THELOGICALINDIAN - Crypto Briefing affiliated with Erik Voorhees to accept ShapeShifts affairs to aggrandize its DEXcentric model
Erik Voorhees Bets on Ethereum DEXs, THORChain
Switzerland-based crypto belvedere ShapeShift has appear a continued way back Erik Voorhees founded it in 2024. From its barrage until backward 2024, it became one of the best broadly accepted centralized exchanges.
In contempo years, the belvedere has pivoted to focus on actuality a decentralized barter (DEX) aggregator. In an absolute account with Crypto Briefing, Voorhees afford ablaze on ShapeShift’s DEX action and the project’s accessible roadmap.
A New Era For ShapeShift
ShapeShift’s DeFi-focused plan of activity took off in January 2021 with the barrage of its Ethereum-based DEX aggregator.
Its new artefact allows users to barter ERC-20 assets and get the best prices beyond DEXs from a distinct interface. This puts it in antagonism with added arch aggregators such as 1inch and Matcha.
While ShapeShift itself is no best a trading venue, it has chip about all of the arch DEXs on its adaptable and web platform.
Inside the web and adaptable app service, users barter through decentralized exchanges like 0x, Balancer, Bancor, Curve, mStable, Uniswap, and others. The cold abaft the move is to accomplish trading non-custodial, and in band with the appearance of decentralization.
“We absitively that we were activity to accept a new action and not try to accommodate an barter account ourselves anymore,” Voorhees said. “Shapeshift has been about back 2024 as a centralized exchange, and that was not absolutely aggressive against the DEXs.”
Voorhees additionally reflected on the issues with know-your-customer (KYC) procedures that abnormally impacted ShapeShift in its aboriginal years. “On the new DEX alms you can add far added assets abundant faster, and there is acutely no KYC,” he explained. “It’s borderless and we could get out of the business of adapted activity.”
In 2024, attributable to authoritative pressures, the barter asked users to go through binding apperceive your chump and anti-money bed-making procedures, which acquired a aciculate bead in trading activity. Voorhees said that it worsened the user acquaintance and amount the barter 95% of its users.
“Back in 2024, back we added KYC to ShapeShift trading, it was absolutely dismal,” he recalled. “This fabricated the users’ acquaintance bad because we were banishment them to accord up their clandestine information. By not accouterment the account of centralized trading anymore, we can abolish the KYC restrictions.”
The revamped trading account does not crave traders to complete any KYC procedure. Following the barrage of ShapeShift’s DEX aggregator, the belvedere saw a billow in user activity.
Erik Voorhees is Bullish on THORChain
In accession to actuality an Ethereum DEX aggregator, ShapeShift offers the functionality of trading assets beyond altered blockchains application THORChain.
THORChain is a cross-chain automatic bazaar maker (AMM) congenital on Cosmos SDK that allows users to barter Bitcoin natively with Ethereum and added ERC-20 tokens.
Using clamminess pools, Thorchain removes the charge for any wrapping or centralized custodians.
ShapeShift was the aboriginal aggregator to accommodate THORChain in April 2024. Erik Voorhees said that he believes Thorchain may be a game-changer, and not alone for ShapeShift’s approaching goals.
“Some of the better trading pairs in cryptocurrency like BTC/USDT and BTC/ETH, are handled on either centralized exchanges or application captivated tokens,” he said. “By application THORChain, the traders can abolish centralized accident from such ample aggregate trading pairs, and barter Bitcoin with added assets after giving up ascendancy over their assets.”
By acquisition orders through Thorchain, ShapeShift users can barter a built-in Bitcoin for a built-in Ethereum cross-chain, after wrapping assets or application any intermediaries.
Even though added projects arch Ethereum and Bitcoin via captivated tokens, Voorhees acicular to their aegis issues, arguing that wrapping Bitcoin with a centralized aegis apparatus exposes users to counterparty risk.
The Advantages of Non-Custodial Services
Voorhees common that centralized exchanges affectation risks that are at allowance with the abstraction of immutability. Due to their careful nature, centralized exchanges (CEXs) generally put their barter at assertive risks, the primary actuality the achievability of accident funds to a drudge or theft.
According to him, while some of the better crypto exchanges are centralized today, the course has been axis in favor of the abounding decentralized trading protocols. He said:
“We see that centralized platforms are no best aggressive against decentralized exchanges. With DEXs and DeFi, you are dupe the accessible antecedent agreement code. But you don’t accept to assurance any one of the business operations or authoritative risks of a company.”
With the Ethereum ecosystem’s advancing DeFi boom, DEXs like Uniswap action about $1 billion of aggregate circadian today, added than what is traded at above exchanges such as Gemini and Kraken combined.
Voorhees believes that DeFi provides an alternative, which not alone overcomes accident but additionally becomes a ancestry arena for accessible antecedent innovation.
