Transparency and accountability are two crucial aspects of the world of decentralized finance. Projects can acquire those traits through a variety of methods.
Accountability Is A Must In DeFi
The cryptocurrency and blockchain industry allows for unprecedented transparency by default. However, there is always room for further improvements.
Particularly in DeFi projects, there is often a concern regarding how many assets a company holds compared to customer liabilities. Figuring out such details is possible, although it requires the service provider to share the necessary information.
Unfortunately, that is not always the case, creating a sense of distrust.
One of the industry’s leading lending and borrowing service providers, Nexo, has opted for a different route. The company wants to enhance its transparency and accountability.
With the help of US-based accounting firm Armanino, that has now become possible. More specifically, Nexo has undergone a successful audit and ensures its assets-liabilities ratio is publicly visible for everyone.
Armanino’s audit puts a stamp of approval on the crypto-oriented lending and borrowing solution Nexo provides. Moreover, it confirms Nexo’s customer liabilities are healthy when compared to the assets under management.
A real-time overview of this crucial information offers an unprecedented layer of accountability the DeFi industry has not seen so far.
It is not the first time Armanino reviewed and audited a high-ranking service provider in the cryptocurrency space. The firm has performed similar audits for Kraken – one of the top crypto exchanges globally – and Uber.
Their services are renowned and respected in the US and beyond. Additionally, such an audit brings more legitimacy to the broader industry.
An Important Milestone For Nexo
As one of the leading crypto lending and borrowing providers on the market today, Nexo plays a crucial role in the DeFi industry. Moreover, the company manages nearly $10 billion in customer liabilities, confirming the demand for alternative solutions like these.
As a service provider, the company needs to ensure the collateral ratio remains at 100% or above like it is currently.
With over 2 million users and support for several dozen fiat currencies, Nexo has built up a strong reputation over the years. Moreover, the company is insured for up to $375 million by BitGo and Ledger, putting customer funds at ease.