DeFi

Compliance Blacklist

List of wallet addresses prohibited from holding or transacting a token due to OFAC sanctions, suspicious activity, or court orders. USDC (Circle) maintains a blacklist using SPL Token's freeze_authority. Token-2022's permanent delegate enables recovery from blacklisted accounts.

IDcompliance-blacklist

Plain meaning

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List of wallet addresses prohibited from holding or transacting a token due to OFAC sanctions, suspicious activity, or court orders. USDC (Circle) maintains a blacklist using SPL Token's freeze_authority. Token-2022's permanent delegate enables recovery from blacklisted accounts.

Mental model

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Think of it as a market mechanic used to price, route, or move capital through liquidity apps.

Technical context

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AMMs, routing, liquidity, lending, and trading infrastructure.

Why builders care

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Compliance Blacklist (compliance-blacklist)
Category: DeFi
Definition: List of wallet addresses prohibited from holding or transacting a token due to OFAC sanctions, suspicious activity, or court orders. USDC (Circle) maintains a blacklist using SPL Token's freeze_authority. Token-2022's permanent delegate enables recovery from blacklisted accounts.
Related: OFAC Compliance, Freeze Authority, Permanent Delegate, Compliance Whitelist
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Concept graph

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These branches show which concepts this term touches directly and what sits one layer beyond them.

Branch

OFAC Compliance

Compliance with US Treasury OFAC sanctions prohibiting transactions with designated individuals/entities. Circle blacklists sanctioned USDC addresses on-chain. Solana RWA protocols must screen wallets against the SDN list before whitelisting.

Branch

Freeze Authority

The pubkey authorized to freeze and thaw token accounts, preventing transfers. Set optionally at mint creation. When a token account is frozen, no transfers, burns, or closes can occur until thawed. Used for regulatory compliance (e.g., USDC) and security (freezing compromised accounts). Can be revoked by setting to None.

Branch

Permanent Delegate

A Token-2022 extension that designates an authority who can transfer or burn tokens from any token account of that mint, regardless of the account owner. Use cases include regulated stablecoins (clawback), gaming items (reclaiming), and legal compliance. Set at mint initialization and cannot be changed.

Branch

Compliance Whitelist

List of wallet addresses that have completed KYC/AML verification and are permitted to hold a security token. Maintained by issuer or transfer agent, checked on every transfer via Token-2022 transfer hook. Required for all regulated tokenized assets.

Next concepts to explore

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DeFi

OFAC Compliance

Compliance with US Treasury OFAC sanctions prohibiting transactions with designated individuals/entities. Circle blacklists sanctioned USDC addresses on-chain. Solana RWA protocols must screen wallets against the SDN list before whitelisting.

Token Ecosystem

Freeze Authority

The pubkey authorized to freeze and thaw token accounts, preventing transfers. Set optionally at mint creation. When a token account is frozen, no transfers, burns, or closes can occur until thawed. Used for regulatory compliance (e.g., USDC) and security (freezing compromised accounts). Can be revoked by setting to None.

Token Ecosystem

Permanent Delegate

A Token-2022 extension that designates an authority who can transfer or burn tokens from any token account of that mint, regardless of the account owner. Use cases include regulated stablecoins (clawback), gaming items (reclaiming), and legal compliance. Set at mint initialization and cannot be changed.

DeFi

Compliance Whitelist

List of wallet addresses that have completed KYC/AML verification and are permitted to hold a security token. Maintained by issuer or transfer agent, checked on every transfer via Token-2022 transfer hook. Required for all regulated tokenized assets.

Commonly confused with

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DeFicompliance-whitelist

Compliance Whitelist

List of wallet addresses that have completed KYC/AML verification and are permitted to hold a security token. Maintained by issuer or transfer agent, checked on every transfer via Token-2022 transfer hook. Required for all regulated tokenized assets.

DeFiofac-compliance

OFAC Compliance

Compliance with US Treasury OFAC sanctions prohibiting transactions with designated individuals/entities. Circle blacklists sanctioned USDC addresses on-chain. Solana RWA protocols must screen wallets against the SDN list before whitelisting.

AliasOFAC
Related terms

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DeFiofac-compliance

OFAC Compliance

Compliance with US Treasury OFAC sanctions prohibiting transactions with designated individuals/entities. Circle blacklists sanctioned USDC addresses on-chain. Solana RWA protocols must screen wallets against the SDN list before whitelisting.

Token Ecosystemfreeze-authority

Freeze Authority

The pubkey authorized to freeze and thaw token accounts, preventing transfers. Set optionally at mint creation. When a token account is frozen, no transfers, burns, or closes can occur until thawed. Used for regulatory compliance (e.g., USDC) and security (freezing compromised accounts). Can be revoked by setting to None.

Token Ecosystempermanent-delegate

Permanent Delegate

A Token-2022 extension that designates an authority who can transfer or burn tokens from any token account of that mint, regardless of the account owner. Use cases include regulated stablecoins (clawback), gaming items (reclaiming), and legal compliance. Set at mint initialization and cannot be changed.

DeFicompliance-whitelist

Compliance Whitelist

List of wallet addresses that have completed KYC/AML verification and are permitted to hold a security token. Maintained by issuer or transfer agent, checked on every transfer via Token-2022 transfer hook. Required for all regulated tokenized assets.

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DeFi

AMM (Automated Market Maker)

A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.

DeFi

CLMM (Concentrated Liquidity Market Maker)

An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.

DeFi

Liquidity Pool

A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.

DeFi

LP Token

A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.