ERC20 tokens support for onchain verifications using hooks.
Remember when,
on the internetonchain, nobody knew who you were?
A joint experiment by Velodrome, Self.xyz and Celo teams. Audit by ChainSecurity.
Illustration by Hafeez. Originally published in The New Yorker February 23rd, 2015.
Onchain verifications allow us to optimize DeFi for actual humans:
- Reward actual users over bots
- Prove DeFi is ready for legal frameworks (see GENIUS Act in US and MiCA in EU)
- Build better alternatives to KYC using ZK proofs and blockchain
All, and more, while preserving the existing DeFi composable and immutable!
We've extended the OpenZeppelin ERC20 implementation to support hooks for relevant function calls. We've also introduced a registry where token issuers can find available hooks (if they choose to use existing ones).
Token issuers can deploy new tokens using this implementation, which by default behave as regular ERC20 tokens.
They can enable or disable additional hooks in order to enable external verifications for specific function calls.
Once activated, a hook can perform checks before or after a function call.
You can think of this as a layers of verifications, eg:
- Check the transfer destination for OFAC restrictions
- Enable US jurisdiction checks on new mints
- Check the age of the wallet before any allowances
Every hook is a simple smart contract with a name, and a function called check().
Please follow the Velodrome and Celo for updates on the experiment.
In the meantime, please take a look around and let us know if you have any feedback by opening an issue here or by reaching out on our Discord servers.
Basic Foundry project, uses:
- bulloak for branching test tree structure
- foundry for compilation and testing
- forge fmt for formatting
- forge test for tests (including gas tests)