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Following the fall of FTX, the broader crypto market witnessed a ripple effect. The already struggling market took another hit in the wake of once a leading crypto exchange filing for bankruptcy. Taking lessons from the instance and in efforts to win back the users’ trust, many crypto exchanges opted to go for Proof of Reserves (PoR). OKX being one such leading exchange followed the same but now it’s reported to get one step further.
The second largest crypto exchange in terms of trading volume, OKX published its Proof of Reserves on 23rd December 2022. This PoR report was distinct regarding that it was the second time for the exchange to do so.
While obligating its commitment to transparency, OKX said to publish its PoR every month on 22nd. The report will be available on the website and available for users to view and verify the results showcased in both the PoRs through open source tools.
New features of PoR of OKX will enable users to have a glance over the reserve ratio of exchange seeking new and historical data. In addition to self-verifying the assets available on-chain, users can also download the new and historical data file.
The crypto exchange claims to maintain a one to one ratio for its crypto reserves. The recent report showcases that currently OKX holds 101% reserve against Bitcoin (BTC) and Tether (USDT) and 103% against Ethereum (ETH). All the three aforementioned crypto assets are part of its Merkle tree PoR program.
The custodian must hold the crypto assets it says it is holding on behalf of its users, therefore Proof of Reserves is an audit of crypto assets that verifies this. This assertion is supported by OKX in two ways using the Merkle tree (hash tree). Initially, users can locate their balance in the tree and demonstrate that their assets are included in the overall OKX balance. In order to compute Proof-of Reserves, the entire OKX amount is secondly contrasted with the publicly available OKX on-chain wallet balance.
BTC, ETH, and USDT account for almost 90% of holdings, according to the OKX Nansen dashboard, which also shows other assets.
The public will continue to be able to audit asset flows thanks to the more than 23,000 addresses that OKX provided to safeguard the transparency of its PoR programme. On Github, the public can access the open-source OKX PoR protocol.
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