Dear Finbloxers,
We're happy to provide our eighth 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
Markets
We were optimistic about near term crypto markets due to positive price action back in the end of October and were immediately slapped in the face by FTX/Alameda blowing up so it is with much caution that we note the recent rally in prices. So far it is too early to say whether this is directly related to the US Fed’s expected rate hike slowing or a broader crypto market recovery theme. The S&P 500 has recovered to levels seen about 5 months ago with Bitcoin slightly outperforming..
DeFi Allocation Increase & Risks
We’ve made no changes to our allocations between Defi and CeDefi/CEX exposure. All current customer assets remain in DeFi protocols/projects or self-custody wallets. Defi remains at risk of protocol and smart contract exploits, as well as more sinister targeted social engineering attacks.
January Yield Changes
The big news was our introduction of 100% APY APE coin staking in early January. In other good news, we’re re-introducing yield for SHIB tokens at 10% in the next few days. We’ve decreased a few tokens yield but most are marginal downward changes to reflect market rates. We continue to look for opportunities for BTC, DOGE and XRP which are currently all under self-custody.
Target Allocations
We did not make any significant changes to our allocations in January. Once again, our self-custody percentage went down as we deployed some more assets to Defi.
Our target allocations for customer assets that were initially set in July and updated in November 2022 have not changed:
DeFi protocols: 40-90%
Centralized exchange (CEX): 0-5% (used for temporary asset bridging between networks, i.e. USDC_ETH → USDC_POLY)
Self custody: 5-15%
CeFi platforms: 0%
As of the end of January, our allocations are as follows:
DeFi protocols: 60.2%
Centralized exchange (CEX): 0%
Self custody: 39.8%
CeFi platforms: 0%
We believe in providing transparency to our users on the company's activities and aim to increase our users’ view of 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