This article introduces Predicate as the programmable compliance policy execution layer of DeFi, detailing how it implements asset-specific rule execution through Uniswap v4 hooks, supporting compliance and composability. The article mentions that the large-scale outage of Google Cloud on June 12, 2023, affected multiple services including OpenAI, while TRM Labs’ blockchain compliance services were also down for nearly 12 hours due to a Salesforce outage. Predicate allows users to switch to another compliance provider in the event of a provider's outage through a modular architecture, ensuring the continuous operation of the policy layer. Taking Paxos's USDL stablecoin as an example, Predicate helps implement geofencing and compliance requirements while maintaining compatibility with Uniswap. Predicate emphasizes the composability and resilience of the policy layer, adapting to the compliance needs of different jurisdictions and promoting the development of institutional-grade DeFi.
