Cryptocurrency Exchange ShapeShift Reveals Gas Fee Mitigation Functionality With FOX Token Rewards


Non-custodial exchange ShapeShift has announced new functionality to help decentralized finance (DeFi) users on its platform cut costs.

FOX Holders To Be Rewarded

According to a blog post on its website, ShapeShift says that users will now reduce their gas fee trades by holding their native token FOX.

This new functionality called “superpowers” of its FOX tokens will see users reimbursed for amounts spent trading on the ShapeShift platform.

ShapeShift will cover the gas fees, and users will get their rewards relative to the number of FOX tokens held within a 30-day window.

Users would be paid 10% in the relative market value of FOX, according to ShapeShift.

ShapeShift, founded in 2014 and headquartered in Switzerland, has reoriented its business model in the last few years. In Sept. 2018, the blockchain platform added a know-your-customer (KYC) protocol citing growing pressures from regulators. Speaking on the measure years later, CEO Erik Voorhees said that this step saw over 95% of its customer base leaving.

In 2020, the centralized crypto exchange integrated with multiple DEX platforms like Uniswap, Balancer, Curve, Bancor, and several others. Following the transition, the exchange dropped its trading desks along with the KYC rules. BAL -6.79% Balancer / USD BALUSD $ 26.22
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2 w Ethereum Scaling Solution Arbitrum Now Available for Public Use, Developer Offchain Labs Raises More Funds at a $1.2B Valuation 2 w Jack Dorsey is Building a KYC-Complaint DEX for Bitcoin with a Decentralized Identity Solution 4 w Polygon Continues Expansion Play With DeFi Focus, Forming A Decentralized Autonomous Organization (DAO)
CRV 0.50% Curve DAO Token / USD CRVUSD $ 3.09
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2 w Jack Dorsey is Building a KYC-Complaint DEX for Bitcoin with a Decentralized Identity Solution 2 mon 99% of Cryptocurrencies are 'Overpriced' per DCG’s Barry Silbert, But ETC Isn’t One of Them 3 mon Financial Institutions 'Should be Concerned' of Competition from Crypto/DeFi Businesses: Mark Cuban

From KYC Fiasco to DeFi Trendsetter

Moving on to the booming DeFi space, ShapeShift enabled cross-chain swaps via THORChain and Ethereum-based DEX trading on their web trading platform. This made it possible for users to store Ether and ERC-20 tokens on a range of hardware wallets like Trezor, KeepKey, and Ledger.

This upgrade made ShapeShift the first crypto exchange to enable BTC and ETH trades on a hardware wallet. BTC -0.14% Bitcoin / USD BTCUSD $ 47,438.20
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Volume 28.64 b Change -$66.41 Open $47,438.20 Circulating 18.82 m Market Cap 892.72 b
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In addition, the company added USDT and SUSHI tokens to the THORChain-enabled trades, which allow users to hold, send, and receive native RUNE tokens on their ShapeShift wallets. USDT -0.01% Tether / USD USDTUSD $ 1.00
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SUSHI -13.14% SushiSwap / USD SUSHIUSD $ 13.20
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Volume 1.23 b Change -$1.73 Open $13.20 Circulating 127.24 m Market Cap 1.68 b
7 h AVAX Hits A New ATH as 3AC and Polychain Lead $230M Investment to Accelerate DeFi on Avalanche 1 d DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 1 w Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million
RUNE -2.82% THORChain / USD RUNEUSD $ 9.97
-$0.28-2.82%
Volume 108.98 m Change -$0.28 Open $9.97 Circulating 224.41 m Market Cap 2.24 b
1 d DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 1 w DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL 3 w Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet

Gas Fees Hurting DeFi

Rising gas fees, which are transaction costs for trading on the Ethereum network, have become a major issue for DeFi users in the past couple of months. The DeFi space has boomed, recording a 15% stake in the entire crypto market this year alone.

But the nascent crypto sub-sector has not overcome its challenges, or the Ethereum network has not been able to. Ethereum has become the official home of most decentralized applications (Dapps) built with blockchain technology.

The platform, which has since boomed following the rise of non-fungible tokens (NFTs), has suffered from continued rising gas fees and network congestion.

This has seen many developers and builders search elsewhere for alternatives.

Some rival protocols like Cardano (ADA) and Solana (SOL) are currently working on addressing this issue. Cardano, joined by other “Ethereum killers,” uses a proof-of-stake (PoS) mining protocol that is energy-efficient and cost-effective. ADA -2.28% Cardano / USD ADAUSD $ 2.36
-$0.05-2.28%
Volume 2.47 b Change -$0.05 Open $2.36 Circulating 32.04 b Market Cap 75.69 b
4 h It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 3 d Polygon to Integrate EY’s Blockchain Solutions Into Its Ecosystem 3 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows
SOL -5.73% Solana / USD SOLUSD $ 143.84
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Volume 4.55 b Change -$8.24 Open $143.84 Circulating 296.83 m Market Cap 42.7 b
4 h It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 6 h Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers 1 d DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700

This has seen the protocol grow as Etherum plans to migrate to a PoS in the coming months.

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