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Solana Programs

PayWithZ uses three core Anchor programs deployed on Solana that enforce compliance at the blockchain protocol level.

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Program Overview

Compliance Hook

Enforces compliance on every transfer

SBT Manager

Issues and manages KYC tokens

Issuer

Mints and redeems stablecoins

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Compliance Hook Program

The Compliance Hook program is the core innovation of PayWithZ. It automatically runs on every token transfer.

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How It Works

  1. User initiates transfer
  2. Solana automatically calls Compliance Hook
  3. Program verifies:
    • ✅ Sender has valid SBT
    • ✅ Receiver has valid SBT
    • ✅ Not on blacklist
    • ✅ Passes velocity limits
  4. Transfer proceeds only if all checks pass
This cannot be bypassed - Transfer hooks are enforced by Solana at the protocol level. No transaction can complete without going through the compliance check.

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Key Functions

SBT Verification

Verifies both sender and receiver have valid SBTs

Blacklist Check

Checks against Merkle tree-based blacklist

Velocity Limits

Enforces transaction amount and frequency limits

Policy Enforcement

Applies custom risk rules and policies

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SBT Manager Program

Manages KYC Soulbound Tokens (SBTs) - non-transferable identity tokens.

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Key Functions

Issue SBT

Issues SBT to verified wallet after KYC

Store KYC Hash

Stores cryptographic hash of KYC data on-chain

Revoke SBT

Revokes SBT if compliance fails

Expiry Management

Handles SBT expiry and renewal

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SBT Characteristics

  • Non-Transferable: Bound to wallet, cannot be sent
  • Contains KYC Hash: Proof of identity verification
  • Required for Transfers: All transfers check for SBT
  • Revocable: Can be revoked by admin

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Issuer Program

Handles stablecoin minting and redemption operations.

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Key Functions

Mint Tokens

Mints stablecoins after fiat deposit verification

Redeem Tokens

Burns stablecoins for fiat withdrawal

Supply Management

Tracks and manages total stablecoin supply

Authority Control

Enforces authority controls for minting

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Token-2022 Integration

PayWithZ uses Solana’s Token-2022 program with transfer hook extension:

Transfer Hooks

Enables automatic compliance checks on every transfer

Extensions

Uses transfer hook extension for compliance enforcement

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Program Deployment

All programs are deployed on Solana testnet:
  • Compliance Hook: AqzjJ8mxQdHYD4r64qvU1dBfA4zbMh4CPb9zCYTmUDeH
  • SBT Manager: 3LnG9zZt4y8Z9A2JS6jQ6EqZL4KPVS2RsLnE2Kv9UGCT
  • Issuer: Aax14U5pH8KQ7GWRUdDBqZavppZCxjEWEuu41GZMWhtV
All programs are verified on Solana Explorer and can be viewed on-chain.

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Security Features

Program Upgradability

Controlled by admin multisig

Authority Control

Secure authority management

On-Chain Verification

All code verifiable on-chain

Audit Trail

Complete on-chain transaction history

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Next Steps

Architecture

Understand the complete system design

Compliance

Learn how compliance enforcement works