Skip to main content

0xProtect

As regulation becomes increasingly prevalent in crypto and DeFi, the need for transparent, common tooling to streamline compliance among ecosystem stakeholders grows. To address this, we introduce 0xProtect: a tool designed as a repository for OFAC SDN (Specially Designated Nationals) data, facilitating transparent compliance coordination.

Data Sources​

0xProtect, primarily serving block production participants (such as searchers, validators, block builders, and relays), employs a smart contract to keep an on-chain copy of OFAC's sanction list. This grants users permissionless access to the always-updated list, aiding in compliance with block production regulations.

Besides the smart contract, the sanctions list is also available in 2 other representations: a BigQuery table and JSON blob, facilitating other use cases such as compliance reporting and data analysis.

Transparent Registry​

We recognize that adherence to OFAC guidelines may not be a priority for all ecosystem participants. Our goal with 0xProtect is not to advocate or enforce compliance but to offer a transparent registry that informs our decisions on including or excluding certain transactions, bundles, and blocks. This registry can assist stakeholders in conducting due diligence according to their operational requirements.

0xProtect represents a pioneering effort in making transaction filtering requirements transparent and accessible through a smart contract. We've made the code open-source, encouraging transparency and community-driven enhancements.

How it Works​

OFAC maintains the SDN sanctions lists, accessible on their website. The process of adding or removing Ethereum addresses is at OFAC's discretion. To keep our representations current, we've developed a service (SLS) that checks OFAC's URLs hourly. Each data retrieval is verified against OFAC’s checksum page to ensure accuracy. After verification, Ethereum addresses are organized, deduplicated, and hashed to create a snapshot. This hash is compared with our representations (smart contract, BigQuery table and JSON blob), and any discrepancies lead to updates on said representations.

Staying Updated​

Using the Smart Contract​

End users of the smart contract can monitor synchronization events (see below) to stay informed about address additions or removals. The contract's logs also provide a continuous record of OFAC's modifications to the sanctions list.

The events of interest are as follows:

/// @notice Event emitted when an address is added to the blacklist
event Blacklisted(address indexed _account);

/// @notice Event emitted when an address is removed from the blacklist
event UnBlacklisted(address indexed _account);

Using BigQuery​

For data analysts, having the blacklist in BigQuery enables the cross-referencing of public execution layer data, offering insights into the inclusion of sanctioned addresses by builders or in blocks.

Our example view demonstrates how to identify sanctioned addresses in transactions, including their token transfers or traces.

For reference, here is an example query to show matches on from_address and to_address at the transaction level:

select  coalesce(b.name, bt.coinbase) as builder,
        bt.block_hash,
        bt.block_number,
        bt.block_timestamp,
        bt.`hash` as transaction_hash,
        bt.coinbase,
        from_address,        
        fa.address is not null as from_match,
        to_address,
        ta.address is not null as to_match
from `zerox-protect.public.transactions` bt
left join `zerox-protect.public.builders` b on b.address = bt.coinbase
left join `zerox-protect.public.blacklist` fa on fa.address = from_address
left join `zerox-protect.public.blacklist` ta on ta.address = to_address
where block_timestamp > timestamp_sub(current_timestamp(), interval 7 day)
order by block_timestamp desc;

Using the API​

For users that just want the updated blacklist as a json blob, just query the /blacklist endpoint. Here is an example javascript call to the api:

const apiUrl = 'https://blacklist-api-vvhrqyzuiq-uc.a.run.app/blacklist';

fetch(apiUrl)
    .then(response => {
        if (!response.ok) {
            throw new Error('Network response error');
        }
        return response.json();
    })
    .then(data => {
        console.log('API Response:', data);
    })
    .catch(error => {
        console.error('There was a problem with the fetch operation:', error);
    });

The response:

[
    "0x01e2919679362dfbc9ee1644ba9c6da6d6245bb1",
    "0x03893a7c7463ae47d46bc7f091665f1893656003",
    "0x04dba1194ee10112fe6c3207c0687def0e78bacf",
    "0x05e0b5b40b7b66098c2161a5ee11c5740a3a7c45",
    "0x07687e702b410fa43f4cb4af7fa097918ffd2730",
    "0x0836222f2b2b24a3f36f98668ed8f0b38d1a872f",
    "..."
]

Disclaimer​

This tool has not undergone third-party auditing. Any party that chooses to interact with it does so at their own risk and discretion.

Eden Network does not provide any warranties or guarantees regarding the use of this tool and declines any liability or responsibility that may result from non-compliance by the user.