In the blockchain world, there's a famous saying: "Code is law." It sounds very free, but here’s the problem—when asset management strategies managed by smart contracts become more complex, especially involving dynamic asset management, relying solely on code can't truly verify whether rules are being followed. At this point, auditing is needed. But once auditing is handed over to centralized institutions, it seems to deviate from the original intention of blockchain.

Is there a third way? Yes, there is. By implementing a decentralized oracle network to achieve "trustless auditing"—eliminating the need to trust a single auditor, and instead establishing a mathematically verifiable accountability mechanism.

How does this mechanism work? It’s essentially a 24/7, fully automated auditing protocol. The process is straightforward:

First, the protocol writes risk control rules into verifiable code—such as "single asset holdings cannot exceed 20%" or "maximum drawdown limited to 5%." Then, network nodes continuously monitor real-time on-chain data, including holdings and transaction records. The system automatically performs calculations and validations. If it detects data deviating from the rules (for example, holdings exceeding 20%), it immediately generates a timestamped violation proof and notifies the governance community and users. Importantly, all validation results are permanently recorded on the blockchain, tamper-proof, forming a solid audit trail.

This way, the entire process no longer relies on subjective judgment from individuals or institutions but depends on cryptography and distributed consensus to ensure fairness.