IdentitySwap is an Automatic Money Market (AMM) dApp that demonstrates the concept of Decentralised Identity on the Solana SPL Token-Swap program. A user can interact with a liquidity pool only if they are in possession of a valid identity account, certified by a trusted identity validator.
The association of an identity account with a transaction is stored on-chain.
The hackathon submission is made up of two repositories:
- IdentitySwap: A UI for the SPL Token-Swap and Identity programs.
- civicteam/solana-program-library: A fork of the Solana SPL repository including the Identity program
See here for a demo and walkthrough. See here for an FAQ on the project.
Defi services have traditionally been anonymous/pseudonymous, in that they do not require any user identification or KYC to use.
While in many ways this is a good thing, it leads to services such as Uniswap being used for money-laundering, which, in turn, attracts the attention of government regulators.
Centralised exchanges that previously emphasised anonymity, such as BitMEX, have recently integrated KYC to avoid the risk of being shut down by regulators.
Adding KYC or Identity in any form to DEXes is a much more complicated matter, however.
The nature of a DEX is that any attempts to impose a KYC wall can be circumvented by interacting directly with the smart contracts.
And in the general case, on-chain identity is a concept that has not yet taken hold, but has been on the horizon for some years now.
The “identity primitives” for decentralised identity, however, are relatively well established, and are being curated and developed by the Decentralised Identity Foundation.
As a submission to the Solana Hackathon, we have added an identity layer to Solana, in the form of "Identity Accounts".
Identity Accounts represent a user’s Decentralised Identity (DID) on-chain, and can therefore be passed as inputs into Solana programs in the same way as other Solana accounts.
These accounts are managed by a new Identity Program, which can respond to challenges from other Solana programs that have Identity requirements.
Identity Accounts contain "attestations", which are hashes of off-chain Verifiable Credentials. Verifiable Credentials (VCs) are collections of claims about a user, or a "Subject", that have been signed by an Identity Validator (IdV), and can therefore be presented to Identity Requesters (IdRs) in order to meet KYC requirements, or other identity challenges.
The SPL Token-Swap program has been adapted to require a presentation of a valid identity when swapping via a liquidity pool.
In this case, the "Subject" is the user of the liquidity pool, either someone wishing to swap, or deposit or withdraw liquidity.
The Identity Requester (IdR) is the pool itself. This is an "on-chain”" requester, unlike the off-chain identity requesters such as BitMEX or other centralised exchanges or blockchain services.
For the purposes of the hackathon, the Identity Validator is any public/private key pair. The public key is passed as a parameter during initialization of the liquidity pool.
Note: users’ personal information is itself not stored on the blockchain as part of this project. Transactions are associated with an Identity Account, but the identity account by itself does not divulge the identity of the owner. Providing this information, for example under audit from a regulator, is out of scope for this project, and would be an audit requirement of the identity issuer, i.e. the IdV.
Run:
yarn
yarn start
to start the app in the development mode. Open http://localhost:3000 to view it in the browser.
The page will reload if you make edits.
You will also see any lint errors in the console.
- Connect your wallet
- Airdrop some test tokens
- Register your identity
- Swap!
To get test tokens, you can use the ops scripts.
Run the unit tests using:
yarn test:unit
Integration tests require a local solana cluster, with the token-swap program installed (see Solana Scripts below).
Once you have the token-swap program built and deployed, run the integration tests with
yarn test:integration
yarn build
Builds the app for production to the build folder.
Download the latest solana docker image using:
yarn solana:localnet:update
Then start the solana localnet cluster
yarn solana:localnet:up
Install Rust, follow the instructions here https://rustup.rs/
Build the token-swap program
yarn solana:build swap
Build the identity program
yarn solana:build identity
Load the token-swap program onto the cluster using
yarn solana:loadProgram swap
Load the identity program onto the cluster using
yarn solana:loadProgram identity