Dear Finbloxers,
We're happy to provide our 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
With interest rate expectations coalescing around expected cuts in 2024, markets for both risk equities and crypto have rebounded strongly with Bitcoin traversing $41k.
Morgan Stanley declares Crypto Winter could be over.
KyberSwap was hacked for $47mm. That has caused waves not due to the method or amount stolen, but the hacker’s demands. The hacker has demanded full control of the KyberSwap corporate operations in return for the stolen funds..Finblox has no exposure to KyberSwap.
ETF approval rumors have been driving the BTC price (and others that may also get an ETF, such as ETH and SOL) due to the resulting expectation for spot demand from the new funds.
XRP temporarily flips BNB to become 4th largest crypto in early November. XRP continues to vie for that fourth spot and closely trails BNB.
Monthly spot trading volumes reversed a multi-month slide to increase 57% in Oct, nearly to June 2023 volumes, the highest percentage jump since Jan 2021
The Total Value Locked of Real World Assets (RWA) tokenization breached $2.5Bn, a very small piece of RWA tokenization potential but the growth is promising for this long touted blockchain opportunity.
NFT sales volumes have been dropping continuously since Feb 2023 as the market demand continues to fall. We hope NFT interest picks back up again along with the recent general crypto strength.
Binance ended an investigation by several US agencies by agreeing to pay a $4.3bn fine.
HTX (Formerly Huobi), Heco Chain and Poloniex exchanges hacked for that may have been up to a combined $110m. Finblox has no exposure to either Heco Chain or Poloniex.
No Yield Changes for November
No yield changes for the previous period
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.
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 November, our allocations are as follows:
DeFi protocols: 53.57%
Centralized exchange (CEX): 0%
Self custody: 46.43%
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