Proof of Reserve

Introduction

In the realm of Real-World Assets (RWA), Proof of Reserve is a critical technology that ensures a tokenized on-chain asset is genuinely backed by sufficient off-chain physical assets. It provides a verifiable method to prove that the number of issued tokens corresponds to a matching quantity of backing assets, such as US dollars in a bank account, real estate deeds, or other physical holdings.

The core principle of Proof of Reserve is transparency and trustworthiness.Traditionally, audit reports are periodic and suffer from information lag. In contrast, Proof of Reserve leverages cryptographic techniques and on-chain data to provide a near-real-time, verifiable snapshot of the backing assets, accessible to anyone.

Risk Management and Asset Delegation

To effectively manage risk, we establish a robust security framework using reserves and locked assets. These assets are delegated to a specialized team with expertise in risk assessment and pricing.

This strategy ensures that risk exposure is meticulously monitored and quantified. Concurrently, a professional pricing mechanism optimizes asset utilization efficiency. This approach not only enhances the system's resilience but also provides a higher level of security for all participants.