Dear Finbloxers,
We're happy to provide our fourteenth 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
The crypto market in July 2023 was relatively flat, with Bitcoin and Ethereum both trading within a narrow range. In short, the crypto market in July 2023 was a mixed bag, with some positive developments but also some concerns about the security of DeFi protocols.
Bitcoin briefly reached a new 52-week high of over $31,000, but then pulled back and ended the month below $29,300 while Solana was the best July performer with a 56% gain.
Curve exploit: In early August, an unknown hacker exploited a coding bug in and old version of the Vyper programming language to steal over $73 million worth of tokens from Curve Finance, Metronome, and Alchemix. The hacker was able to drain the funds from multiple trading pools by exploiting a vulnerability that allowed them to mint new tokens without providing any collateral. Curve Finance offered a 10% bounty for the return of the funds, and over 73% of the stolen assets have been returned so far. The hack has raised concerns about the security of DeFi protocols, and it is likely that more hacks will occur in the future. DeFi TVLs dropped drastically after the news. Finblox has exposure to Curve pools but was unaffected by this exploit.
BALD rug pull: The BALD rug pull was a scam that occurred on the developer-only Base chain in July 2023. The BALD token was created as a meme coin. The developer of the token had 49% of the total supply, and they were able to withdraw all of the liquidity from the token's trading pool. The price of BALD plummeted, and investors lost millions of dollars. The BALD rug pull is a reminder that users should be very careful when purchasing in new tokens, especially meme coins.
Ripple and XRP benefitted from a court decision that said the sale of XRP to the general public was not an unregistered sale of securities. Conversely, the sale to institutional investors was an unregulated securities offering.
Yield Changes
We’ve made the following recent changes to the yield for three tokens in our Earn program.
DOT 0%
LADYS 4%
PEPE 22%
The FB Earn program will undergo changes in the coming month in order to align our resources with the market and optimize our platform. Stay tuned for upcoming announcements
DeFi Allocation Increase & Risks
We’ve made no material 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.
Target Allocations
We did not make any significant changes to our allocations.
Our target allocations for customer assets that were initially set in July 2022 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 and vice versa)
Self custody: 5-15%
CeFi platforms: 0%
As of the end of July, our allocations are as follows:
DeFi protocols: 49.2%
Centralized exchange (CEX): 0%
Self custody: 50.8%
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