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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