For a crowd that constantly parrot “DYOR”...you should really DYOR.
No stablecoin has even been audited. Zero. None.
Most perform attestations, which doesn’t even come close to an audit.
Tether does neither.
No stablecoin has even been audited. Zero. None.
Most perform attestations, which doesn’t even come close to an audit.
Tether does neither.
scroll down to the bottom. there were monthly audits dating back to sept 2018.
Read the accountant’s writing very carefully and you’ll see it means they merely examined management’s report and their assertion that at a specific time at 3:44 pm feb 26th they had the money.
https://assets.ctfassets.net/jg6lo9a2ukvr/1Qg69anSKlBi3FbFA4...
> Paxos Trust Company has engaged Withum, a nationally top-ranking auditing firm, to independently verify at specific points in time that the entire supply of Paxos Standard tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos.
> Withum performs month-end attestations of these accounts using standards established by the AICPA.
An independent third party verifies and attests to the fact reserves match supply every month. Looks fine to me.
This is the crypto world.
Are you going to explain what's wrong with the attestation?
Deltec, Tether’s bank, is owned by Tether. So it’s worthless.
But attestations tell you nothing about solvency. Let’s say I need to show $1k in my bank account. So I go to a loan shark. I can now get an attestation that I have $1k. It’s true, I do...but I also owe $1k.
Attestations are not audits.
For the Paxos attestations, Paxos merely needs the money in an account at specific points in time.
But if you take that away, the whole party stops. Exchanges can’t afford BTC sub $10k anymore. There is no hiding from Tether. They have co-opted the system.
That said, DAI is an interesting case in that it is now mostly backed by centralized assets rather than ETH.
I do not believe it is within the capacity of the average user to audit such a system. It would be simple for an average person to examine a USD account balance and say “yes the money is there”. But how can anyone figure all the possible tail events that could occur from DAI’s structure?
https://webcache.googleusercontent.com/search?q=cache:Cb0cMy...
https://medium.com/@adamscochran/3-reasons-why-dai-is-defis-...