[EXAIP-26] Launching Exactly Protocol on Base with KYC

Voting ended 3 months agoSucceeded

Proposal ID: EXAIP-26 Proposer: Exa Labs Date: November 01, 2025

Summary

This proposal seeks governance approval to deploy the Exactly Protocol on Base, including a KYC-enabled version to meet institutional and regulatory requirements.

It also introduces:

Support for USDC, WETH, cbBTC, and cbXRP
Asset-level collateral caps to limit exposure per asset
Deployment of the EXA token on Base via LayerZero
Routing of Base treasury fees to the existing staking rewards program on Optimism

Motivation

This proposal aims to expand Exactly’s reach by enabling compliant access to institutional users through KYC verification while maintaining decentralization and transparency.

Deploying on Base (Coinbase’s Layer 2) offers:

Lower gas costs and faster UX
Access to a large, verified user base
Integration with Uphold and future partners requiring compliance

This deployment aligns with the roadmap defined in EXAIP-21 and strengthens the DAO’s sustainability through multi-chain revenue distribution.

Specification

1. Network Deployment

Chain: Base
Protocol Version: Exactly Protocol (KYC-enabled)
Compliance Layer: Integrated KYC verification

2. Supported Assets and Parameters

Risk Adjustment Factor per asset: USDC: 0.91 WETH: 0.86 cbBTC: 0.78 cbXRP: 0.60 (with an initial Collateral Cap of $1,000,000)

The Risk Adjustment Factor defines the maximum percentage of collateral value that can be borrowed against, following Exactly’s standard risk model.

3. Collateral Caps

To prevent concentration risk, each supported asset will have a maximum aggregate collateral limit. Once a cap is reached, new deposits for that asset will no longer be considered as collateral. This cap can be increased by governance in the future.

4. KYC Process

The KYC mechanism provides regulatory compliance while maintaining user privacy and self-custody. Only pre-approved partners (allowers) will have the power to add users to the allowlist, and they will also have the power to revoke access to the protocol for the users they have allowed.

Partner approval for the role of allower Entities that wish to be included as allowers and have the authority to add users to the allowlist, thereby interacting with the protocol, must undergo a series of audits conducted by the existing allowers and then be approved by the DAO.
User Verification
The user completes a verification flow as set by an allower. Checks include identity verification, sanctions screening, and residency validation.
Allowlisting Once the KYC process is approved, the allower will include the user in the allowlist, granting them the power to interact with the protocol.
Access Control
The protocol verifies the presence of a valid KYC credential before allowing interaction with the KYC-enabled markets.
Privacy & Compliance
- No personal data is stored or visible on-chain.
- Verification data remains solely with the provider.
- Partners can integrate via an Exactly KYC endpoint for seamless onboarding.
Removal of the allowlist The allower has the right to revoke the permissions granted to a user who they initially allowed to access. In the case that this happens: The existing debt of the user will be repaid with their own assets without penalty. The liquidator can trigger this forced repayment and must also be allowlisted. The assets that are not used to repay the debt will be locked. If the user is allowed to interact with the protocol again in the future, the assets will be unlocked. This decision is not final and can be revoked by the allower.

This flow ensures compliance, privacy, and interoperability across institutional partners.

5. EXA Token on Base

The EXA token will be bridged to Base via LayerZero.
No new tokens are minted; total supply remains constant across chains.
Governance rights remain unified across deployments.

6. Treasury Fees Distribution

All treasury fees generated on Base (interest spreads, liquidations, etc.) will be transferred periodically to the Exactly DAO Treasury on Optimism.

These funds will flow into the existing staking rewards program (stEXA), ensuring unified incentives and alignment between users, stakers, and the DAO across chains.