Cake DeFi unveils proof of reserves based on Merkle tree method
Singapore-oriented decentralised finance (DeFi) services firm Cake DeFi has revealed its proof of reserves utilising cryptographically-backed Merkle tree method, as reported by Cointelegraph.
According to Cointelegraph, users will be able to ensure verification of their assets along with the company’s liabilities. It is believed that the recently unveiled feature, which gives public access to its Merkle tree proof of reserves, is available on its website. Reportedly, the tool intends to allow users to perform a self-audit of their own funds under the Merkle tree data structure.
On the basis of information by Cointelegraph, Cake DeFi stated that it’ll permit users to supervise the process of yield generation, using real-time on-chain data around customer funds. In spite of exchanges such as Binance, Crypto.com, Bybit, OKX, among others, have unveiled Merkle tree-backed proof of reserves to ensure transparency post FTX’s collapse, certain officials reportedly stay sceptical about their efficacy factor.
Moreover, Cointelegraph noted that in a December 22, 2022, interview, Paul Munter, acting chief accountant, Securities and Exchange Commission, stated that the audit-based results can’t act as an indication of the company being financially stable. Munter also highlighted that proof-of-reserves reports by exchanges are devoid of enough information for stakeholders to decide whether the company has enough assets to pay off liabilities.
(With insights from Cointelegraph)
