Predicate chief executive Nikhil Raghuveera explains that liquidity pools can apply different rules to each user based on IP address, accreditation status or any other on-chain or off-chain data point.

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It could be literally anything. That includes onchain or offchain data.

“You might have a pool that enforces different rules for different users that could be based on their IP [or] on accreditation or some other kind of entity status,” Raghuveera told Blockworks.