Many DeFi users have been stuck on a difficult problem—wanting to use new project features but not wanting to upload ID cards and facial photos. This "privacy vs. compliance" dilemma can be really frustrating.

Lista DAO's recently launched layered privacy-preserving KYC mechanism is one of the most user-friendly solutions I've seen for ordinary users. Traditional DeFi projects are either too crude or too permissive—forcing you to submit all personal information or ignoring it altogether, which increases compliance risks when handling large transactions, cross-chain operations, or accessing off-chain services.

The layered KYC approach is completely different. Basic functions like slisBNB exchanges and basic voting can be used without any verification, no need to submit personal information. For advanced features—such as cross-chain large transfers or CBDC payment integrations—only lightweight verification is required, completing identity checks through distributed nodes, and your documents are not uploaded to the project servers during the process. For special functions involving institutional cooperation, full compliance verification is required.

A more user-friendly aspect is that all verification data is stored locally in encrypted form. You can delete your information at any time, truly maintaining control. For crypto users, this design—protecting privacy while enabling compliant services—is much more practical than simply stacking features. This is the attitude a DeFi project should have.