OKX releases Proof of Reserves page, along with instructions on how to self-audit its reserves

Crypto alternate 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.

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 short abstract of the alternate’s present reserves and liabilities for its high 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 person to login and examine a snapshot of their balances held on the alternate. The corporate stated that these balances needs to be equal to these discovered within the asset overview web page within the app’s dashboard, except the person has taken out margin loans.

Some customers might not belief the corporate’s internet app to provide them correct data, so the corporate has additionally offered two assist file paperwork that designate learn how to audit the reserves utilizing the console on a PC. These paperwork are titled “Learn how to confirm in case your belongings are included within the OKX Merkle tree?” and “Learn how to confirm OKX’s possession and steadiness of the pockets handle.”

One of many paperwork defined learn how to question the OKX app’s API to get a merkle tree of buyer balances and examine 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 Monetary Markets, Lennix Lai, expressed the view that this Proof of Reserves web page will assist to carry better transparency to the crypto alternate market:

“Our new proof of reserves web page and self-audit characteristic give customers the power to confirm that their belongings are 100% backed. Third-party audits are additionally being carried out to supply extra reassurance on high of this. We consider {that a} far better diploma of transparency must be dropped at our business to permit us to construct again stronger after current occasions.”

Crypto alternate FTX suddenly experienced 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 previously stated that it will present Proof of Reserves “asap.” Kucoin and Binance have also stated 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.