Cryptocurrency Exchange Without Depot ShapeShift today announced the integration of nearly a dozen DEX (Decentralized Exchange) protocols – a move that will relieve both the company and users of Know Your Customer while providing merchants with superior liquidity, pricing, asset availability and security should offer.
Prior to the integrations, ShapeShift urged users to undergo a KYC process in order for the company to comply with legal requirements as the exchange served as the counterparty for user trades. In an interview with Cointelegraph, Erik Voorhees, CEO of ShapeShift, said that regulated services continue to operate on assets that are not currently available through DEXes, such as: B. native Bitcoin (BTC), but that “all non-DEX business with ShapeShift will be discontinued later” in the year.
“By integrating our users directly into DEX trading, we are no longer part of the trading. We are not a custodian, counterparty or intermediary of any kind at any stage of the process, ”said Voorhees. “So we’re a pure software technology company, and we’re not regulated in that capacity because we’re not doing any regulated work.”
According to Voorhees, the newly supported DEXs include popular decentralized finance protocols “Uniswap, Balancer, Curve, Bancor, Kyber, 0x, mStable” and a half dozen others. In addition, the list of integrations will be “expanded further when DEX technology allows”.
The ShapeShift move is part of a broader trend in exchanges, wallets, and other crypto services enabling access to DeFi platforms – a movement that, according to Voorhees, has emerged from the maturation of a DeFi ecosystem that “will quickly surpass the status quo . ”
However, Voorhees noted that he is suspicious of “centralized depot services” that DeFi, also known as “CeDeFi,” provide access ramps – a phenomenon that Voorhees believes will be short-lived.
“They are incompatible because they have to censor users and set up access controls. For example, a centralized exchange in Venezuela is constrained by capital controls, while DeFi is not (a decentralized protocol works the same way in Venezuela as elsewhere). “
In contrast, Voorhees argued that unsafe services like ShapeShift are more naturally apt for DeFi integrations, and as such, those initial DEX integrations could also form the basis for a wider range of casseroles to more diverse DeFi products – including the hinted Voorhees a decentralized bitcoin exchange service.
Ultimately, providing these services to users is not a benefit but a market reality.
“There was decentralized trading two or three years ago, but it wasn’t liquid or simple enough to be compelling on a large scale,” he said.
“That has changed, and in the course of the development of the industry we have to do this too. We always have to work in the interests of our users and towards the further development of self-sovereign financing.”