One of the standout features of the Dusk Network is its support for institutional-grade DeFi tools, like lending platforms and automated market makers (AMMs). This setup allows banks and regulated investors to access decentralized finance while maintaining privacy and full legal compliance—something traditional DeFi platforms often struggle with.
Lending and borrowing on Dusk require Citadel ID verification, ensuring only approved participants can interact with the protocols in line with KYC, AML, and local regulations. Lending contracts manage collateral, interest, and payment schedules while verifying eligibility before any transfer occurs.
Dusk’s dual transaction system enhances DeFi privacy and transparency. Phoenix transactions allow confidential lending deals, keeping amounts, interest, and collateral private for participants and auditors. Moonlight transactions provide transparency when reporting or monitoring is required, balancing privacy with regulatory obligations.
AMMs on Dusk leverage smart contracts within a modular design. Using DuskEVM or WASM-based execution, institutions can trade tokenized assets, while DuskDS ensures settlement, verification, and cryptographic security. Pools can hold tokenized real-world assets, allowing participants to add liquidity without exposing their full positions.
Cross-layer coordination is handled by the network’s native bridge, keeping balances, transactions, and collateral consistent between DuskDS and DuskEVM while preserving privacy and regulatory compliance. This enables advanced DeFi setups, such as margin lending or tokenized security swaps, without operational or legal risk.
The Rusk Universal Event System (RUES) tracks every lending action, collateral adjustment, and AMM swap, creating verifiable events for auditing, reporting, and oversight. Institutions can monitor activity while keeping sensitive data confidential.
SDKs and wallet APIs make managing lending contracts, interest, and AMM swaps straightforward. Dashboards or wallets can handle operations efficiently, ensuring reliability and auditability—essential for institutional adoption.
Institutional DeFi on Dusk also opens the door to innovative financial products. Developers and institutions can create regulated pools, tokenized lending solutions, and structured AMMs that embed privacy and compliance into their design. This makes the network attractive to banks and other regulated players who want to engage in DeFi safely.
In short, Dusk bridges traditional finance and decentralized finance by combining privacy, compliance, reliable settlement, and automation. Lending, AMMs, and related DeFi tools run securely and legally while leveraging blockchain efficiency and cryptographic guarantees, providing a robust foundation for modern institutional financial services.
