We're happy to provide our second monthly Transparency Report, which is designed to bring some peace of mind to our users so that they know where their funds are being deployed. The allocations presented below are subject to change depending on strategy performance, future yield projections, and the evolution of the customer deposit mix.
*The report is subject to market changes and numbers shown are a rough estimation
**Target asset allocation is for reference only and subject to change per market conditions and business strategies
Peak summer is here, and we’re glad to report that we’ve made substantial progress in deployment of assets towards our original targets. You can view them in our first July transparency report here.
Our target allocations from July remain unchanged and are as follows:
DeFi protocols: 40-65%
Centralized exchange (CEX): 25-50%
Self custody: 5-15%
CeFi platforms: 0%
As of the beginning of August, our actual allocations are as follows:
DeFi protocols: 33.95%
Centralized exchange (CEX): 47.71%
Self custody: 18.34%
CeFi platforms: 0%
DeFi: The main culprit for lower allocations into Defi are staking and unbonding time locks. To ensure liquidity for our customers, we need to make sure that we have un-staked assets up to 9 days before we expect a need for that liquidity. For the near term, our approach is to ensure excess liquidity despite the impact on yield.
CEX: We’re sitting within target for our exposure to CEX counterparties, and we’d like to continue reducing this % over the long term. As yields in DeFi remain depressed, this will likely take some time. The exchanges we use are market leaders but we will continue to explore ways to generate sustainable yield across more DeFi platforms.
Self-Custody: This category represents all of the tokens that are in our operational wallets that provide liquidity to our customers. As time goes on, and we get more data on further liquidity needs - we’ll be able to manage this more tightly.
We believe in providing transparency to our users on the company's activities and aim to increase our users’ view into where their coins and tokens are and how they are performing. As always, we'd love to hear more feedback about the types of info you want.
All the best,
The Finblox Team