Bankless Introducing ShapeShift DAO | Erik Voorhees (SotN 7/21)
Jul 21, 2021
In this engaging conversation, Erik Voorhees, former CEO of ShapeShift and a pioneer in decentralized exchanges, reveals ShapeShift's ambitious transition to a community-owned DAO. He discusses the revolutionary largest airdrop in crypto history and how decentralization can empower users. Erik dives into the challenges of navigating regulatory landscapes and shares insights on the future of decentralized finance. His passion for the crypto industry shines through as he explores the potential of DAOs to reshape traditional financial systems.
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Shapeshift's Evolution
- Shapeshift started in 2014, offering non-custodial crypto swaps across chains.
- Early Shapeshift resembled Uniswap's model before DeFi existed.
KYC Impact
- Shapeshift initially succeeded with its frictionless model, but regulatory pressure forced KYC/AML implementation.
- This led to a 99% business loss as users sought non-KYC alternatives.
DeFi Integration
- Shapeshift integrated DEXs like Uniswap and Thorchain, eliminating KYC requirements.
- Outsourcing regulated activities to decentralized protocols allowed Shapeshift to regain its non-custodial nature.