We're happy to provide our 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 have been range bound for crypto asset prices but given the events of the past year, Bitcoin is still showing resilience.
Grayscale wins appeal against SEC over blocking its conversion into a spot Bitcoin ETF. Relatedly, the SEC’s multiple BTC ETF application decision has been delayed.
Paypal allows deposits/with directly to wallets and released their own stablecoin.
Crypto spot market activity in August was the lowest in 4 years.
Base has proven popular and is the best performing L2 blockchains in August
Crypto fundraising down from $2.41bn a year go to 349mm in Aug, led by Bitgo with $100mm raise
Falling inflation bodes well for risk assets but Fed tightening may not be over and USD inflation is still above 2% target
Talking around the BTC Halving (estimated at Apr 17, 2024) already starting to pick up pace for macro price predictions
BTC correlations with RWA in September mostly negative breaking the high correlation of these assets over the past year.
Yield Changes for September
We’ve made the following recent changes to the yield for three tokens in our Earn program.
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.
Due to the reduction in rates for several assets, those have been moved from Defi strategies and into custody wallets. This has resulted in an overall decline in Defi exposure for the asset portfolio strategies.Assets in custody are no longer exposed to Defi risks.
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 September, our allocations are as follows:
DeFi protocols: 42.92%
Centralized exchange (CEX): 0%
Self custody: 57.08%
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