Haven1 Litepaper
Overview of the most important concepts behind Haven1.
Last updated
Overview of the most important concepts behind Haven1.
Last updated
The current landscape of blockchain security is complex and rapidly evolving. Despite significant advancements in the underlying technology, there remains a lack of clarity and consensus on the best approach for securing and decentralizing networks.
The requirement for participants to interact with anonymous counterparties and nascent smart contract technology without access to standardized modes of remediation or quality assurance, has created a playground fraught with hacks, scams and rug pulls resulting in billions of dollars worth of assets lost, and limited ability to attract retail, professional and institutional capital in a safe and scaleable way.
Without a concerted effort to address these challenges, the potential for blockchain technology to transform the underpinnings of most industries, will not be fully realized.
Most decentralized applications (dApps) built on permissionless blockchains involve financial transactions where digital assets change hands, creating opportunities for malicious actors to exploit user funds.
A more secure blockchain ecosystem that enforces robust security standards and mitigates risks can foster broader adoption by retail, professional, and institutional users who are otherwise deterred by today’s vulnerabilities.
Inability to effectively create and maintain enforced security standards on protocols
Unknown, unidentifiable counterparties
Weak governance structures
As more solutions move toward Layer 2s and Rollups, new risks emerge. Some L2 implementations still rely on unproven sequencer technology that may introduce security and centralization concerns if not properly designed.
In order to solve the aforementioned problems, while maintaining decentralization, a blockchain ecosystem must be able to enforce security standards both prior to transactions reaching the network, but also within the consensus mechanism of the network itself.
A public-permissioned, proof-of-authority blockchain ecosystem built on battle-tested technology. Decentralizing the network through a diverse set of reputable third-party validators ensures network security while maintaining decentralization.
Haven1 is a public-permissioned, EVM-compatible, Proof-of-Authority (PoA) blockchain ecosystem that provides a secure and trusted environment where verified users can connect with vetted onchain applications and interact without fear of hacks, scams, or exploits.
All users and builders must go through a proprietary anonymized, yet verifiable identity verification process (KYC/KYB) wherein they must mint and hold a valid hPassport in their wallet to transact on Haven1. This ensures an ecosystem with verifiable counterparties and enhanced transparency.
The handling of sensitive information and the protection of user privacy are paramount, particularly regarding financial transactions. To this end, specific user details are not recorded on the blockchain. Instead, only the results of identity checks (i.e., verified or unverified) are stored, enhancing privacy while maintaining transparency and trust in network operations.
Prior to deployment, all builders of smart contracts on Haven1 must submit two (2) verified, third-party audits from Haven1's approved auditor list.
To ensure the audits have been completed and no code has been changed, all smart contracts are diff-checked against the audits and deployed in a permissioned manner on behalf of the builder.
As a permissioned blockchain, all remote procedure calls (RPCs) are permissioned, allowing Haven1 to enforce two-factor authentication (2FA) at the network level. This enables users to opt into standard 2FA protections, securing assets against private key and seed phrase theft. A feature rarely seen on other networks today.
Recovery can be completed in conjunction with verifiable identity using hPassport.
Haven1 also collaborates with dedicated third-party partners to offer additional wallet services, such as:
Multi-signature wallets for institutions or businesses managing capital onchain
Rule- and anomaly-based transaction monitoring and flagging to prevent unauthorized fund movements
In partnership with dedicated onchain threat and anomaly detection providers (i.e., Network Guardians), AI-powered bots actively monitor the network 24/7, including:
Transaction Analysis: Monitoring network transactions for signs of malicious activity such as double-spending or high gas fees.
Smart Contract Monitoring: Identifying vulnerabilities like reentrancy attacks.
Price Manipulation Surveillance: Detecting manipulation within DEXs or oracle services to maintain asset pricing integrity.
Flash-Loan Attack Prevention: Recognizing large-scale, rapid transactions that indicate market manipulation.
Event and Call Trace Analysis: Reviewing smart contract-generated events to identify irregularities or malicious activity.
At blockchain genesis, Haven1 will designate nine (9) highly reputable and globally trusted businesses as the Validator Partner Council. Each validator will undergo a rigorous screening process to ensure they are trusted, reputable, and capable of executing the necessary functions to validate transactions on Haven1.
