# Circle Bullish on Chargeback Tokens Source: https://twitter.com/jerallaire/status/1731630035486843346 Kiwi News: https://news.kiwistand.com/stories/Circle-Bullish-on-Chargeback-Tokens?index=0x65701bdaf23ef95353e71c79a2b93b12c35025deb2aa7d0cc83d23f6a27a1c21993f6d5d Submitted by yacek.eth on 2023-12-06 UTC, 2 upvotes, 0 comments ## Summary Circle Research and Stanford's Applied Cryptography Group introduced two open source projects, a Recoverable Token standard and R-Pools, to address theft and the lack of reversibility in on-chain payments. The article says that between 2021 and 2023, close to $10B was stolen in illicit theft and attacks on blockchain-based financial systems. The Recoverable Token standard enables transfers to be revoked through configurable mechanisms for commerce and DeFi, while R-Pools, proposed by Circle and Stanford at the ACM-CCS conference, act as an insurance and liquidity model where token holders can redeem through an insurance pool. Circle says it is optimistic that developers will build safer on-chain financial products. ## Article Circle launches open source protocols to address on-chain theft and risks of illicit finance Circle Research, along with Stanford's Applied Cryptography Group, introduced two new open source projects that seek to address issues that plague the use of blockchains. TLDR below: Between 2021-2023, close to $10B has been stolen in illicit theft and attacks on blockchain-based financial systems. The irreversible nature of digital bearer assets and the relative immaturity of governance around smart contract safety have left millions of people exposed to severe losses. In another vein, the adoption of on-chain payment methods such as stablecoins for commerce has been limited by the lack of reversibility in transactions, a key feature of modern payment systems and critical in a world that's rife with online fraud or even simply customers receiving the wrong or deficient products or services. Fortunately, blockchain networks offer a compute surface to innovate, and through that it's possible to invent new and complementary protocols to the base layer of money transmission. Based on earlier research at Stanford, as well as ongoing collaboration with Circle, we've published two new projects. The first is a detailed Recoverable Token standard that enables transfers to be revoked through a variety of configurations that can suit both commerce and DeFi scenarios. https://www.circle.com/blog/a-configurable-and-programmable-wrapper-mechanism-for-recovering-erc-20-tokens You can read and learn more about this via: - The Whitepaper - https://www.circle.com/hubfs/Circle%20Research/Whitepapers/Recoverable_Wrapper_Tokens_Circle_Research.pdf - The Github Repo - https://github.com/circlefin/recoverable-wrapper In addition to this, Circle and Stanford together proposed at the ACM-CCS conference last week a model for "R-Pools", which are effectively an insurance and liquidity model for Recoverable Tokens, enabling a holder of a Recoverable Token to redeem via an insurance pool. An overview can be found here: https://www.circle.com/blog/decentralized-insurance-rpools-for-recoverable-wrapper-tokens Whitepaper: https://dl.acm.org/doi/pdf/10.1145/3605768.3623542 Github: https://github.com/circlefin/recoverable-wrapper/tree/master/contracts/rpool Why's all of this so interesting and important? Stablecoin payments are often compared to card network payments, where one can argue that card networks offer reversible transactions and insurance against fraud. We have long held that the open and programmable nature of digital currency money on blockchain networks would spawn solutions to these problems, but ones that can be adopted for the vast array of on-chain financial and commercial use cases, not just retail payments. Here, we're beginning to see more of the building blocks emerge. With these open source project launches, @circle is optimistic that developers will be able to start building safer on-chain financial products and servcies at global scale.