What Can I Do With My FOX?
FOX is an ERC-20 token created by ShapeShift, which serves as the governance token for the ShapeShift DAO. FOX token holders can vote on proposals relating to the treasury of the DAO and other essential governance matters such as approving partnerships, workstream budgets, and other initiatives. In addition to leveraging their governance abilities, token holders can also utilize several unique DeFi strategies to maximize the benefits of owning FOX. The total capped supply of FOX is 1,000,001,337 tokens; this is a fixed amount, ensuring FOX will never become an inflationary token.
At this point, you might be wondering, “What else can I do with my FOX outside of the ShapeShift app?”
To get started on making the most of your FOX, check out the current incentivized liquidity programs below. We will briefly explore each of these programs, in addition to providing a brief explanation of the governance function of FOX.
The goal of the ShapeShift DAO is to become the world's most influential crypto organization by building a digital asset platform that delights, protects, empowers, and inspires those around us. Our vision is a borderless financial system built on open, decentralized protocols. FOX tokens are a tool that the community can use to achieve this mission, both by funding proposals and by bootstrapping network effects. As the ShapeShift ecosystem expands to include more revenue-generating opportunities for the DAO via affiliate partnerships (i.e., earning yield, buying/selling/trading crypto and NFTs, buying swag, or a y.at emoji), the importance of effectively managing the delegation of these funds and resources become increasingly critical to the success of the organization.
The ShapeShift DAO is powered by SafeSnap (SnapShot + Gnosis Safe), which means community members can vote on proposals with zero gas fees, and the result of those votes can trigger on-chain transactions from the DAO’s Gnosis Safe - view the ShapeShift SnapShot.
Single-sided asset exposure can help mitigate the risk of impermanent loss when participating in DeFi strategies. You only need one asset to stake and earn yield, making entering these positions more straightforward.
The current single-sided staking options for FOX are:
- Bancor (Mainnet)
Bancor was one of the first automated market makers (AMM) in 2017 – well before “DeFi” was a large-scale phenomenon as it is today. Like SushiSwap and Balancer, users can lock crypto assets in pools in exchange for a share of the fees paid when bought and sold by traders. Bancor aims to increase the liquidity of niche crypto-asset markets by offering incentives for users to create and maintain pools of assets - read more about Bancor.
Users can single-sided stake FOX to earn FOX and BNT trading fees here.
- Tokemak (Mainnet)
Tokemak creates sustainable DeFi liquidity and capital-efficient markets through a convenient and decentralized market-making protocol. The platform allows for increased transparency and democratization of liquidity provision via its native token (TOKE), enabling liquidity to flow more freely and efficiently across markets - read more about Tokemak.
Users can stake FOX (again, this one is single-sided, so no worries about depositing a second token) to earn TOKE rewards via the Tokemak reactor. TOKE is earned through participation in the protocol and is utilized to direct liquidity and governance.
Learn how to stake your FOX on TOKEMAK here.
Through a single-sided staking contract provided through ShapeShift on Ethereum Mainnet, FOXy is an ERC20 rebasing Token redeemable 1:1 with FOX Tokens. The goal of FOXy is to evolve FOX into a yield-bearing Token that provides FOXy holders with an effortless, gas-efficient way to earn an optimal yield on their FOX. The DAO achieves this initially by utilizing the Tokemak reactor, which enables staked FOX to earn TOKE rewards. The DAO will then convert their TOKE rewards from the reactor to FOX, which will be used to reward FOX stakers. With historically high gas fees on Ethereum (the leading player in the DeFi space), FOXy is a great way to bring inclusiveness and yield access to investors with any amount of capital. By combining FOX rewards from DAO revenues and compounded rewards earned from protocols such as Tokemak, FOXy provides FOX holders with an effortless way to maximize their yield on FOX Tokens.
How do I Earn with FOXy?
The FOXy contract will reward FOXy holders by rebasing their accounts with more FOXy to match the amount they have generated with their staked FOX. This is how ShapeShift distributes profits equitably to contract participants. Through FOXy, everyone receives the same percentage of profits一commensurate with the amount of FOXy they hold一per epoch.
To stake FOX, go to app.shapeshift.com and select "stake." You will send your FOX to the staking contract and receive FOXy on a 1:1 basis. FOXy is a transfer-restricted rebasing Token and is not meant to be traded or used for anything except holding.
If you are long on FOX, FOXy is the smart contract for you. Not only are you able to save on hefty Ethereum gas fees, but you are rewarded in FOX Tokens instead of the standard TOKE that the Tokemak reactor offers. The best part is this all occurs without having to re-stake, harvest, or manage your FOX Tokens.
While the initial version of FOXy focuses on building out a basic functional version of FOXy, using only a single yield strategy of depositing FOX into the Tokemak Reactor (yielding in the range of 20 - 40% annually). The DAO envisions FOXy incorporating many more yield strategies in the future.