These entities, recognized for their reliability, are responsible for ensuring the security, stability, and integrity of the network. Validators receive network-based incentives for securing transactions, supporting governance functions, and ensuring operational integrity.
Reliable Network Operations: Validators are committed to ensuring seamless transactions and network stability by validating blocks and maintaining high-performance infrastructure
Active Protection: Strengthening security and fraud prevention by monitoring network activity and safeguarding users against threats.
Institutional Grade Standards & Trust: Bringing well-established operational standards, internal controls, and multiple layers of oversight to ensure fair, transparent, and accountable network operations & governance. Validators serve as independent safeguards within the governance framework, with limited override authority that may be exercised only if a simple majority of validators deem a proposal to be malicious, a threat to network integrity, or detrimental to long-term sustainability.
Network Growth & Adoption: Supporting ecosystem expansion by integrating industry expertise, fostering strategic partnerships, and enabling real-world use cases on Haven1.
This rigorous selection and screening process significantly mitigates the risk of malicious behavior on the network and ensures that Haven1’s validators remain committed to maintaining security and trust.
In the interest of transparency, all validators on Haven1 will be publicly verifiable, allowing anyone to confirm their role and track their performance on the network while maintaining appropriate privacy protections.
This rigorous selection and screening process significantly mitigates the risk of malicious behavior on the network and ensures that Haven1’s validators are committed to maintaining the security and integrity of the network.
Lastly, Validators are aligned to build real-world applications and use cases on Haven1, often furnishing business cases to get selected as a validator.
One of the most unique features of Haven1 is that Validators collectively manage access to the secure Haven1 bridge, ensuring that no single entity has unilateral control over network entry or exit. This distributed governance mechanism is a cornerstone of Haven1’s decentralized design.
A common misconception in the blockchain community is that the more validators a network has, the more “decentralized” it must be. This oversimplification overlooks the complexities of how these networks are managed and governed.
For example, many Layer 2 (L2) solutions, often perceived as decentralized because of the underlying Layer 1 blockchain they are built on, are ironically controlled by a single, centralized sequencer in a permissioned manner, creating centralization risk. Even some of the more prominent L1 networks that claim to be Proof-of-Stake (PoS) often rely on Delegated Proof-of-Stake (DPoS) to achieve scalability. This results in a scenario where a small group of entities, typically around 15-20, control the majority of the network’s validation power.
Haven1 adopts a permissioned Layer 1 (L1) approach to enhance security and enforce network-level protections without sacrificing decentralization. By controlling network access through permissioned RPCs, Haven1 enables advanced features like gasless transactions and enforced smart contract audits, which are otherwise difficult to implement on fully permissionless ecosystems. Instead of a central entity, network access and bridging are collectively managed by nine (9) distinct validators, ensuring no single entity has unilateral control over the network. This approach decentralizes risk and significantly mitigates centralization concerns.
The short answer is no, and here’s why.
"no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset."
With nine (9) validators managing network access, this ensures that control is at a minimum 1/9 (~11%), which is materially under the 20% threshold.
The validator set has the flexibility to vote in additional, reputable validators as needed. This ensures that the network remains adaptable, secure, and scalable through governance-driven expansion.
In fact, this has already happened. The original plan was to launch with seven (7) validators (~14% threshold), but due to a strong influx of validator applications from Tier 1 businesses, the validator committee has already voted to onboard two (2) additional validators!
Proof of Authority (PoA) is a consensus mechanism that emphasizes the value of identity and the reputation of block validators. In Haven1’s network, validators process transactions similarly to other PoA networks while leveraging hPassport technology to enhance verification within network operations.
During the transaction process, validators perform a vital task by verifying the user’s wallet address against anonymized, on-chain validation data. This step is essential in upholding network integrity and reinforcing user trust.
The process implements strong security measures to reduce the risk of unauthorized activity on the Haven1 blockchain, ensuring a reliable and trusted network environment.
A key challenge with existing cross-chain network implementations is the reliance on automated bridging solutions. As many bridges implement experimental code—often to expedite settlement—the potential for capital losses due to smart contract failures and exploits remains high.
