Is this a trustworthy "verification badge"? 👀 Challenge: As the exchange collapse demonstrates, assets alone are not enough. Understating or omitting liabilities exposes risks. Key Definitions 🎆 - Solvency is the balance sheet condition where assets ≥ liabilities. - The "Proof Framework" makes this verifiable, not just an assumption. Differences in Proof Types 👀 - Proof of Reserves = Asset Verification - Proof of Solvency = Asset + Liability Verification (more comprehensive) What an Audit Actually Verifies - Officially verified asset and liability figures at a specific point in time and scope - Independence (based on on-chain and custodian data) is key to verification quality - In-house dashboards are unreliable without external verification channels How to Read the Report (Key Items) - Total Assets: Verifiable holdings within the scope - Total Liabilities: Liabilities within the scope (e.g., issued and circulating supply) - Collateralization Ratio (Assets ÷ Liabilities): Over 100% indicates overcollateralization (not complete assurance) - Delta-Neutral Notation: Whether hedged against market fluctuations - Numbers are current as of the reporting date and subject to change Solstice Example ‼️ - AccountableData (an independent third-party) provides proof of solvency for the USX - Real-time Interface: Link - Public Elements: Custodian Balance, On-chain Holdings, uPNL, USX Circulating Supply, Overcollateralization Ratio, etc. - Purpose: Provide visibility with auditable data instead of assertions. ✅ Learn more: Twitter Link