More on Dual-Layer Market
Last updated
Last updated
Helios couples a permission-less “public pool” with an opt-in, KYC-gated track that mirrors the architecture of Aave Arc yet preserves Bitcoin-native self-custody. Retail users keep the pure DeFi experience, while regulated desks can route size into segregated pools that enforce AML / sanctions controls at the smart-contract layer. The two rails share the same code-base and oracle feeds, so liquidity can migrate as compliance needs evolve—giving Helios breadth without fragmenting depth.
Permission-less Core
Any BTC wallet
No identity checks; open-source contracts; public mempool settlement
Retail borrowing, liquidation bots, algo-traders
Permissioned Pools
Whitelisted addresses only
On-chain KYC attestation required; separate interest-rate curves & risk limits
Hedge-fund leverage, treasury cash-management, RWA lenders
The split follows the precedent set by Aave Arc, which runs a KYC-only fork alongside the public market (, ).
Credential issuance. A regulated “whitelister” (e.g., a custodian firms) signs an EIP-712 attestation binding a wallet to a legal entity that has passed AML/KYC checks. The signature is written to an on-chain registry. ()
Pool-level check. When a user calls deposit(), borrow() or liquidate() on a permissioned pool, Helios validators first query the registry; no attestation → revert tx. ()
Revocation & updates. If a customer fails ongoing screening, the whitelister submits a revoke tx; the contract blocks new actions and flags existing positions for wind-down, aligning with FATF “travel rule” guidance. ()
Because the logic sits inside the core contracts, a bank can even embed its own front-end that only exposes the permissioned pools to logged-in clients while still settling on the same L1 Bitcoin rails.
Separate supply/borrow caps, LTV bands and liquidation bonuses can be tuned for institutional risk appetite.
Institutional pools can list only regulator-blessed assets (e.g., BTC, USD stable-coins, tokenised Treasuries), limiting custody complexity.
All pools inherit Helios’ adaptive interest-rate model, but permissioned curves can be flatter to favour large-ticket borrowing (think 50 bp blocks instead of 500 bp jumps).
Custodian-run gateway. A custodian runs a Helios validator and handles client onboarding—the same “Fireblocks-as-whitelister” pattern approved by Aave governance in 2025.
Prime-broker wrapper. A prime broker packages Helios liquidity behind its own API, furnishing trade reports that slot into banks’ regulatory reporting stacks (EU FICOD/EMIR 2025 updates emphasize consolidated risk reports).
Liquidity synergy. Even though pools are siloed, oracle-shared rates keep yields aligned; if the permissioned borrow APR spikes, arbitrageurs can borrow in the public pool, front-running gaps until equilibrium.
MVP
Launch core permission-less BTC pool; deploy KYC registry contract (empty)
Q3 2025
Pilot Pool
Partner custodian whitelists 3–5 hedge funds; max cap 500 BTC
Q3 2025
Scale-out
Add USD stable-coin pool, enable RWA collateral, integrate Chainalysis/TRM monitoring
Q4 2025
Helios doesn’t force a choice between “wild-west” DeFi and closed-garden CeFi. Instead, it layers a cryptographically verifiable KYC gate on top of an unmodified Bitcoin-native lending engine. Institutions get the compliance assurances they need, retail retains full permission-less access, and both groups share the same transparent risk engine—creating a liquidity flywheel rather than a fragmented marketplace.
Regulatory on-ramp. 2025 trend reports list permissioned DeFi pools as table-stakes for TradFi entry (, ).
Future-proofing. Academic and policy papers warn that AML/KYC mandates will tighten around DeFi in coming years; building the hook now avoids rushing retrofits later. (, )