OKX releases Proof of Reserves page, along with instructions on how to self-audit its reserves
Crypto change OKX has launched a proof-of-reserves web page that permits customers to audit its reserves to verify it’s solvent. This comes at a time when crypto exchanges are coming below better 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, danger administration and consumer safety, we’re launching our first PoR.
Now you can confirm your belongings are backed 1:1 on #OKX ⤵️
Particulars
— OKX (@okx) November 23, 2022
The proof-of-reserves web page gives two completely different choices for customers to audit the change’s reserves. The primary permits customers to get a short abstract of the change’s present reserves and liabilities for its high three cryptocurrencies: Bitcoin (BTC), Ether (ETH) and Tether (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 choice is labeled “view my audit.” It permits the consumer to log in and examine a snapshot of their balances held on the change. The corporate stated that these balances needs to be equal to these discovered on the asset overview web page within the app’s dashboard except the consumer has taken out margin loans.
Some customers could not belief the corporate’s net app to provide them correct data, so the corporate has additionally offered two assist file paperwork that designate how you can audit the reserves utilizing the console on a PC. These paperwork are titled, “Find out how to confirm in case your belongings 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 how you can question the OKX app’s API to get a Merkle tree of buyer balances and examine 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 better transparency to the crypto change market:
“Our new proof of reserves web page and self-audit function give customers the flexibility to confirm that their belongings are 100% backed. Third-party audits are additionally being performed to supply extra reassurance on high of this. We consider {that a} far better diploma of transparency must be delivered to our trade to permit us to construct again stronger after current occasions.”
Crypto change 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 supply transparency in order that an occasion like this by no means occurs once more.
OKX had beforehand acknowledged that it could present proof of reserves “asap.” KuCoin and Binance have additionally acknowledged that they plan to supply proof of reserves inside 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.
