Cake DeFi publishes Merkle tree-based Proof of Reserves
Singapore-based decentralized finance (DeFi) services firm, Cake DeFi, has announced the release of its Proof of Reserves using the cryptographically-audited Merkle tree method.
Developed by Ralph Merkle in 1979, the Merkle tree method is a way of proving that a certain piece of data is included in a set of data, without revealing the entire set of data. Under the proof of reserves method, a Merkle tree is used to prove that a cryptocurrency exchange has the reserves it claims to have, without revealing the exact amounts of each cryptocurrency that it holds, in order to protect the privacy of the platform and its users.
Security and transparency aren't just duties, they're a necessity, and we live them every day. As part of our ongoing effort to build the most trusted and transparent one-stop #DeFi and Web3 platform, we are publishing our #ProofofReserves https://t.co/btWi3bbqxJ
According to the DeFi services firm, users can now verify their assets, as well as the company's liabilities, in a newly rolled-out feature that grants public access to its Merkle tree Proof of Reserves, available on its website. The tool intends to enable users to perform a self-audit of their own funds under the Merkle tree data structure.
In the spirit of transparency, Cake DeFi said it will also enable users to see how yields are generated, with real-time on-chain data about customer funds.
Related: Cake DeFi launches $100M venture arm for Web3, gaming, and fintech initiatives
Although many exchanges such as Binance, Crypto.com, Bybit, and OKX, have all rolled out Merkle Tree-based proof of reserves to promote transparency following the collapse of FTX, some officials remain skeptical about the efficacy of the Merkle tree-based proof of
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