DeFi Opportunities Within ShapeShift
There are numerous features on the new open-source ShapeShift web app, and it can be difficult to keep up with what those features do outside of providing a decent return. By understanding different DeFi strategies in the crypto space and the available opportunities offered by ShapeShift, users are better positioned to make educated DeFi decisions.
The Uniswap protocol is made up of a series of smart contracts that hold pairs of tokens. These smart contracts let you exchange any ERC tokens quickly and securely. Anyone can earn a commision for contributing their tokens to a ‘liquidity pool’, which ensures tokens are available when needed. Depending on how much you have contributed to the pool, you will receive a proportional share of fees paid by traders fees paid by traders — click here to add liquidity . At the time of writing, the v2 ETH-FOX liquidity pool on Uniswap currently contains $20.2 million.
ShapeShift v3 Farming Program
The Uniswap v2 liquidity pool allows FOX holders to provide liquidity on the decentralized exchange Uniswap. Liquidity Providers have the option to stake their ETH/FOX LP tokens in the ShapeShift staking contract. LPs who have staked their tokens in the ShapeShift staking contract receive a proportional share of the allocated FOX Token rewards. The DAO recently voted to continue its reward program on the Uniswap v2 FOX/ETH Pool, allocating 13.5 million FOX from February 22nd, 2022 to July 7, 2022, targeting a 75% APR.
FOX Token holders will continue to enjoy farming rewards and can use this helpful guide to learn how to add FOX to the FOX/ETH liquidity pool on Uniswap v2 and utilize the v3 ShapeShift LP staking contract. The continuation of this program plays an essential role in ensuring that FOX has sufficient liquidity on DEXs — such as Uniswap — read more about the new farming rewards here.
Yearn Partnership
One of the first partnerships ShapeShift established as a DAO was with Yearn.finance, whose protocol has a built-in affiliate revenue program. Through this partnership, ShapeShift integrated Yearn vaults into the new open-source v2 web app, allowing users to earn yield on their digital assets with no added fees. As the v2 platform’s capabilities expand, ShapeShift continues to enable users to enjoy the best yield and a unified user interface with no added fees.
Yearn is a yield aggregator that maximizes yield by strategically allocating liquidity to various DeFi protocols. One of the reasons Yearn is appealing is its ability to make complex yield farming strategies available to the average crypto user. At the time of writing, Yearn manages 89 vaults and implements 250 different yield-farming strategies across those vaults. The number of vaults and strategies is constantly being added as new opportunities manifest themselve.
The ShapeShift v2 web app has 62 Yearn vaults available here. These vaults allow users to easily provide liquidity with a wide range of tokens and generate yield.
DeFi Opportunities Coming Soon
The development of FOXy is one of the many things the community is excited about. While the ShapeShift DAO plans to incorporate many yield strategies in the future, this bounty focuses on building out a basic functional version of FOXy: a yield-bearing version of FOX Tokens. Once it is live, it will allow holders to stake their FOX in the FOXy contract, then share in the rewards (such as increasing partnership revenue) generated by the DAO. You can read the full FOXy proposal here in the ShapeShift forum.
ABOUT ShapeShift
ShapeShift is the only cryptocurrency trading platform offering zero-commission crypto trading and self-custody. It allows users to buy crypto with fiat, trade, track, and secure their crypto through a simple and beautiful web interface. Users always stay in control of their keys. ShapeShift is based in the United Kingdom, with offices in London, UK, and Denver, Colorado.
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