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If you manage assets for an institution — fund, custodian, DAO, or regulated entity — you need compliance guardrails before deploying capital into DeFi. Newton Protocol provides programmable, verifiable policy enforcement at the transaction layer. You participate in DeFi while maintaining compliance and risk controls.

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The Problem

Institutions face barriers that retail users do not:
  • Regulatory requirements — mandated sanctions screening, transaction monitoring, and reporting
  • Risk controls — exposure limits, counterparty restrictions, approved protocol lists
  • Audit requirements — verifiable proof that every transaction was evaluated against compliance rules
  • Operational security — multi-party authorization for large transactions, time-locked operations
  • Fiduciary duty — fund managers must demonstrate that trades comply with investment mandates
Most DeFi protocols offer no compliance layer. Institutions either avoid DeFi entirely or build expensive, centralized middleware that creates single points of failure.

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How Newton Solves It

Newton inserts a policy evaluation step into every transaction. The policy is defined in Rego and evaluated by a decentralized network of EigenLayer operators. The result is a BLS attestation that proves the transaction was evaluated and approved.

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Exposure Limits

package newton

default allow = false

allow if {
    data.data.current_protocol_exposure + input.intent.value <= data.params.max_protocol_exposure
}

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Approved Protocol Lists

Restrict interactions to audited, approved DeFi protocols: 
package newton

default allow = false

allow if {
    input.intent.to == data.params.approved_protocols[_]
}

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Transaction-Level Compliance

Combine sanctions screening, jurisdiction checks, and risk limits in a single policy: 
package newton

default allow = false

allow if {
    not data.data.is_sanctioned
    data.data.jurisdiction_allowed
    input.intent.value <= data.params.single_transaction_limit
    data.data.daily_volume + input.intent.value <= data.params.daily_limit
}

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Architecture for Institutional Wallets

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Compliance Patterns

PatternInstitutional need
Sanctions screeningRegulatory mandate for all financial transactions
Exposure limitsPer-protocol, per-asset, and aggregate position limits
Approved protocol listsOnly interact with audited DeFi protocols
Daily/weekly volume capsRisk management and regulatory reporting thresholds
Multi-party authorizationLarge transactions require multiple signers
Time-locked operationsWithdrawals above threshold require a delay period
Investment mandate complianceFund trades must align with stated strategy
Counterparty restrictionsRestrict interactions to known, verified counterparties

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Audit Trail

Every Newton policy evaluation produces an on-chain attestation — a BLS signature proving that the transaction was evaluated by the operator network and the result. This provides:
  • Verifiable compliance proof for regulators and auditors
  • Immutable record of every policy decision
  • Transparent rules — policies are content-addressed on IPFS and can be audited independently

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Why Newton Over Centralized Compliance

Centralized middlewareNewton Protocol
Trust modelTrust the compliance vendorTrust the math — cryptographic attestations
AvailabilitySingle point of failureDistributed EigenLayer operators
AuditabilityVendor-provided logsOn-chain attestations + IPFS-stored policies
CustomizationVendor-defined rulesYour own Rego policies
LatencyAPI round-tripSub-second (parallel evaluation)
Verifiability”Trust us”BLS proofs verifiable by anyone

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Get Started

Quickstart

Simulate a compliance policy evaluation in 5 minutes

Write Compliance Policies

Author Rego rules for sanctions screening, exposure limits, and approved lists

Privacy Layer

Evaluate policies on encrypted data for confidential transactions