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Proof of Reserves Verifier

Automated on-chain reserve verification using Chainlink CRE to prevent exchange insolvency fraud.

DeFi & Tokenization Risk & Compliance

What it is

What is it?
Proof of Reserves Verifier is a real-time, automated system that verifies cryptocurrency exchange reserves by comparing claimed assets against actual on-chain balances. It brings transparency to centralized exchanges and prevents FTX-style insolvency fraud.
How it works?

  1. Chainlink CRE triggers automated checks every 30 seconds via cron workflow
  2. Backend API fetches real on-chain balances from Ethereum Sepolia
  3. Discrepancy Verifier calculates difference between claimed vs actual reserves
  4. ReserveOracle smart contract stores verification results on-chain permanently
  5. AlertContract fires on-chain alerts when mismatches exceed 5% threshold
  6. Frontend Dashboard displays real-time status with MetaMask integration
    Problem it solves?
    After FTX collapsed, exchanges publish fake reserve numbers with no consequences. Current solutions use occasional snapshots, third-party auditors with zero transparency, and no real-time user verification. Our solution provides continuous, trustless, on-chain verification that anyone can audit.

How it Works

Smart Contracts - Solidity 0.8.20, Hardhat, Sepolia Testnet
Automation - Chainlink CRE (TypeScript workflows)
Backend - Node.js, Express, TypeScript, ethers.js v6
Frontend - Next.js 16, TypeScript, TailwindCSS
Deployment - Render (Web Services)

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Created by

  • Jevin Jojo