DeFi market structure, onchain credit and where finance is going | success @avon_xyz | underwater @10b57e6da0 š¦ full time observer of market delusion.
Accountable marketed itself into these controversies because they collapsed two completely different things into one, theyāve blurred the lines between āthis data is authenticā and āthis protocol is solventā, so Iām not surprised theyāre being blamed for a lot of this.
They can verify the integrity of what they were shown, but they canāt 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 canāt treat verification as binary because solvency is actually a stack of separate claims, accountable tried to packaged that entire stack into a simple āverifiedāstatus.
In Neutrlās case, they verified that offchain records were retrieved without tampering and that Neutrlās OTC valuation methodology was applied as claimed, but that doesnāt 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 āproof of solvencyā and say āprotocols cannot lieā, you canāt try to hide behind technical scope when your own verification implied something much broader.
But even so, itās always on us as users to make sure we do enough due diligence, thereās a reason DeFi popularised the saying ādonāt trust verifyā this is just the latest reminder of why thatās so important.