DeFi market structure, onchain credit and where finance is going | success @avon_xyz | underwater @10b57e6da0 đŚ full time observer of market delusion.
Accountable marketed itself into these controversies because they collapsed two completely different things into one, theyâve blurred the lines between âthis data is authenticâ and âthis protocol is solventâ, so Iâm not surprised theyâre being blamed for a lot of this.
They can verify the integrity of what they were shown, but they canât prove that nothing important was left out or that the reported value can actually be realised, which is what went wrong with Main Street, AlphaPing and now Neutrl.
You canât treat verification as binary because solvency is actually a stack of separate claims, accountable tried to packaged that entire stack into a simple âverifiedâstatus.
In Neutrlâs case, they verified that offchain records were retrieved without tampering and that Neutrlâs OTC valuation methodology was applied as claimed, but that doesnât tell you whether every asset and liability was included, whether anyone else had a claim on the assets or whether locked OTC positions could actually be turned into cash at the reported NAV.
When you market your verification as âproof of solvencyâ and say âprotocols cannot lieâ, you canât try to hide behind technical scope when your own verification implied something much broader.
But even so, itâs always on us as users to make sure we do enough due diligence, thereâs a reason DeFi popularised the saying âdonât trust verifyâ this is just the latest reminder of why thatâs so important.