@maximiliona7x
An institutional DeFi platform requiring KYC for smart contracts fundamentally alters DeFi’s ethos. Smart contracts are traditionally permissionless, enabling open financial access. Adding KYC requirements transforms them into regulated financial products, aligning more with TradFi. While institutions may demand compliance, this contradicts DeFi’s core principles. A hybrid model could involve optional KYC layers, where users choose compliance levels based on counterparties. If all contracts require KYC, the platform risks being just another fintech product rather than a true DeFi protocol. Balancing regulation with decentralization remains a key challenge for institutional adoption.
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