Quality in DeFi is perennially “Somebody Else’s Problem”
Venture Capital are generally in favor of quality organizations. They improve the overall quality and bring money into the space, making their investments more valuable. However, their investors require significant growth projections before any investments. Quality organizations don’t make money fast enough for VC’s.
Protocols are against any cost that does not bring value to them quickly. As I’ve been told many times, the ROI is not there. While they understand the value of a good quality organization, that value will take time to be realized and they have to look near-term.
Users also want to interface with quality products. They want a simple, understandable and trustable method to determine which protocols to use+. They want a separate trustworthy organization to do the research for them. They do not want to look at the list of audit reports. But, users expect quality to be free. It is in every other industry, why should DeFi be any different?
This must improve. A valid quality system that everyone accepts is one vital leg of a thriving DeFi space. ISO will not do the job. They are very far behind. Here decentralization hurts our industry as we don’t have industry groups or government support that help new industries develop standards. We have to do it ourselves. Quality systems are boring. But they are still necessary.
Over the past 2+ years, DeFiSafety has developed and improved a public rating system and quality system that most DeFi protocols approve of and get good scores with. It is the best system DeFi has. It can get better with more active assistance from protocols.
DeFiSafety will start issuing quality certificates with the goal of becoming the quality standard for DeFi. We are going to ask the protocols to purchase these certificates (making quality the protocol’s problem). When regulators begin dictating quality standards on DeFi investors we want the DeFi industry to have an existing quality standard they can point to for inclusion in regulation.
We need DeFi’s support on this. If you are a protocol, buy the certificates. It feeds the small team of DeFiSafety. If you are a DeFi user or fund. Demand certification before you invest. Subscribe to our data. If you are a VC, insist on certification for the protocols you invest in.
