Making DeFi
a safer place.

Institutional KYC & risk due diligence
to help you navigate the $3 trillion defi market.

web3

10 Risks Institutions Face

DeFi Standards

We are a community based standard settings platform for the global DeFi (Dentralized Finance) market covering virtual digital assets. Making it safer for everyone.

Risk Due Diligence (RDD)

Using RDD we aim to provide our audience with the toolkit to enable better risk management. We are not a trade body or association but act as if we are. We are certainly not regulators. The standards are guidance for best business practice. We attach no weight to the RDD Questionnaires (RDDQs) although do provide examples. We aim to be very transparent. Our RDDQs are available without subscription.

We aim to help protect customer actors from bad actors, help reduce systemic risk and ensure a level playing field. We are agnostic to projects, protocols and code. We are also agnostic to jurisdictions. DeFi (and all its hybrids) is the world's first truly global financial system and needs global standards, not regulations driven by countries with political agendas and old TradFi vested interests.

Risk Management

Virtual asset service providers (VASPs) cover many parts of the blockchain eco system and signing off approval to utilize their services is a core onboarding and ongoing monitoring process that can be time consuming and costly. We aim to de-risk this process through the use of common terminology and risk warnings in this extremely fast paced sector.

Many current regulations do not work in the DeFi space (e.g the "travel rule") and instead of trying to squeeze squares into circles, it makes sense to start over and look at all risks, not just identity risk, like code risk; ESG risk; governance risk; liquidity risk; loss risk; jurisdiction risk; legal risk; suitability risk; reputation risk; and public conduct risk. Instead of being reactive, the community is being proactive and creating a jurisidictional agnostic framework for all of us to agree and use in an attempt to make a safe place for all actors to participate in.

DEMO - Person KYC →

Check the risk score

Select the non default answer to see the perceived risk using example weightings. These are not prescriptive but highlight potential risk. Nothing is risk free but modelling the risk helps mititgate against unforseen events. The risk of one actor and its weightings are different from other actors. A Centralized Exchange acting as a broker may see client identification and suspicious transactions (KYC and AML) as its biggest risk (and one TradFi regulators see as high risk too) whereas a participating actor may see Code risk and Governance risk as much more important.

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Risk Types
RDDQs
Actors & Services

For the purposes of weighting and identifying pertinent risks we group types together. In the TradFi world, operational risk is often the de facto group. Although this is relevant in DeFi, because of its heavy technological dependancies there are many other non human error risks to consider such as code risk and dependency risk.

Person (KYC)
Entity (KYC)
Centralized Exchange
Decentralized Exchange
Smart Contract
Wallets
Blockchain
Custodian
Staking Providers
NFT Provider
Liquidity Pools
Market Data
Benchmarks
Lending platforms
Stable Coins
Auditors
Trading platforms
Accounting
Research & Analysis
Storage
Insurance
Associations
audience

Audience

Our audience are participating actors such as Insurance companies, asset allocators, asset managers, corporate treasurers, policy makers, regulators and government agencies, along with those providing services in the DeFi market.

Our Experience

Our team originally came from TradFi: Banks such as JP Morgan, Bankers Trust, BNP Paribas and DB along with Hedge Funds, Family Offices, Fund of Funds, Private banks and Wealth managers. They also have over 5 years DeFi experience in mining, staking, trading and tokenomics.

Your Data

We don't store any of your RDDQ responses. If you would like to use the RDDQs directly, they are available as permalinks and api calls. We also have apis for completed RDDQs, Sanctions lists, the standards and a RDDQ google spreadsheet:
 
Operated by BinariiLabs
Ireland
Rddqs

Privacy disclosure

We respect, as should all of us, your privacy. We aim to collect as little as possible. We use no marketing cookies and try to keep our code dependancies to a minimum. If you think we can do better, let us know. Further information: Privacy Policy

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No financial advice

These global standards, best practice guidance and risk due diligence questions are an attempt to make DeFi a level playing field. They are not intended to provide any investment advice. Claims made in this website do not constitute investment advice and should not be taken as such. In the meantime, it would be very useful if the jurisdictional regulators would start working together and treating these new financial related projects as a different form of instrument. The Howey Test (1946) was designed in an era of deeds of title and paper bearer certificates. DeFi can be humanless and profit is not always the motive for using protocols. TradFi Derivatives for example are based on underlyings of real assets like the fair value of incorporated companies whose value is derived from fiat currencies which are themselves derivatives on an underlying like gold or a printing machine. Fiat is seen to be a real asset which it clearly is not. The new DeFi world matches actors with agendas. Most of the time the agenda is to do things better and faster. Defi enables everyone including the bankless and unserved members of the community to transact without having to understand how to use Excel or have an MBA from an elite university or be able to able to decipher the millions of pages of legal text opinions as to whether a bitcoin is a currency, a security, a commodity, a derivative, an underlying, a valueless number, type of gambling or something that will just go away. While we wait for a consensus by the old guard, the new guard will create their own computer based standards. Our aim is to turn these standards into bots or smart contracts that do all of this behind the scenes. Image a world where the community agree on how to transact and just do it without a parental overseer who is always a bit behind the curve...

API

You can grab this data (=importdata(api)) for free. The full data set is here at

/api/?data=all&format=[csv|json]

If you have a key you can grab completed rddqs for the most current relevant actor services at

/api/actors?data=all&format=[csv|json|html]&key=[*]

Collateral & Code

Hero image from freePik.com

Actor Icons from svgRepo.com.

Other icons from cryptoLogos.

DeFi Universe coinMarketCap.com

Our Logo Icon (svg).

Our Brand Logo (svg).

See our tech profile at builtWith.com


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2022

VASP lists.

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