In addition, various investment groups and individuals have supported the Astra Protocol project, confirming the requirement for decentralized compliance in the DeFi sector.
According to Astra, things are progressing steadily for their team and its internationally patented protocol. The initiative primarily focuses on providing DeFi-related smart contracts with a completely decentralized compliance layer.
That layer provides Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) capabilities. Moreover, the compliance layer can serve as a tool to address any real-world compliance issues with the assistance of legal firms.
The growth of decentralized finance has shown that there’s a requirement to follow specific rules determined by members of society. The majority of protocols in the market don’t offer this type of functionality, yet the change “will be inevitable,” according to Astra.
Without a robust compliance layer, app developers and end-users can lose control of the ecosystem.
As noted in the announcement, the existing tech landscape allows for overcoming and resolving disputes that may result in various scenarios. Therefore, an on-chain dispute resolution system “is crucial, particularly for decentralized finance and the high risks it can present.”
The update also mentioned that the Astra Protocol provideas legal assurance, framework, dispute resolution, and regulatory compliance for lending and borrowing, derivatives, stablecoins, asset management, decentralized insurance, and decentralized exchanges.
The Astra Protocol token raise “concluded recently, raising $9 million for the team to keep building and evolving its compliance layer,” the announcement confirmed.
Well-known investors in the project include Republic, DAOMaker, Fundamental Labs, Faculty, Richard Dai, and Wave GP Cardano.
Jonathan Han, Partner at Republic stated:
“We believe Astra’s solution is a key part of the critical movement for DeFi to become mainstream. We are excited to back the Astra team who works diligently to bring the benefits of DeFi to more people and organizations”.
Astra Protocol co-founder Arthur Ali said:
“We are extremely pleased to announce the closure of our token raise and proud to announce strong backing from the top tier investment groups and individuals such as; Republic, DAOMaker, Richard Dai, Fundamental Labs, and institutional backing. We firmly believe that ASTRA is key to the future of DeFi. It will allow us to unlock the next path of growth in the industry, allowing more compliant practices across multiple countries and ensuring further participation from major traditional institutions. Our globally patented technology will seamlessly allow DeFi to continue its growth whilst promoting greater confidence from regulators without compromising decentralization.”
Astra Protocol has entered various other partnerships with different legal and auditing firms, the update confirmed.
As covered, Astra’s goal is to equip all DeFi smart contracts with a decentralized compliance layer, including KYC & AML capabilities, in order “act as a tool to resolve real-world compliance issues using the expertise of trusted legal firms.”