A permissioned regulatory and compliance layer that sits on top of permissionless protocols and chains.
Blue Network is an aggregation of DeFi protocols, tokens, credentials, credential issuers, chains, and wallets that support permissioned trading on permissionless primitives.
- Safe Tokens — ERC20 Wrapper Tokens that can only be traded by KYC/AML wallets (i.e., DAI.safe);
- BlueID — Credential aggregator that verifies user attributes like KYC/AML;
- DeFi Protocols — ERC20 compatible DApps that support Safe Token pools;
- Credential Issuers — Service providers responsible for maintaining user Credentials;
- Wallets — Institutional and retail users;
- Chains — EVM-compatible blockchains that serve as a data settlement layer;
Safe Tokens are ERC20 Wrapper Tokens that can only be traded by KYC/AML wallets. Compatible with nearly all DeFi protocols, Safe Tokens allow permissioned pools to form across DeFi, even on the most popular protocols like Uniswap and Curve. Safe Tokens utilize on-chain credentials to check KYC and AML through BlueID, a credential aggregation solution. By checking the necessary credentials during a Safe Token transaction, all compliance checks are performed verifiably at the smart contract level, ensuring regulatory requirements are met without imposing additional frictions on users like repetitive KYC onboarding.
Initially, five Safe Tokens will be available for permissioned trading: ETH.safe, wBTC.safe, USDC.safe, USDT.safe, and DAI.safe. Each Safe Token appends “.safe” to the underlying token’s symbol.
BlueID holds the users credentials, allowing Safe Tokens to verify user attributes like KYC/AML during transactions. BlueID is integrated with Credential Issuers like Persona that support a variety of on-chain Credentials. Standardization across Credential Issuers for different types of Credentials (verifiable credentials, non-transferrable NFTs, etc) broadens the use cases available on the Blue Network and eliminates user frictions like repetitive KYC onboarding.
Liquidity pools that are denominated in Safe Tokens always check KYC/AML of the wallets during any type of trade (swap, deposit, withdraw, etc), even if the liquidity pool’s code is permissionless. Protocols do not need to integrate any KYC/AML code as all checks are enforced directly from the Safe Token contract itself.
Credential Issuers facilitate the maintenance of on-chain Credentials. This includes minting new Credentials, burning existing credentials, managing expiry dates, and more.
The Blue Network supports any ERC20 and any EVM compatible wallet allowing both institutional and retail traders to participate on the network.
Any EVM compatible chain can support the Blue Network. While the focus is to expand Safe Token liquidity as rapidly as possible, the core team is aware of the nascent state of bridging technology and will be cautious with bootstrapping permissioned liqidity cross-chain.