If Euler steps in to compensate, itâs not hard to see what impact that would have on the curator landscape: curators and unworthy borrowers capture the upside, while downside risks are outsourced to Euler. As a result, you create an unhealthy competition to take more and more bad risks, which ultimately only hurts depositors and Euler itself.
Rather, Euler should focus on steps that align depositors with curators more, for example by creating the tools to do risk-tranching and creating healthy precedents around curators taking economic (and not just reputational) risk.
As a user who lost funds in one of these vaults, I agree that Eulerâs treasury isnât responsible for compensating me for curator failures. But there is significant room for improvement on Euler Financeâs partâspecifically in holding curators more accountable and providing better transparency and communication to users like me at every stage.
As someone who has worked extensively in both Web2 and Web3, it pains and surprises me to see the constant lack of professionalism, attention to detail, execution excellence, and accountability in Web3. When youâre managing and holding billions in assets, the quality and timeliness of communication matters. I was disappointed.
Even as someone who has lived Web3 for three years, I had to stumble my way through figuring out what had happened and what my next course of action should be. Again, Euler doesnât owe me anything in terms of making me wholeâbut hosting and running a platform of this scale comes with responsibility toward your users. Instead, it felt like the Wild West.
Euler needs to hold both itself and its curators more accountableâat a minimum when it comes to communication and transparency. Yes, parts of this ecosystem are a casino, but letâs at least keep the lights on and call it as we see it. These are early days in DeFi - provide users like me who are willing and keen to learn more from our mistakes the means to learn from our mistakes. It shouldnât be this hard for us. By Euler informing its users better - will only help improve Euler - as users will demand more from it and its curators.