Haven1 addresses this challenge by partnering with established, reputable entities to ensure that every asset within Haven1 is designed to be transparently backed 1:1 by the corresponding underlying asset, ensuring redemption mechanisms remain accessible under normal conditions.
This enables users to utilize cold storage solutions within the Haven1 ecosystem for added protection, introducing an additional layer of security against hacks and exploits.
Further security enhancements can be applied to withdrawals when anomalies are detected. Measures such as time-based withdrawal waiting periods, two-factor authentication, and liveliness tests introduce additional safeguards by providing a challenge window for network validators to identify malicious behavior.
Haven1 token holders participate in decentralized governance, contributing to key protocol decisions through voting rights. They can engage in important proposals that impact the operation and development of the network, ensuring alignment with community interests.
Governance participation includes decision-making on key parameters and development aspects of three core network-native protocol applications: an automated market maker, a money market, and a derivatives platform.
Haven1 token holders contribute to governance decisions that shape the ecosystem and its development, ensuring alignment with the broader network vision.
The Haven1 token is used for governance, security, and network operations, supporting a seamless and efficient ecosystem.
A unique feature of the Haven1 blockchain is the introduction of an application-specific transaction fee. Asset transfers between accounts will have no charge, whereas interactions with applications, such as swapping an asset on an automated market maker, will incur an application fee.
These fees create a more transparent and developer-friendly ecosystem, ensuring accessibility and sustainability for all participants. Rather than encouraging developers to design inefficient gas contracts to extract value from users, Haven1's application fee model allows builders to set a fixed dollarized fee, paid in $H1.
This decouples builders from the volatility of gas fees and token price while offering multiple benefits, including:
Developer Autonomy: Developers have the flexibility to set their fees, tailoring pricing strategies to their application's value proposition and target audience.
Sustainable Development: Developers can establish sustainable business models, supporting ongoing development and innovation.
Ecosystem Health: These fees contribute to the ongoing maintenance, security, and operational efficiency of the Haven1 network.
Haven1 introduces a unique model where the core protocols are governed by the Haven1 community (i.e., network participants), addressing key liquidity and availability challenges in the Web3 space while ensuring the $H1 token remains central to network operations and governance.
Haven1’s infrastructure is designed to create a sustainable and self-sufficient ecosystem where DeFi applications drive network growth and adoption.
The purpose of Haven1 Governance is to provide a decentralized mechanism for making decisions and proposals that shape the operation and development of the Haven1 network. Haven1 token holders can participate in governance decisions that shape the network’s future, ensuring an inclusive and transparent decision-making process.
Governance decisions require validator approval to ensure alignment with the network’s security and stability goals. This structured approach ensures that any changes made to Haven1 reinforce its mission of providing a secure environment for on-chain finance.
The Haven1 governance model is designed to allow the network to adapt and evolve in response to changing conditions. As Web3 infrastructure evolves, the governance structure can implement modifications to maintain network efficiency, security, and usability.
In addition to decision-making, Haven1 governance facilitates the proposal and implementation of new features and upgrades. Token holders may vote on network improvements, such as expanding supported applications or refining existing infrastructure. This process allows Haven1 to continuously enhance its platform, ensuring a robust and secure ecosystem for on-chain finance.
At its core, Haven1 governance ensures the network remains user-driven, maintains safeguards for asset security, and integrates checks and balances to reinforce the integrity of the ecosystem.
A key benefit of Haven1’s provable identity framework (hPassport) is that developers can access verified identity data to unlock new Web3 use cases that are not currently possible on decentralized platforms.
Builders can leverage hPassport to integrate real-world credit scores into on-chain lending markets, similar to traditional loan risk management systems. This approach enables trusted lending practices without requiring full collateralization, expanding accessibility while maintaining security.
Integration with Real-World Assets
Haven1 cost-effectively facilitates the integration of real-world assets where proof of identity is required. This includes investment vehicles backed by real estate assets, leveraging non-fungible tokens (NFTs) to represent ownership rights.
Tokenized real-world assets can be exchanged and settled efficiently in a global environment, enabling new financial applications within a their own business framework.
