Proof of Reserves (PoR) Verification System Update: Addition of Asset Collateral Information

08-10-2024 04:00

Fellow Binanceians,

As part of Binance's ongoing commitment to user fund transparency, we are pleased to announce the addition of asset collateral information to our Proof of Reserves (PoR) system.

Displaying asset collateral information demonstrates that the assets users hold on Binance as collateral for loans will always exceed their liabilities. It also takes into account the variable liquidity of assets and further illustrates that users' assets on Binance are always backed at least 1:1.

Highlights of Binance's PoR System:

Binance's PoR methodology is unique in transparently capturing debt liabilities and allows users to have greater visibility into their debt-to-collateralization ratio.

Binance recognizes the reality that the value obtained by liquidating large amounts or low market cap assets would not be equivalent to their face value. By identifying users' collateralized assets and implementing a haircut to their face value, Binance can further demonstrate that users' assets are always fully backed.

Users can visit our Proof of Reserves page to review the latest version and verify that their funds are safe with Binance.

Our PoR code remains open source to foster greater transparency within the community and facilitate smooth adoption of the technology by other industry players.

Note: There may be discrepancies between this original English article and the translated versions.

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