Recently, we’ve seen heightened buzz and interest about ShapeShift’s wily ERC-20 token, FOX. We’ve also noted some speculation about its utility in our new, expanding world of decentralized trading and what it might become in the future.

That’s understandable—a lot has changed at ShapeShift, and even more exciting changes are on the way. Let’s shed some light on our ethereum-dwelling, furry digital native, the FOX, and how you can and will be able to use it for your own considerable advantage.

Some History: A FOX Is Born

Initially, we introduced FOX in 2019 as a loyalty token to enable commission-free trading for our users back when we were a non-custodial centralized exchange. The concept was simple: As long as you held these tokens in your wallet, you got a proportionate amount of free trading every month—the more tokens you held, the more free trading you earned, though of course standard mining or gas fees still applied. It was conceived as a “perpetual asset”—you did not need to spend your tokens to derive their benefits.

In 2020, we decided to amp up the power of FOX by introducing our Rainfall program. Rainfall is also simple and is continuing to benefit users each and every day: every time someone trades on our platform, a random FOX Token holder wins free USDC. Bigger trades means bigger rewards; and while the rewards are granted at random, the more FOX Tokens you hold, the better chances you have to win. Again, you don’t need to spend your FOX Tokens to win Rainfall awards. Simply hodl.

How FOX and Rainfall Work in the Wild World of DeFi 

Today, ShapeShift is no longer a centralized exchange that trades crypto assets with users. We have evolved, and we now provide users with the best platform to easily trade across major decentralized exchanges (DEXs), without KYC or added commissions. We even offer native (unwrapped) bitcoin trading via our THORChain integration. So, FOX Tokens are no longer needed to help our loyal customers offset the commissions typically associated with traditional centralized exchanges.

Yet, our FOX only becomes mightier. Let’s look at some of the advantages today.

Offsetting Gas Fees: The Newest FOX Superpower

We’ve already done away with commissions for all ShapeShift customers, but as any DeFi enthusiast knows, these aren’t the only financial cost of making trades. “Gas fees,” or, the fees required by the Ethereum network to compensate for the computational energy required to process and validate transactions, have increased significantly . . . and they are rising. 

While we don’t control these gas fees (they depend on market demand for the Ethereum network), FOX Tokens now have the added superpower of helping you pay for gas when you trade on ShapeShift. 

ShapeShift will now help cover your gas costs on trades by reimbursing you with FOX.

The more FOX Tokens you hold, the more fees you can offset, enabling you to trade more often (while also earning more FOX when you trade!). It’s a beautiful cycle. 

It works like this: 10 percent of the current market value of your FOX Tokens, as determined by CoinCap.io at the time of trade, can be repaid to you every 30 days in additional FOX Tokens to help reimburse you for gas costs on trades. So, if you have $50 worth of FOX, then you can get $5 worth of FOX Tokens reimbursed each month for gas fees on your trades. If you have $550 of FOX, you can get reimbursed $55 each month for gas fees on your trades (and so on). The FOX Fuel reward is calculated and rewarded when the trade is completed, and the benefit refreshes 30 days after each trade.

Since we charge no commissions, provide you with FOX Tokens on every trade, and help pay gas fees, trading with ShapeShift gives you more value than trading directly with a DEX. Stated differently, it is now always better to trade through ShapeShift than directly through a DEX.


Rainfall in a DEX World

With our new DEX-powered platform, our Rainfall program continues to grant awards to FOX holders on every DEX trade, granting hundreds of USDC awards every day (we have given around ~$53,000 in USDC awards in just the past month alone). Recently, we rewarded one user with the highest payout in the history of the Rainfall program (and the user only held 10 FOX!):

Random winnings tend to earn a fair dose of skepticism; people assume they will never win and the odds are long. This does not hold true in the case of Rainfall. While we cannot guarantee any one person will win, we have many users that have won multiple times for thousands in USDC. And it’s a win for the trader as well: they earn more FOX with every trade, increasing their chances of earning future Rainfall awards.

Decentralized exchanges typically don’t reward users for making trades; this is one reason why the FOX is mightier than the DEX alone. With ShapeShift, both traders and random FOX holders win, every time. 

While many smart contract projects reward liquidity providers and stakers with project tokens, few reward them for acquiring the assets of other projects. With ShapeShift, each time you trade into any token we list, you earn FOX, increasing your odds of winning USDC through Rainfall and gaining even more advantages. 

To capitalize on these advantages, we recommend earning more FOX Tokens to get the most value for your trades. But . . . how?

How You Can Earn FOX Tokens

When you sign up for an account with ShapeShift, you immediately earn 10 FOX Tokens (KYC not required!). Here are other ways you can keep earning even more FOX: 

  • Each time you trade, you earn FOX (larger trades earn more tokens)
  • Refer friends: earn 10 tokens each time you a refer a friend that trades, and earn more each time one of your referrals makes a trade
  • Watch our twitter, @ShapeShift.io, for token promotions 
  • Sign up for our product promotions and updates for more opportunities to earn:

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ShapeShift doesn’t sell these tokens, but you can buy them from others in the community via our DEX integration. Just go to the Trade screen in the ShapeShift app and select FOX.  

What Could Our ShapeShifting FOX Be Up to Next?

ShapeShift was formed to help drive the mission of borderless, decentralized finance forward (before “DeFi” was even a thing!). 

FOX represents our company and dedication to this mission in tokenized form—and we will continue to build upon its utility in the months ahead. Our users will enjoy the advantages of the community we are building, while at the same time participating in self-sovereign finance across the entire ecosystem. 

More to come! Be sure to sign up for our updates.