Providing a pair of tokens offers pools more flexibility and security for more potentially risk-exposed DeFi strategies. Think of staking as being similar to depositing money in a bank. An investor locks up their assets and, in exchange earns rewards, or "yield." Staking is a term used to refer to the delegating of a certain number of tokens to the governance model of the blockchain (or platform), thus locking them out of circulation for a specified length of time. A particular network's protocol locks up an investor's holdings – similar to depositing money in a bank and agreeing not to withdraw it for a set period.
Staking can increase the value of a token by limiting its available supply. Additionally, the tokens can be used to govern the blockchain if the network uses a proof-of-stake (PoS) system. In PoS systems – Cosmos is a good example – coins are staked to forge new blocks in the blockchain, for which participants are rewarded.
ELK Finance (Gnosis)
Elk is a peer-to-peer network for cross-chain value transfers and blockchain interoperability. ElkNet, the powerful cross-chain engine at the heart of the network, allows for secure and efficient transfers of value and information, reducing friction and asset fragmentation between blockchains. Community projects and developers can also build dynamic multi-chain applications that leverage ElkNet.
Users can supply liquidity to FOX/ELK liquidity pool on the Gnosis chain via ELK Finance and earn $ELK rewards. $ELK is the life force of the Elk Finance ecosystem; it is used for cross-chain value transfer and governance, and will be used to mint their stablecoin, CHFT.
SushiSwap is a decentralized exchange (DEX) running on Ethereum where users can buy and sell crypto assets. Like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools (which are often incentivized via “liquidity mining”) to achieve this goal. Users can lock up assets into smart contracts, and traders then buy and sell cryptocurrencies from those pools, swapping out one token for another. SushiSwap is permissionless, meaning that it allows users to trade cryptocurrencies without a central operator or administrator.
Users can supply liquidity to a FOX/WETH liquidity pool on the MATIC chain via SushiSwap and earn $MATIC and $SUSHI rewards. Holders of $SUSHI - SushiSwaps native token - make decisions relating to the SushiSwap platform. Anyone holding a balance of the asset can propose changes to how it operates and vote on submitted proposals by other users. Learn how to farm FOX tokens on SushiSwap.
THORChain is a decentralized cross-chain liquidity protocol based on the Tendermint and Cosmos-SDK, which uses a newer cryptographic primitive called Threshold Signature Schemes. It does not peg or wrap assets; it simply determines how to move them in response to user actions. THORChain observes incoming user deposits to vaults, executes business logic (swap, add/remove liquidity), and processes outbound transactions. The DEX is primarily a ledgerless vault manager, which aims to ensure that every stage of the process is byzantine-fault-tolerant - or difficult for a single actor (or group of actors) to control. THORChain’s key objective is to resist centralization and capture while facilitating cross-chain liquidity. The platform only secures the assets in its vaults and provides crypto-economic guarantees that those assets are safe. Learn more about THORChain here.
Users can supply liquidity to a FOX/RUNE liquidity pool via THORChain and earn RUNE rewards. $RUNE provides the economic incentives required to secure the network and coordinate liquidity. It has four key components: liquidity (as a settlement asset), security (as a Sybil-resistant mechanism and a means for driving economic behavior), governance (signaling priority on-chain), and incentives (paying out rewards, charging fees, subsidizing gas) - learn more here.
Giveth is a community focused on Building the Future of Giving using blockchain technology. Giveth offers innovative open-source solutions built on blockchain technology, which is inherently decentralized. You can now stake your FOX/HNY tokens in the RegenFarm and grow your rewards! The farm offers FOX incentives for FOX/HNY LPs on Honeyswap. When you claim earned rewards from the FOX/HNY RegenFarm, you activate your FOXstream — a stream of $FOX that flows continuously until December 2026.
Using the GIVstream, Giveth has created an elegant evolution to traditional liquidity mining that enables high APRs while decreasing sell pressure, attracts and rewards long-term hodlers, and keeps participants invested in the project for years to come.
1Hive is a Decentralized Autonomous Organization (DAO) whose mission is to create valuable public goods through an engaged community and an economic model capable of producing substantial long-term growth. 1Hive’s governance model is secured by Conviction Voting, an on-chain social contract (Covenant), and an arbitration failsafe (Celeste), which work together to ensure the value and direction of the 1Hive ecosystem. The native governance token for 1Hive is Honey ($HNY) - read more about 1Hive.
When it comes to lending and borrowing FOX tokens, holders can access three pools on Rari Capital: the Tetranode Locker Rari Pool (“pool 6"), the FOX and Frens Pool (Operated by the ShapeShift DAO; “pool 79”), and “ChainLinkGod's / Tetranode's UpOnly Pool (“pool 7”).
Agave rewards depositors with passive income and lets them use their deposits as collateral to borrow and lend digital assets. On Agave you can borrow FOX and supply FOX as collateral, earning yield from borrowers.
Users can use FOX as collateral to borrow funds. If you do not want to sell your FOX but instead want to borrow against it, these pools offer an excellent solution for you.
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 DAO and dedication to this mission in tokenized form—and we will continue to build upon its utility in the months ahead through further DeFi integrations, the previously mentioned FOXy contract, and much more. Our users will enjoy the advantages of this steadily-growing community, while at the same time participating in self-sovereign finance across the entire ecosystem.
More to come!