Crypto alternate 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 beneath higher 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 commonplace of transparency, danger 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 affords two completely different choices for customers to audit the alternate’s reserves. The primary permits customers to get a quick abstract of the alternate’s present reserves and liabilities for its prime three cryptocurrencies: Bitcoin (BTC), Ether (ETH) and Tether (USDT).
This abstract at the moment 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 labeled “view my audit.” It permits the consumer to log in and think about a snapshot of their balances held on the alternate. The corporate stated that these balances must be equal to these discovered on the asset overview web page within the app’s dashboard until the consumer has taken out margin loans.
Some customers could not belief the corporate’s net app to provide them correct info, so the corporate has additionally supplied two assist file paperwork that specify the right way to audit the reserves utilizing the console on a PC. These paperwork are titled, “How one can confirm in case your property are included within the OKX Merkle tree?” and “How one can confirm OKX’s possession and steadiness of the pockets tackle.”
One of many paperwork defined the right way to question the OKX app’s API to get a Merkle tree of buyer balances and evaluate it to balances publicly accessible 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 economic markets, Lennix Lai, expressed the view that this proof-of-reserves web page will assist to convey higher transparency to the crypto alternate market:
“Our new proof of reserves web page and self-audit function give customers the power to confirm that their property are 100% backed. Third-party audits are additionally being performed to supply further reassurance on prime of this. We imagine {that a} far higher diploma of transparency must be dropped at our trade to permit us to construct again stronger after current occasions.”
Crypto alternate 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 might 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 supplied proof-of-reserves pages even earlier than the FTX story broke, together with Gate.io, Bitmex and Kraken.