Verified users who meet regulatory requirements can interact with regulated tokenization platforms that offer tokenized money market funds and other real-world assets (RWAs). Users can leverage DeFi looping strategies, such as borrowing and lending, to optimize capital allocation securely within Haven1.
Compliant Prediction Markets Out-of-the-Box
The prediction market sector has strong potential in Web3 but faces compliance challenges due to age restrictions and country-specific regulations.
Ensuring compliance is complex and often requires extensive verification processes. Traditional methods pose privacy risks and increase operational costs. As a result, many prediction markets struggle to operate legally and efficiently.
The hPassport enables seamless, privacy-preserving verification of users' age and country of residence, removing the need for complex KYC integration. This ensures that prediction markets can comply with legal boundaries while maintaining a frictionless user experience.
More Flexible Business Models for Gaming The gaming industry has been an early Web3 adopter, but most games rely solely on NFT sales for monetization. Many developers lack the resources to build complex financial smart contracts, making scalable monetization difficult.
Haven1’s application fee model allows developers to define transaction-based pricing structures, enabling new business models such as subscription-as-a-service, in-game purchases for extra lives or perks, and premium content unlocks.
Large gaming studios already have financial teams that can develop such models, but this approach empowers developers of all sizes to monetize from day one.
Haven1’s gasless network allows developers to subsidize user transactions for certain application-level interactions, enabling freemium business models that are cost-prohibitive on other blockchains.
Haven1 connects professional investors to on-chain finance, supporting efficiency and innovation while prioritizing security and responsible on-chain finance.
Built for all, but structured to provide the necessary frameworks and guardrails for institutional and professional adoption, Haven1 is designed to support a secure, efficient, and trusted ecosystem that aligns with institutional-grade security and compliance standards.
The global market capitalization of traditional financial assets is several hundred trillion dollars. By removing barriers to institutional participation in Web3 and addressing key security and compliance challenges, Haven1 creates new opportunities for broader adoption of on-chain finance.
Only verified builders can deploy on Haven1. Every hApp undergoes two independent audits before launch, ensuring all smart contracts are thoroughly reviewed. We prioritize quality over quantity for financial applications.
Haven1 is secured and validated by world-renowned brands, ensuring trust and reliability. Proprietary multi-signature consensus technology ensures that no single entity controls network access, while permissioned RPCs protect data sent to the network.
Nine initial validators enable the economics of a gasless network, supplemented by application fees, to scale for both public and private infrastructure needs.
Swap, Lending, and Perpetuals are native to Haven1, governed by the community, and built to enhance network functionality and utility within the Haven1 ecosystem.
Proprietary liquidity technology aggregates liquidity from multiple sources to provide competitive pricing and deep market access while ensuring self-custody of assets.
The Haven1 Association (“Association”) is a crucial component of the Haven1 network. It is a neutral entity supporting the continued adoption and development of the network.
One of the key responsibilities of the Association is to engage in outreach activities. This includes working with the broader blockchain and Web3 communities to raise awareness and educate potential users about the benefits and features of Haven1. The Association also collaborates with developers, businesses, and organizations to facilitate integration and expansion of the Haven1 ecosystem.
In addition, the Haven1 Association may offer resources and funding opportunities to developers building on the Haven1 network. This includes potential funding and technical support to help developers create new protocols, applications, and innovations on the network. The Association also provides guidance, mentorship, and other forms of support to help developers succeed.
As one of the initial genesis validators, the Haven1 Association contributes to network operations and security in collaboration with other validators. Its involvement helps align the network with global best practices and ensures ongoing integrity and efficiency.
Haven1 governance may vote on allocating a portion of application fees to a managed reserve fund designed to support mechanisms at the network level.
When you look at important bills like, it defines "decentralization" as:
Beyond decentralizing access to reputable validators, Haven1 employs a combination of cryptographic attestation for digital assets stored in the and a corresponding audit of user liabilities. This method enables users to utilize existing assets from a variety of alternative blockchains, provided they are whitelisted for onboarding and reviewed by the Haven1 community.
Adaptive Fee Structure: Haven1's manages these fees dynamically, ensuring adaptability based on network usage and evolving application needs.
