What is the compliance logic for most blockchain projects? Build the product first, and then scramble to patch things up when regulators come knocking. This approach is not only clumsy, but also turns automated finance into an uncontrollable gamble.

But there’s a project called Kite that takes the opposite approach: from the very beginning, it engraves the rules into the underlying architecture. This way, the robots and AI agents responsible for executing transactions operate within a strict framework, instead of running wild like untamed horses.

Simply put, it’s “giving robots a manual they’ll actually follow.”

What does this shift mean? When smart contracts are equipped with embedded identity verification and risk control modules, automated finance can finally move from being an experiment to reliable infrastructure. Regulation is no longer a headache to deal with after the fact, but a guardrail built into the design phase.

Perhaps this is the right way to bring DeFi into the mainstream—don’t wait for things to go wrong before fixing them; set the rules from the very start.