Whitelist - Blacklist mechanism

To enable compliance and institutional access, Pi Protocol enforces a whitelist and blacklist system at the smart contract level. This system controls who can:

• Mint USP
• Receive or hold USI
• Interact with vaults or redeem collateral

The whitelist ensures that only approved addresses (e.g. KYC’d users, regulated entities, authorized participants) can access certain parts of the protocol. The blacklist prevents known bad actors or sanctioned addresses from interacting.

Governance holds full control over this system:

• USPi holders can vote to add or remove wallet addresses from the whitelist or blacklist.
• All changes are recorded on-chain and executed transparently.

This mechanism ensures that compliance can evolve with regulations without compromising protocol decentralization.

By embedding access control into token standards (USP, USI), Pi Protocol can support institutions, funds, or region-specific requirements—all through decentralized governance.