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
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 -4.05% Balancer / USD BALUSD $ 16.75
-$0.68-4.05% Volume 19.31 m Change -$0.68 Open $16.75 Circulating 6.94 m Market Cap 116.31 m 1 mon November Was the 2nd Best Performing Month for Decentralized Crypto Exchanges (DEX), After May 2 mon Tron founder Justin Sun Removes $4.2 Bln from the Lending Protocol Following Yearn & Aave’s Online Dispute 3 mon Indexed Finance's NDX Is Down 92% from ATH After $16 Million Hack Sends it Crashing CRV -7.44% Curve DAO Token / USD CRVUSD $ 4.82
-$0.36-7.44% Volume 505.1 m Change -$0.36 Open $4.82 Circulating 448.6 m Market Cap 2.16 b 3 w Bitcoin Aims for $50k Ahead of Low-Liquidity Holiday Season as Girls Who Code Refuse to “Miss Out” on Crypto 3 w Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions 1 mon Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019 BNT -1.35% Bancor / USD BNTUSD $ 3.13
-$0.04-1.35% Volume 18.81 m Change -$0.04 Open $3.13 Circulating 256.75 m Market Cap 804.9 m 1 mon November Was the 2nd Best Performing Month for Decentralized Crypto Exchanges (DEX), After May 3 mon Grayscale Makes Solana (SOL) the 4th Biggest Holding in its Digital Large Cap Fund, Adds Uniswap (UNI) too 4 mon Jack Dorsey is Building a KYC-Complaint DEX for Bitcoin with a Decentralized Identity Solution
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 -1.40% Bitcoin / USD BTCUSD $ 42,650.00
-$597.10-1.40% Volume 19.62 b Change -$597.10 Open $42,650.00 Circulating 18.93 m Market Cap 807.44 b 2 w SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 2 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum ETH -2.00% Ethereum / USD ETHUSD $ 3,268.28
-$65.37-2.00% Volume 10.95 b Change -$65.37 Open $3,268.28 Circulating 119.19 m Market Cap 389.56 b 2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 2 w The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022
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 -0.02% Tether / USD USDTUSD $ 1.00
$0.00-0.02% Volume 46.31 b Change $0.00 Open $1.00 Circulating 78.4 b Market Cap 78.42 b 2 w UST Grows 55x to Become the 4th Largest Stablecoin, Terra DeFi Ecosystem Amasses $18B in Assets 3 w Is This The Beginning of the Santa Rally? Markets Jump in Asia Session 1 mon Senate Banking Committee Split on How to Regulate Stablecoins SUSHI -4.52% SushiSwap / USD SUSHIUSD $ 6.63
-$0.30-4.52% Volume 189.16 m Change -$0.30 Open $6.63 Circulating 127.24 m Market Cap 843.78 m 2 w Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 3 w Is This The Beginning of the Santa Rally? Markets Jump in Asia Session 1 mon Polygon Rolls Out EIP 1559 Implementation to Burn MATIC Token RUNE -5.42% THORChain / USD RUNEUSD $ 6.07
-$0.33-5.42% Volume 54.59 m Change -$0.33 Open $6.07 Circulating 330.69 m Market Cap 2.01 b 3 w Cryptocurrencies Sees Fresh Signs of Green, But Will It Last This Time? 2 mon Over 160 Projects Are Launching on Terra by Early Next Year to 'Amplify Demand for UST' and Send it to $10 Bln, says Founder 3 mon New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs
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 11.86% Cardano / USD ADAUSD $ 1.54
$0.1811.86% Volume 3.39 b Change $0.18 Open $1.54 Circulating 33.53 b Market Cap 51.53 b 2 w Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 3 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report SOL -4.55% Solana / USD SOLUSD $ 143.23
-$6.52-4.55% Volume 1.34 b Change -$6.52 Open $143.23 Circulating 314.02 m Market Cap 44.98 b 2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 2 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 3 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
This has seen the protocol grow as Etherum plans to migrate to a PoS in the coming months.