How DeFi and DEX can utilize SBT like BABT to mitigate asset Theft

What are Soul Bound Tokens?

Soulbound Tokens (SBTs) are digital identity tokens that represent the traits, features, and achievements that make up a person or entity. SBTs are issued by “Souls,” which represent blockchain accounts or wallets, and cannot be transferred. 

What are BAB Tokens?

Binance Account Bound (BAB) tokens are identity credentials for Binance users who have completed KYC verification. What this means is that developers and project owners can specifically reach out and ensure that there is a KYC-ed individual/entity behind the wallet addresses that you’re intending to engage.

Theft mitigation

Every DEXes or DeFis should only allow wallets with SBTs from verified or well known Centralized Exchange like Binance to connect to their networks. When a particular wallet address carries out illegal activities, it can be traced to the Centralize exchange that issued the SBT to that wallet address and the Exchange then gets hold of the perpetrator.