Crypto exchange ShapeShift lives up to its name as it once again swaps business structures – now thoroughly dropping the know-your-customer (KYC) in the hopes of going full DeFi. The Coloradoan noncustodial crypto firm announced this Wednesday its plans to integrate a slew of DEX protocols that offers its traders much lucrative pricing, liquidity, security, and asset availability.
Even before tthe announcement, ShapeShift has gradually phased out its KYC policy and centralized trading activity in exchange for more decentralized activities. ShapeShift plans to become 100% DEX – claiming that it would ultimately be for the benefit of its customers and supporters.
Voorhees states that ShapeShift’s initial model was specifically designed to safeguard its users. Without the need for any custodians, the exchange offers instant liquidity. To live up to this promise, Voorhees says that ShapeShift needs to be the market maker/counterparty. He adds that DeFi protocols now undoubtedly provides a much superior service – the firm isn’t afraid to embrace this change; thus, its decision to fully become decentralized.
Lastly, Voorhees noted that such a change wouldn’t be challenging for noncustodial services, such as that of ShapeShift. According to the CEO, the firm is a natural fit for the upcoming DeFi integrations, and the announced DEX features to be added may just be the start of many more to come.