DeFi Transparency Is Not Explanation: State, Provenance, and Evidence-Classed Confidence in Aave V3

This public research note presents selected findings from Flow Extraction Theory (FET), an independent research program studying evidence-classed representation of economic state in DeFi lending markets. The note argues that DeFi transparency is not equivalent to explanation. In a fixed-block Aave V3 study, FET separates visible data, exact state observation, token/reserve cross-checks, bounded explanation, oracle/source provenance, current reserve configuration, historical configuration action, governance authorization, and Unknown evidence boundaries. The central finding is that exact DeFi lending state and many historical configuration actions can be recovered, but explanation confidence and authorization provenance mature unevenly. Current configuration is not historical action; historical action is not governance authorization. This note is not a trading signal, liquidation system, parameter recommendation, investment recommendation, or execution guide. It is a public research note on evidence-layer classification, state representation, provenance, and explanation confidence.