Compliance

Zaïffer implements a multi-layered compliance framework to ensure responsible operation while maintaining user privacy. The protocol screens all addresses that interact with the system through both on-chain and off-chain mechanisms.

On-Chain Sanctions Screening

The protocol automatically blocks addresses on the Office of Foreign Assets Control (OFAC) sanctions list from interacting with Zaïffer contracts. This enforcement happens directly on-chain through the integrated SanctionsList contract, ensuring immediate and transparent compliance with regulatory requirements.

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Additionally, protocol administrators can add addresses to the on-chain restrictions as needed to maintain platform integrity and meet evolving compliance obligations.

Off-Chain Transaction Monitoring

Zaïffer integrates with Chainalysis Know Your Transaction (KYT) services to monitor and index all protocol interactions off-chain. This provides comprehensive transaction analysis while keeping sensitive balance information encrypted on-chain, striking a balance between regulatory compliance and user privacy.