Cake DeFi, a Singapore-based decentralized financial (DeFi) services company, has announced the release of proof of reserves using the crypto-audited Merkle Tree method.
Developed by Ralph Merkle in 1979, the Merkle Tree method is a method of proving that a data set contains certain data without revealing the entire data set. To protect the privacy of the platform and its users, the Proof of Reserve method uses Merkle trees to allow cryptocurrency transactions without revealing the exact amount of each cryptocurrency held by the cryptocurrency exchange. Prove that the institution has the reserves it claims. .
Security and transparency are not just a mandate, they are a necessity and we live it every day.As part of our ongoing effort to build the most trusted and transparent one-stop shop #DeFi and Web3 platform. #ProofReserves https://t.co/btWi3bbqxJ
—Cake DeFi (@cakedefi) November 11, 2022
Users can now check their assets and company liabilities in a newly rolled out feature that allows public access to the Merkle Tree Proof of Reserve available on their website, according to the DeFi service company. The tool is intended to allow users to perform a self-audit of their funds under a Merkle Tree data structure.
In the spirit of transparency, Cake DeFi said it will also use real-time on-chain data on customer funds to allow users to see how yields are generated.
There are many exchanges such as binance, crypto dot com, BybitWhen OKXall rolled out Merkle-tree-based reserve proofs to promote transparency after the FTX collapse, but some officials were skeptical about the validity of Merkle-tree-based reserve proofs. target.
In an interview with The Wall Street Journal on Dec. 22, SEC deputy chief accountant Paul Munter said the results of these audits do not necessarily indicate that the company is in good financial standing. . According to him, RESERVES REPORTS BY THE EXCHANGE ARE ‘lACKED’ INSUFFICIENT INFORMATION Stakeholders determine whether the company has sufficient assets to meet its liabilities.