Key Takeaways
- Hover has partnered with Quadrata to offer additional services to its users. This collaboration will mark the first public KYC check for any project launched within the Kava ecosystem, indicating a growing focus on compliance and regulation within the decentralized finance space.
- Quadrata provides digital identity services, including KYC/AML screening, accredited investor verification, and on-chain credit scores for DeFi protocols and businesses in the Web3 space.
- The partnership with Quadrata allows Hover to implement an optional KYC check for its users, granting them access to the Hover Rewards Program, which provides stakers with a portion of protocol fees.
Hover, a Kava-supported lending market, has partnered with Quadrata, a GDPR-compliant digital identity service, to offer additional services to its users. By undergoing an optional KYC check, Hover users can participate in the Hover Rewards Program, which grants stakers a portion of protocol fees.
This marks the first public KYC check for any project launched within Kava.
Quadrata provides digital identity services, including KYC/AML screening, accredited investor verification, and on-chain credit scores for DeFi protocols and businesses in the Web3 space.
Upon successful onboarding, users receive a non-transferable NFT called the Quadrata passport, which contains no direct personally identifiable information. On-chain services can query this NFT for specific data verified by Quadrata, granting access to users if the passport meets their criteria.
Vincent Wu, a core contributor to Hover, emphasized the importance of integrating with Quadrata to ensure best practices in the decentralized finance space.
However, this partnership also means that Hover Rewards Program participation will be restricted for users from OFAC-sanctioned countries like Iran and North Korea, as well as certain other jurisdictions like the United States. Geo-blocking of IP addresses will further enforce these restrictions to prevent illicit activity.
Other DeFi protocols, such as Mars Protocol on the Cosmos platform, are also implementing access restrictions to block sanctioned players and maintain compliance.
Quadrata’s President, Lisa Fridman, expressed pride in supporting the DeFi ecosystem with compliance-aware solutions that protect users’ sensitive information while enabling access to valuable services.
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