DWF Labs and Falcon Finance co-founder Andrei Grachev stated that the crew has chosen to withdraw all Falcon funds from centralized exchanges as part of its danger administration technique.
In a latest submit, Grachev delivered an replace to the crypto area that the crew has moved all their crypto funds away from centralized exchanges for safety causes. He claimed that they’ve an unbiased auditor who has signed an attestation letter to show that the funds have been faraway from CEXs.
“We moved all funds away from CEXes, acquired attestation letter from the auditors that confirmed that,” stated Grachev.
As well as, the challenge plans to launch a brand new transparency web page that may go dwell a while inside this week. The crew is at present engaged on the construction for the web page, nevertheless it’s possible that the web page will present actions of the challenge’s funds, crypto holdings and different transparency metrics.
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Why is Falcon Finance departing from CEXs?
Falcon Finance’s resolution to maneuver all its funds away from centralized exchanges signifies a transparent need to strengthen its danger administration methods, transparency, and independence from CEXs.
Co-founder Andrei Grachev emphasised this shift alongside upcoming efforts to enhance on-chain visibility by way of a devoted transparency web page. By eradicating property from CEXs, Falcon mitigates custodial dangers resembling account freezes, hacks, or mismanagement which have plagued centralized exchanges up to now.
This aligns with the protocol’s dedication to solely utilizing market-neutral methods, avoiding directional trades fully, and sustaining strict reserve backing for each minted USDf.
In line with the revealed transient, Falcon’s reserves are overcollateralized at a ratio of 116%, with 89% held in stablecoins and Bitcoin (BTC). These reserves are additionally audited, which additional underscores their dedication to transparency and sustainable progress.
Offloading funds from centralized exchanges permits them to carry these reserves on-chain, making it simpler to publicly reveal proof of reserves and allow extra environment friendly, clear monetary operations.
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