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Abstract

Proof of Reserves (PoR) enables centralized crypto exchanges to demonstrate that on-chain reserves are sufcient to cover customer liabilities. However, existing approaches, including Merkle-tree-based proofs and zero-knowledge PoR systems, remain difcult for everyday users to verify in practice, resulting in limited participation and weakened transparency. We introduce LPOR, a layered, usability-focused PoR framework that separates lightweight user-side checks from auditor-level cryptographic verication, enabling non-technical users to verify inclusion and publicly recompute total liabilities with minimal friction. By lowering verication barriers, LPOR increases user participation and substantially improves the probability of detecting omitted liabilities. We evaluate its scalability and omission detectability at a multi-million-user scale.