Andrei Grachev, co-founder of DWF Labs and Falcon Finance, said the team chose to withdraw all Falcon funds from centralized exchange as part of its risk management strategy.
In a recent post, Grachev provided an update on the crypto space that, for security reasons, the team has moved all crypto funds away from centralized exchange. He claimed they had an independent auditor who signed the certificate to prove that the funds had been removed from CEXS.
“We've taken all the funds away from Cexes and received certificates from the auditors who confirmed it,” Grachev said.
Additionally, the project is set to launch a new transparency page that will be released someday this week. The team is currently working on the structure of the page, which could potentially show movements in project funds, crypto holdings and other transparency metrics.
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Why is Falcon Finance leaving CEXS?
Falcon Finance's decision to keep all funds away from centralized exchanges shows a clear desire from CEXS to enhance risk management strategies, transparency and independence.
Co-founder Andrei Grachev highlighted this shift in addition to future efforts to improve on-chain visibility through a dedicated transparency page. By removing assets from CEXS, Falcon reduces management risks such as account freezes, hacking, or mismanagement that have plagued central exchanges in the past.
This is consistent with the protocol's commitment to using only market neutral strategies, avoiding directional trading completely, and maintaining strict reserve backing for all USDFs created.
According to published briefs, Falcon's reserves are overfitted at a 116% ratio, with 89% being held in Stablecoins and Bitcoins (BTC). These reserves have also been audited, further highlighting their commitment to transparency and sustainable growth.
Loading the funds for centralized exchanges allows these reserves to be held on-chain, publicly demonstrating proof of reserves, enabling more efficient and transparent financial operations.
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