Privacy DeFi has recently introduced a new solution worth paying attention to. The main idea is as follows: during on-chain interactions, users' input data, contract states, and execution processes are protected and not fully exposed.

But there is a key point here — it is not a purely anonymous solution. What does that mean? It means that trading counterparts can be identified, and information can be disclosed according to policy requirements when necessary. This finds a balance between privacy protection and regulatory compliance.

In simple terms, it uses proof mechanisms to verify the authenticity of transactions, allowing users to enjoy privacy protection without being completely outside regulatory oversight. This approach could serve as a good reference for DeFi projects aiming for compliant operation.