GovernorDAO and unFederalReserve Announce to Partner on Institutional DeFi
The respective management teams of both GovernorDAO and unFederalReserve are excited to announce their intent to work together to solve the challenges of institutional wallets and multi-person access. It is widely considered that the next trillion dollars in crypto will be sourced from companies, not individuals, making their first steps into the world of digital currency. Whether their digital assets are stablecoins, universally accepted tier 1 assets like Bitcoin or Ethereum, or moon-shooting-meme-token-altcoins, appropriate corporate controls start with access management.
The Challenge of Access and Control When Wallets are the Primary Access Point
For example, assume Bitmart’s executive team wanted to use ReserveLending+, our institutional DeFi (decentralized finance), pool-to-peer lending platform. Ostensibly, Bitmart would need to connect their ERC-20 wallet to engage withthe software. But who at Bitmart has hands-on keys to execute transactions? Who should have the authority to do so? Should that authority be multi-sig? Lastly, there is a question around how to manage kill switches over any one individual’s control or exercise the ability to add new users.
This is where GovernorDAO and unFederalReserve can tackle that issue without requiring unique, centralized wallets. Molecule-like nature of the blockchain and the ability to link attributes between data modules. A specific token (NFT) can represent a bank account, a particular token can reflect identity information, and another is a transformative data engine or gating mechanism to a specific function. These companies handle different modules to create a safer ecosystem for institutional users.
“We see the exciting collaboration between GovernorDAO and us as a microcosm for the great things across the digital asset industry. I expect more useful products to stem from multiple specializations working together in the same way traditional company verticals were established,” said Howard Krieger, CEO, and Co-Founder of unFederalReserve.
unFederalReserve facilitates settling terms and processing digital asset data between suppliers and borrowers. The institutional version of ReserveLending, aptly named ReserveLending+, wants to take every precaution that not only approved wallets are engaging but that the user controlling the wallet is the authorized and actual person allowed to act on behalf of the company.
This is where GovernorDAO comes into play. GDAO specializes in attributing wallets leveraging their existing solution to accommodate multiple individuals. Driven by its biometrically verified Proof-of-Existence token, GDAO aims to be a role model for other projects offering their end-users the utmost security and anonymity in a genuine, decentralized governance community. In addition, its technology will allow companies to ascribe multiple users to the wallets connecting to ReserveLending+ or any other direct wallet connect product. Management would then have the ability to manage permissions as part of a robust user control process.
“We are limitlessly enthusiastic about the prospects of blockchain technology, but the infrastructure available leaves much to be desired for real world adoption. Governor DAO is committed to helping others improve their web3 experience & implementations, and we share that this cooperation will enable unFederalReserve to service their clients in a manner that is secure, effective, and privacy preserving.” said Zane Huffman, Co-Founder and lead strategist
To understand this is more than a simple username and password security. Governor DAO has created a portal for biometric authentication of Ethereum wallets. Users enter the portal with a web3 connected wallet and input face + voice readings. Locally, the user device runs the input information through hundreds of algorithmic indicators to create an output hash.
No two individuals produce the same output hash, and Governor DAO receives the hash corresponding to the input address. If the hash is unique from all others in the system, the address is tokenized as “provably unique.” A non-transferrable ERC20 “Proof-of-Existence” (PoE) token is minted to the user wallet, enabling any smart contract to quickly check for that verifiable uniqueness with just one additional line of code. This can be done so that multiple ePoE (Enhanced-Proof-of-Existence) tokens can co-exist within a company-managed wallet.
One of the biggest challenges to institutional adoption of digital asset technology is understanding and developing policies and procedures around who and how they will connect to that technology. Questions remain around what platforms will become the interfaces of choice for Treasurer and Controller functions and if standard practices will ever form.
While the collaboration between GovernorDAO and unFederalReserve cannot prevent employees with access to the wallet from committing any wrongful act, the two see the insertion of a gated identity solution in a step closer in the fight against sybil attacks. An easy-to-scale solution for preventing unwanted wallet actions committed by persons within the company with or without the authority to do so specifically on ReserveLending+. Companies could then choose if they want all applications accessible by the wallet user to require incorporation of GDAOs technology and, perhaps, unFederalReserve’s admittance logic.
Safety first, second and third.
Governor DAO is a Wyoming-based Decentralized Autonomous Organization positioned as the “DAO of DAOs.” Governors offer a suite of products and services for projects looking to build out DAO qualities in their communities. Our offerings include an industry-first Sybil-resistance product for one-voice-one-vote governance and governance bootstraps for new communities, consultations, and smart contract porting.
About Residual Token, Inc. dba unFederalReserve
In business since 2018, Residual’s team of former bankers, technologists, and compliance professionals have been exploring ways to make crypto lending and borrowing markets safer and traditional markets more efficient. They currently have in development a handful of blockchain-based software available for license. Its flagship product, ReserveLending, allows permissionless access to crypto holders to deposit, earn and borrow top digital assets safely, efficiently, and effectively for cash management, hedging, or speculative purposes.
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