The Safe CEX Club is a club for Centralised Exchanges (CEXes) that are committed to transparency and solvency.
- Announced on: 5-12-2022
- After the crash of FTX in 11-2022, multiple CEXs rushed to publicly announce their wallet addresses and PoRs in order to keep the confidence of their users. CZ announced he would work on Proof of Solvency, Vitalik wrote a blog about a Safe CEX. Soon after SafeCEX.club got released.
CEX Solvency Score
- From their announcement (5-12-2022):
"We take a POR statement and then score it according to a set of true/false statements each with different weights depending on their significance
✅ The Merkle tree proof is available and verifiable online for all CEX users (10 pts)
✅ The Merkle tree proof is open source and can be verified locally (40 pts)
✅ The CEX's on-chain wallet addresses have been made public (30 pts)
✅ The CEX's on-chain wallet addresses' ownership has been confirmed by a third-party auditor (10 pts)
✅ The CEX's on-chain wallet addresses' ownership has been proven publicly by signing a custom message on-chain (10 pts)
To account for days passed since POR we then add a time coefficient to make sure that exchanges don't get too comfy after they have nailed their first POR: Solvency Score = points*0.998^days
According to their Solvency Score exchanges are then admitted to the club and a tier: 85+ Diamond Tier 70+ Gold Tier 50+ Silver Tier <50 no membership"