2023-03-12 20:41:46
We have been closely following the recent events involving the Silicon Valley Bank and Circle's $USDC.
Here is what it all means for Cherry:
TL;DR Cherry's treasury was affected, but our exposure to these entities is limited.
- a portion of our liquid assets are held in a stablecoin portfolio weighted by market cap, in which USDC is the second largest position. We are taking action to adjust this distribution and diversify our assets into other cash equivalent products
- a smaller portion of our treasury is held in yield generating DeFi products: as USDC depegged others borrowed our assets with their USDC as collateral potentially increasing our exposure to USDC if our debtors default
- Our seed investor and technology partner Spherelink is banked with SVB. They, however, maintain sufficient working capital to continue investing and helping us build the Cherry Network
Stay tuned for more updates as the situation develops. In the meantime, our skilled team is dedicated to secure the Cherry Project's treasury and guarantee liquidity for payroll and operational expenses.
480 viewsSeraphim, edited 17:41
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