Pine protocol is designed to be decentralized and permissionless and hence the protocol does not obtain or keep any KYC information on its users. To the protocol, lenders and borrowers are merely wallet addresses on the blockchain.
Pine protocol works with reputable blockchain address screening service providers to help its users in mitigating risk of dealing with high risk addresses, i.e. ones that are sanctioned or involved in criminal activities. Lenders and borrowers with blockchain addresses that have been verified to be low-risk can choose to transact only with other users with low-risk addresses on the protocol.
Specifically on the lenders’ side, the segregated pool design of the Pine protocol does effectively lower risks for lenders. As every lender must set up and operate their own segregated pool, their asset is never commingled with other lenders. This drastically reduces compliance and regulatory risk for lenders on the Pine protocol as compared to some of the other NFT-backed loan protocols or platforms.