Chinese DEX Sun Wukong reveals $64.14M in reserves

The Chinese decentralized contract exchange, Sun Wukong, has launched its proof-of-reserves page. This page contains details about the platform’s current stablecoin reserves, which amount to $64.14 million. The DEX has unveiled a 100% stablecoin reserve ratio, nearly all of which is held in USDT.

According to the platform's website, Sun Wukong maintains a 100% stablecoin reserve ratio. The proof-of-reserves page allows traders to check real-time updates about the asset reserve status. As the platform is primarily focused on trading perpetual contracts, it is expected that the reserves are held in stablecoins. Data from Nov. 11 reveals that Sun Wukong had $64.14 million in stablecoin reserves, with 99.9% of the reserves stored in USDT. Meanwhile, USDC accounts for $3,179 and USDD makes up $1,131. This structure highlights the DEX’s significant reliance on Tether’s USD-pegged stablecoin.

Sun Wukong’s proof-of-reserves indicates that the largest portion of its USDT reserves—approximately $48.9 million—is stored in a Tron vault labeled 'vault layer 3'. The rest of the reserves are spread across four other blockchains: Arbitrum (ARB), Binance Smart Chain (BNB), Ethereum (ETH), and TRON (TRX). This distribution reflects the platform’s strategic approach to stablecoin storage, with a primary focus on the TRON ecosystem for its USDT reserves.

The platform’s proof-of-reserves highlights a strong user preference for USDT. This dominance of Tether’s stablecoin in Sun Wukong’s ecosystem may have led the DEX to maintain such significant USDT reserves. The stablecoin’s reliability and widespread usage in the crypto space contribute to its standing as the preferred asset for users on Sun Wukong.

As of Nov. 12, Sun Wukong recorded a trading volume of $4.87 billion, reflecting a $1.2 billion increase within just eight days. Since its launch on Oct. 9, the DEX has experienced exponential growth, nearing an impressive milestone of $5 billion in trading volume. In the past 24 hours alone, the platform reported a trading volume rise of $221.46 million, with the number of active users increasing from 35,600 to 58,707.

Sun Wukong’s most traded asset is Bitcoin (BTC), with a 24-hour trading volume of $30.9 million. It is followed by Ethereum (ETH), with a daily volume of $25.2 million, and Solana (SOL), which recorded $7.16 million in daily trading volume. These figures highlight the platform’s support for major cryptocurrencies while showing a clear preference for BTC and ETH trading.

Sun Wukong is the first native decentralized futures exchange on the Tron ecosystem and is widely recognized as the world’s first Chinese decentralized contract exchange. The platform mainly targets Chinese-speaking traders, and its launch in October followed a successful public test phase with over 10,000 users and a minimum trading volume of $900 million during the test period.