Contract Level Compliance (CLC) embeds regulatory compliance directly into smart contracts. It achieves this by using Chainlink to check if an onchain user has completed KYC (Know Your Customer) with a licensed entity, before executing custom smart contract logic on their behalf. This ensures only compliant users can participate in regulated smart contracts.
No user data is ever revealed onchain except for a "yes" or "no" to the question "Has this user completed KYC with a licensed entity?"
This approach differs from offchain compliance services which monitor transactions AFTER they happen. With Contract Level Compliance, non-compliant transactions are never given the opportunity to execute.
Grant money is intended for security audits and establishing a bug bounty program.
CLC aims to have a transformative impact by:
Unlocking institutional engagement: By making smart contracts regulatory compliant, CLC enables traditional financial institutions to confidently adopt blockchain technology.
Democratizing access: It allows any KYC-verified individual to participate in regulated DeFi, broadening financial service opportunities.
Driving adoption: With regulatory clarity increasing globally, CLC positions itself as a critical infrastructure component, supporting the future of compliant blockchain applications.
Further reading:
Whitepaper: https://www.contractlevel.com/whitepaper.pdf
Introductory article: https://medium.com/@contractlevel/introducing-contract-level-compliance-91806137c88d