Zero-knowledge Identity Provider Keyring and Defi Lending Protocol Euler Finance have joined forces to launch verified safes on Avalanche in an attempt to make decentralized financing more compatible.
In a press release that is shared with the Defiant, the projects said that the launch has linked $ 3 million in stimuli to achieving specific capital goals and introducing a new way to control access to Defi.
The safes integrate multiple Defi components, including the Euler lending protocol, the XUSDC yield instrument of Multipli and price feeds of the PYTH network. Access to deposit is limited by the “Zkverification” layer of Keyring, which uses advanced cryptography to verify the identity of users without sharing personal information.
How the stimuli work
Alex McFarlane, co-founder and CEO of Keyring, told The Defiant that Three Sigma, a cyber security company, has assessed the Zero-Knowledge System of the Kluis and the approach to data safety through shared computing.
Asked how key hanging would manage the sustainability of the proceeds if deposits would achieve the full goal of $ 500 million to activate the maximum stimulation package, McFarlane said that the safes function as a composite access layer to other Defi yield sources. He explained that “the most important number to look at is $ 50 million”, which suggests that as soon as the total value locks (TVL) that level, “the stimuli will return to that of normal Defi loans.”
“In general, the collateral with which we collaborate with, for example, Multipli’s XUSDC is traditionally around 10%). For those yields, however, we will soon have season II stimuli up to> $ 1 billion in TVL,” McFarlane explained.
Although the current safes are based on XUSDC, McFarlane said that the system is “agnostic of the underlying assets”, and ultimately “other stablecoins, Tokenized shares and even other block chains can support.”
KYC enters Defi space
The dependence on the safes of existing identity controls of centralized platforms also raises questions about user verification. When asked whether Keyring offers an extra layer of screening in case a user slides via KYC on platforms such as Binance, McFarlane argued that further checks would only add “data obligation” without increasing the protection. He said that Keyring’s model inherits the safety of off-chain identity controls without duplicating them on the chain.
“In general, we suggest that the regulated entities have a significant check for failures in KYC. Nothing can be added from extra checks than data liability for users. False identities are abused daily in traditional finances; Keychain simply brings users the hereditary safety of offchain identity without liability,” said McFarr.
The launch is supported by Avalanche, Multipli, Turtle and Pyth, with incentives divided through Merkl, a decentralized smart contract using zero knowledge certificates. The $ 3 million figure reflects the combined value of token rewards, some of which are held over time or are not immediately transferable.
