Our community currently consists of +100k users who believe in our idea and wish to stay AML compliant.

We are requesting $250K in equity-free contribution: $100K after creating a full technical specification describing the clusterization approach taken as well as a toolkit for parsing Harmony Blockchain, $100K after creating explorer-like web interface to navigate through clasterized and labeled blockchain, $50K after surpassing 100K address verification requests. We will be handling product development, fundraising, and talent recruitment ourselves.

We are a team of around 30 professionals who are confident that this complex AML solution will be an integral part of the Harmony ecosystem in the future.

Our milestones are:

  • Months 1-2:

    1. General documentation describing the clusterization approach taken.
    2. Toolkit for parsing Casper Blockchain and exporting to SQL Database
  • Months 2-4: Toolkit for analysing “closeness” of the arbitrary address to existing clusters.

  • Months: 4-5:

    1. Explorer-like web interface to navigate through clasterized and labeled blockchain.
    2. Testing, bug fixing.
    3. Production release.

Proposal ask

$250k

Metrics for success

Clusters defined and clusterization performed.
10k+ address verification requests served.

External links

Website: https://purefi.io
Twitter: https://twitter.com/Purefi_Protocol
Medium: https://purefi-protocol.medium.com/

2 Likes

Thank you for submitting a proposal to Harmony’s $300M Ecosystem Fund and our apologies for the late response.

We are in the process of reviewing your proposal. We would also love :blue_heart: to have the Harmony community participate to ask questions and provide feedbacks.

If you have more details to add, please do so by replying to this thread.

The assets in the current farming pools across your supported networks are UFI, SAFLE, SCA, among others. I’m curious as to what your vision is regarding the assets that would enter into the Harmony ecosystem, and if supporting larger cap “blue chip” assets is in scope?

Thank you for the question. The farming pools are not the main utility of the UFI token - we do them as a support for our partners to unite our communities. The main utility of UFI token is to pay for the service of the AML analytics of users and businesses. As we are also partnering with “blue chip” projects, it is safe to assume that they will be both in scope of our main utility of AML checks as well as farming campaigns.

And, of course, if we port to Harmony we will support Harmony based projects as well. We will help the Harmony ecosystem to stay AML compliant by checking the blockchain transactions on Harmony network and applying clustering of such.