Accountable, a Zk-driven online credit analysis startup, has raised $2.3 million in seed funding.

According to CoinDesk's report, the encryption data startup company Accountable has raised $2.3 million in seed funding to transform the under-collateralized encryption credit field. MitonC and Zee Prime Capital led the financing, with angel investors Darius Rugys (from Maven 11) and DCBuilder (from Worldcoin Foundation) also participating.

The team is building a privacy-focused data platform that provides real-time verification of borrowers' assets, liabilities, and transaction risks. Users can connect their custodial accounts, exchanges, and other relevant accounts to a dashboard to generate credit risk reports that can be shared with lenders.

Borrowers can control which data is shared and to whom it is sent.

Accountable was founded in 2022, just as the centralized encryption credit market was collapsing, with multiple lending companies (such as BlockFi, Celsius, and Genesis) declaring bankruptcy. These companies had over-expanded, operating on flawed notions of trust.

Despite the contagion event from the failed algorithmic stablecoin TerraUSD to the renowned hedge fund Three Arrows Capital ultimately leading to the crash of the encryption exchange FTX, many applications built using encryption-native tools are still able to maintain solvency.

Accountable also hopes to use encryption technology to enable borrowers and lenders to continue interacting without trust. But unlike over-collateralized on-chain platforms like MakerDAO that have successfully weathered market downturns, Accountable aims to help rebuild the under-collateralized lending ecosystem.

In terms of encryption credit, price fluctuations have a significant impact, and agreements may require borrowers to provide capital higher than the loan value, which will be automatically liquidated in a market downturn to ensure a certain level of safety. Although undercollateralized loans are possible, a more comprehensive understanding of the borrower's repayment ability is required.

Accountable's Chief Technology Officer Ioan Moldovan stated, "We believe that the new encryption technology advancements have the potential to revolutionize information exchange, and all valuable data will soon be accompanied by verifiability levels and encryption proof."

Accountable's business model focuses on encryption technology advanced enough to fairly assess the creditworthiness of users using on-chain data. However, unlike existing on-chain credit rating agencies like Credora, Accountable users do not need to share their API keys or wallet addresses, which would generate 'static' measurements, said Wojtek Pawlowski, CEO of Accountable.

Pawlowski added that Accountable is reaching a data provider agreement with Credora, which is software as a service-centric.

Although there is a 'huge retail demand' for profits based on encryption in the market, after the bear market, surviving lenders have implemented strict collateral requirements and higher interest rates, limiting the market.

The platform uses 'zero-knowledge transport layer security' - a protocol that combines zero-knowledge proof with network-native transport layer security to securely transfer data between blockchain and Web2, as well as fully homomorphic encryption and other encryption technologies to help portray users' creditworthiness.

Users will be able to create a 'comprehensive financial condition chart' on the Accountable platform. This allows them to share confidential financial information with counterparties. Pawlowski pointed out that financial institutions in particular are unlikely to be willing to disclose (or 'open source') their entire business model to enter the encryption market.

Accountable technology can be used in "any situation that requires data verification". For example, exchanges or stablecoin issuers can theoretically prove their assets and liabilities in real time without disclosing their actual holdings, to demonstrate their solvency in a "reserve proof" report.

CyantArb Group stated in a statement: "As a team focused on high-frequency trading, it is crucial to obtain debt without compromising proprietary data to maintain our competitive advantage." The company stated that it is using the platform to protect its proprietary trading strategies while maintaining confidentiality with its lenders.

The current version of the company has been developed for 16 months, initiated by Maven11, as they were liquidated after the collapse of their lending pool with Orthogonal Trading on FTX. Accountable currently has eight employees and plans to use this fund to pay salaries. The company plans to conduct another round of financing in the second quarter of 2025.