👮‍♀️Policy Engine Program

Overview

The Policy Engine Program (PEP) is an on-chain policy enforcer to be used, in conjunction with ACP and IRP to enforce identity-level restrictions to actions including token transfers and transaction limits. The PEP extends the transaction approval mechanism (which previously included creating an identity account on-chain and using the Identity registry to generate approvals, but required calling the creator’s backend) to include a variety of identity verification levels and bring transaction approval completely on-chain.

There is support for the following four transaction policy types which can all be scoped to a specific identity group.

Identity Approval Policy

An identity approval policy, checks if the sender and receiver have the right permissions to send and receive the asset.

Example of a Token Transfer with a Identity Approval Policy

Transaction Policies

Transaction Policies are transfer policies that limit the amount, size, and velocity of transactions. They work together and in conjunction with the identity approval policy and identity filter to ensure secure and compliant transactions within the system.

Example of a Token Transfer with a Transaction Amount Limit Policy

Transaction Amount Limit

A transaction amount limit caps the amount a user can send via a single transaction.

Transaction Count Velocity

A transaction count velocity puts a limit on the amount of unique transactions that can be sent from a single address for a given time frame.

Transaction Amount Velocity

A transaction amount velocity puts a limit on the amount a user can send in token size in a given time frame.