Crypto Exchange ShapeShift Revamps to Become a DEX Aggregator; Removes KYC
In a complete turn-around, the cryptocurrency exchange ShapeShift has announced a newly revamped platform to integrate popular decentralized exchanges, moving in direct competition with the likes of 1Inch.
This soon to be launched aggregator will include Uniswap, Curve, Balancer, Bancor, Kyber, 0x, mStable, and other DEXs. The exchange will be getting a portion of the trading fees that each of these DEX charges.
To better protect its users while increasing privacy, security, and transparency, ShapeShift will allow its customers to trade directly with the external protocols rather than using the exchange as an intermediary.
As part of this has revamped trading service, the exchange won't be requiring any know your customer (KYC) requirements from traders.
“Centralized exchanges are black boxes: there is no way to audit them from the outside. You have to trust the operators of that exchange and any other party that can access that data, and that trust is often breached,” said Erik Voorhees, CEO of ShapeShift adding in this open-source finance, their goal is to protect people and bring transparency to the financial system.
For now, Ethereum and ERC20 tokens are supported crypto assets with Bitcoin to be added in Q1 2021.
Besides offering lower fees and reducing the counterparty risk, users will also get to earn FOX tokens on every trade they do while using ShapeShift through DEX protocols.
Promoting zero commission and trading fees, ShapeShift has introduced ERC20 FOX tokens that are not sold by the exchange and is supported by Portis, KeepKey, and Trezor wallets.
“The pace of innovation in decentralized technology is inspiring,” said Voorhees. “These borderless, open source projects have created a far safer user experience, so we’ve decided to integrate them into ShapeShift’s platform going forward.”