The Only DEX with Anti Money Laundering Measure

AML is key for elevating DeFi to institutional grade level

Money Laundering is a thorn in the side of Decentralized Finances and is the first vector of verbal attack and squalls of criticism that DEXes, in particular, are subjected to. There have been attempts to make DEXes AML-compliant with the introduction of KYC that in essence simply ruins the whole idea and concept of DeFi as a whole. Jumbo Exchange has taken a different approach that focuses on the KYT (Know Your Transaction) and decentralized AML solution instead of piggybacking on the centralized saddle. In basic terms, KYT utilized by Jumbo Exchange is adherent to decentralization, is not impinging on privacy of individual financial conduct, and is fully customizable by the governance of Jumbo Exchange.

This is what the partnership with HAPI means for our project. We believe in the decentralized mode of action that is ungoverned and doesn't entail any surveillance of individuals. However, regulations and compliance with simple AML solutions are key to propelling DeFi beyond a constricted circle of users. HAPI provides a solution that is both decentralized and is able to prevent some instances of Money Laundering from happening.

This is how it works in short:

The transaction, before reaching Jumbo Exchange Smart Contracts, is firstly routed through HAPI Smart Contracts that check the transaction on the potential case of maliciousness. This is done by both accessing an internal, on-chain HAPI database and calling external, off-chain data providers that supply additional information on the given transaction and whether a given wallet address has been involved in any previously devious activity. Risk category and general categorization are chosen by Jumbo's governance committee.