The cryptocurrency space continues to evolve. On September 23rd, identity management protocol, Civic, unveiled a new partnership with Solrise Finance, a decentralized fund management and investment protocol on Solana, to help launch the first permissioned decentralized exchange on Solana.
Permissioned, you say. But isn't that an anomaly since DeFi's appeal lies in the fact that it is permissionless, transparent, anonymous, and decentralized?
Well, that may be. But Civic and Solrise Finance are arguing that, given increased regulatory scrutiny, the introduction of a complementary permissioned exchange could be healthy for the industry and would certainly appeal to institutional investors seeking to join the Solana ecosystem. Let's get into it.
A quick Overview
Solana
Solana is a decentralized blockchain built to enable scalable, user friendly apps for the world. Solana today boasts that it is the fastest blockchain in the world and, with over 400 projects spanning DeFi, NFTs, Web3 and more, it also claims to have the fastest growing ecosystem in crypto,
Civic
Civic is an identity verification blockchain protocol that allows consumers to verify their information and securely share this verification with service providers including financial institutions without having to constantly re-verify their identity. This identity management solution is expected to satisfy regulatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks and balances while also protecting user privacy.
Solrise Finance
Solrise Finance is a decentralized, non custodial asset management and investment protocol.
Though only launched this year, Solrise Finance has already established strong institutional partnerships, counted among them, one of the largest digital asset firms, Alameda Research and Delphi Digital, an independent research boutique providing institutional-grade analysis on the digital asset market.
The organization is now seeking to establish a platform to facilitate institutional investment.
Okay, so now that we've caught up with that, let's look into the decentralized exchange.
Solrise DEX Pro
Built on Project Serum, another DEX on the Solana network, Solrise DEX Pro utilizes seeks to offer a traditional order book experience. By utilizing the Civic Pass, market participants on Solrise DEX Pro can vet users and avoid sanctions for injecting liquidity into early-stage crypto and blockchain products.
Civic's KYC process includes email and phone number verification, photo ID scanning and a 3D face map. A digital ID known as a Civic Pass is then issued to the user and shared with the decentralized application which can then confirm if users have been sanctioned. The Civic Pass can be frozen or revoked by the application at any time if entry rules are breached.
Solrise co-founder, Filip Dragoslavic explained that the introduction of the DEX is an effective way to bridge the world of institutions to DeFi without centralizing. Institutional investors must meet regulatory requirements, and so, with Solrise DEX Pro, these players can participate in a parallel ecosystem, accessing Solana's ecosystem.
The decentralized exchange has already won institutional approval, receiving support from FTX CEO Sam Bankman-Fried's Alameda Research which will be providing initial liquidity for the DEX and ongoing support.
So guys, it's early days yet to review the impact that Solrise DEX Pro will have on the DeFi space, but what are your thoughts on this development? Is this a sign of things to come? And will you be signing up for a Civic Pass and an opportunity to trade on Solrise DEX Pro?
For me, I think I need a little more time. I know the Civic Pass has been out for a while, I'm not bashing it, but I don't know, I'm still a bit queasy on it. Call me old school. In any case, I think this entire project, targeting large institutional investors and whatnot, is way above my tax bracket. So I'm sitting on the sidelines, trying to keep an open mind, and following developments with interest. But what about you? I'd love to hear your thoughts.
Well, that's it for me, guys. Thanks for stopping by. Just now, I'm off to make a particularly risky investment which I'll tell you about later.
As always, you know my closing spiel: As we continue to invest and trade in this constantly evolving space, please remember my constant plea: BE SAFE! Arriverderci!
