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Gas payments would be offset proportionally to FOX holders’ token holdings.
ShapeShift, a noncustodial wallet and decentralised exchange aggregator, revealed extended features for its FOX rewards token intended to reduce gas fees — or, as the group put it, to turn the token into “the Gas-Guzzling Philanthropist of the DeFi Forest” — in a blog post today.
“FOX Tokens now have the added superpower of helping you pay for gas when you trade on ShapeShift,” reads the blog. “ShapeShift will now help cover your gas costs on trades by reimbursing you with FOX.”
Users will be able to offset certain portions of their fees dependent on the amount of FOX that they hold, and each trade placed using the service rewards traders with FOX, creating what the platform calls a “beautiful cycle.”
Willy Ogorzaly, a ShapeShift product manager, told Cointelegraph that the gas mitigation feature was one of the most often demanded by customers.
“We hear from users every day that the gas fees required to complete a trade are ridiculous. Although ShapeShift cannot fix the underlying dilemma, we hoped we might make it less painful.”
According to Ogorzaly, the fee reductions apply to “any pair and any blockchain,” like Ethereum and Bitcoin transactions. Gas payments have recently become a hot topic, as the EIP-1559 fee structure overhaul approaches and incidents such as yesterday’s volatility will lead to crippling gas spikes, and other utilities such as Dhedge propose similar schemes.
The gas fee platform is only one of the team’s growing list of features and facilities. Shapeshift revealed earlier this year that it will phase out KYC specifications and combine over a dozen decentralised exchanges, and later that an alliance with THORChain would allow for noncustodial, native Bitcoin trades.
Ogozy told Cointelegraph that the platform will continue to expand its suite of services.
“ShapeShift was founded on a vision of supporting self-sovereign finance from its inception, while minimizing friction and costs to the user,” he said.
“As we’ve moved to a decentralized trading model, we are continuing to look for ways to stay true to that vision.”