DIVA Protocol
  • 👋Welcome
  • 🔅Introduction
    • Derivative contracts
    • What is DIVA Protocol
      • What problem does it solve
      • How it works
        • Reference assets
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      • Owner election mechanism
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  • 🌈DIVA App
    • What is DIVA App
    • Overview
    • Create position tokens
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      • Downside bet
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      • Upside bet
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    • Leverage
  • 👨‍🎓Pricing derivatives
    • Introduction
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  • ⚓Oracle integrations
    • Overview
    • Tellor
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    • Overview
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      • Functions
        • Core protocol functions
        • Getter functions
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    • TheGraph
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      • Whitelist subgraph
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  • 📱Contact & Media Links
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  • 👨‍🎓Technical Blog
    • Flash loans in DIVA Protocol
    • NDVI outcome reporting guide for Tellor Reporters
    • Enabling capital efficiency in DeFi
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  1. Introduction
  2. What is DIVA Protocol
  3. How it works

Compliance feature

Bridging the gap between DeFi and TradFi

DIVA Protocol is leading the way in bridging the gap between decentralized and traditional finance by implementing a compliance feature that allows traditional financial institutions to use DIVA Protocol while complying with existing KYC and AML regulations.

This is achieved by giving the creator of the derivative contract the possibility to restrict the transfer of the position tokens to holders of a pre-defined NFT, such as a non-transferrable KYC token issued by a bank or a third party provider.

Furthermore, each derivative contract is a separate entity in DIVA Protocol. This guarantees the segregation of funds, ensuring that assets held in one pool remains entirely separate from those held in any other pool.

By implementing these two critical features, DIVA Protocol directly addresses a key concern of regulators regarding the interaction of traditional financial institutions with DeFi protocols.

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Last updated 1 year ago

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