Problems & Solutions

MANTRA Finance acknowledges the numerous challenges confronting the cryptocurrency market and endeavors to leverage the lessons learned from the prior mistakes made by centralized and decentralized projects. During our years of experience developing products in the DeFi space, the MF team has identified several critical gaps that persists within existing DeFi Platforms:

  • KYC / AML Risk - Traditional DeFi platforms do not carry out KYC (know your customer) nor AML (anti-money laundering) checks on users and/or transactions on their platform. This may expose users to potential interactions with counterparties listed on OFAC and other sanction lists or that are politically exposed persons, whether directly or indirectly. As a result, institutional investors and organizations are unable or unwilling to engage in DeFi.

  • Lack of Effective Monitoring - Traditional DeFi platforms lack products and services designed to monitor and detect suspicious activities by DeFi users.

  • Poor User Interface - Many DeFi platforms have UI / UX that are only designed for native crypto and DeFi users, and do not adequately serve new crypto investors or those looking to enter into the space.

These deficiencies have resulted in the DeFi space being perceived as a risky and intimidating trading ground by both institutions and individuals alike. In response to this issue, MF is determined to incorporate an additional layer of security into its ecosystem, and offer a secure platform that provides the same benefits as the KYC process of centralized exchanges, while still enabling full control of one's own assets through self-custody. We believe this will provide our users with a “best of both worlds” DeFi experience.

By providing users with a secure and transparent environment, we aim to foster greater confidence in the DeFi space and help reduce the incidences of fraudulent activities.

We have designed our platform to address and service a wider audience, with the ultimate goal of facilitating a more inclusive and accessible DeFi ecosystem, which empowers users with a greater sense of control over their financial future.

What it means to KYC on MANTRA Finance’s platform

KYC onboarding will be used to identify and verify MF platform participants before allowing them to use our products and services. Our main goal at MF is to offer our DeFi services in a manner that helps prevent fraud, money laundering and other illegal activities. MF’s compliance team will review and approve or disapprove user access to the platform, based on customer identification, risk assessment, verification and due diligence. This process allows us to determine whether the user’s wallet is whitelisted to interact with MF’s suite of products. There will also be ongoing monitoring on customers’ activity to detect any suspicious activity or behavior that may indicate fraud or money laundering. While this step may take a limited amount of additional time at sign up, the benefits in safety and security that it offers to all of our customers and counterparties is more than worth the effort.

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