Binance, the world’s largest cryptocurrency exchange, updated its proof-of-reserves system on Mar 7 in response to the importance of transparency and security by investors and traders in the digital currency realm. They have added 11 new tokens, which has resulted in the PoR system now including 24 tickets.
According to Binance’s blog post, the PoR mechanism adds up on-chain data using Merkle trees, enabling users to confirm that their assets are kept 1:1 in Binance’s custody. Binance now has over $63 billion in reserves, a massive rise from when the system was established in late 2022. This is due to the inclusion of 11 new tokens in the system.
Adopting zk-SNARKs, a zero-knowledge protocol that improves the privacy and security of user data during the verification process is one of the upgrade’s most notable features. With its PoR method, Binance is the first centrally-controlled cryptocurrency exchange (CEX) to use this technology.
However, the exchange has published its open-source PoR system code, showing Binance’s dedication to openness and the greater crypto community. This suggests that other sector participants may profit from this innovative application, and the community may support the system’s improvement.
Introducing Binance Earn’s “Range-Bound” Feature
Binance’s Earn launched a new product called Range Bound for users to earn higher rewards during low market volatility. This is a recent development in Binance’s offerings.
Range Bound allows users to earn rewards by selecting a Price Range for their preferred digital asset and if the Reference Price of that asset remains within the chosen range throughout the Subscription Period.
Moreover, users can customize the Price Range and Settlement Date based on their requirements and preferences. This provides users with flexibility and control over their investment strategy.
Users can select how much of their Subscription Amount to relinquish if the Reference Price hits the Upper/Lower Range. This may result in higher APR rewards in tokens. Users have the option to decide whether or not to do this.
Additionally, the potential APR increases with the amount of the subscription at risk. Users keep their Subscription Amount at Risk with the applicable APR if the Reference Price remains within the Pricing Range.
Related Reading | Ethereum Founder Vitalik Buterin’s Token Sale: A Strategic Financial Move?
If the Reference Price exceeds the Upper/Lower Range of the chosen Price Range, users will lose their Subscription Amount at Risk and receive no APR.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing