Crypto trade OKX has launched a Proof of Reserves web page that enables customers to audit its reserves to verify it’s solvent. This comes at a time when crypto exchanges are coming underneath larger scrutiny after the collapse of FTX. OKX introduced the brand new web page in a tweet, in addition to on its weblog.
Don’t belief, confirm → OKX Proof of Reserves (PoR) is LIVE.
To set a brand new customary of transparency, threat administration and consumer safety, we’re launching our first PoR.
Now you can confirm your property are backed 1:1 on #OKX ⤵️
Particulars
— OKX (@okx) November 23, 2022
The Proof of Reserves web page presents two completely different choices for customers to audit the trade’s reserves. The primary permits customers to get a short abstract of the trade’s present reserves and liabilities for its prime three cryptocurrencies: BTC, ETH, and USDT.
This abstract presently signifies that OKX has 102% of the BTC and ETH it must deal with all withdrawals in these cash, whereas it says that it has 101% of the USDT wanted to deal with all Tether withdrawals.
The second possibility is labelled “view my audit.” It permits the consumer to login and think about a snapshot of their balances held on the trade. The corporate stated that these balances must be equal to these discovered within the asset overview web page within the app’s dashboard, except the consumer has taken out margin loans.
Some customers might not belief the corporate’s net app to offer them correct data, so the corporate has additionally offered two assist file paperwork that specify the way to audit the reserves utilizing the console on a PC. These paperwork are titled “Find out how to confirm in case your property are included within the OKX Merkle tree?” and “Find out how to confirm OKX’s possession and stability of the pockets tackle.”
One of many paperwork defined the way to question the OKX app’s API to get a merkle tree of buyer balances and evaluate it to balances publicly out there on the blockchain. The opposite defined how customers can get a merkle leaf of their very own balances and confirm that this leaf is a part of the bigger tree.
Within the press launch, OKX Director of Monetary Markets, Lennix Lai, expressed the view that this Proof of Reserves web page will assist to convey larger transparency to the crypto trade market:
“Our new proof of reserves web page and self-audit function give customers the flexibility to confirm that their property are 100% backed. Third-party audits are additionally being carried out to offer extra reassurance on prime of this. We consider {that a} far larger diploma of transparency must be delivered to our business to permit us to construct again stronger after latest occasions.”
Crypto trade FTX all of a sudden skilled a liquidity crunch from November 7-11, main the corporate behind it to declare chapter. In response to this occasion, a number of executives of main crypto exchanges have declared that Proof of Reserves pages are wanted to offer transparency in order that an occasion like this by no means occurs once more.
OKX had beforehand said that it will present Proof of Reserves “asap.” Kucoin and Binance have additionally said that they plan to offer Proof of Reserves throughout the subsequent few weeks. A number of different crypto exchanges have offered Proof of Reserves pages even earlier than the FTX story broke, together with Gate.io, Bitmex, and Kraken.
