Proposal for ShapeShift FOX DEX Upgrades

Proposal Discussion
1

Features to Be Integrated:

  1. Perpetual Trading
  2. Staking and Loans
  3. NFT Marketplace

1. Perpetual Trading

Objective: Introduce perpetual futures trading for crypto pairs such as BTC/FUSD, ETH/FUSD, and FOX/FUSD.

Implementation Steps:

  • Smart Contracts: Develop decentralized perpetual contracts.
  • Leverage Options: Offer leverage up to 10x for major pairs.
  • Dynamic Funding Rates: Use an automated mechanism for funding rates based on market conditions.
  • Cross-Margin Accounts: Allow users to trade using collateral across multiple assets (e.g., USDC, cbBTC).
  • Risk Management: Integrate automated liquidations and margin calls with notifications.

User Benefits:

  • Leverage trading for advanced strategies.
  • Hedge positions across multiple Layer 1 and 2 networks.
  • Seamless integration with ShapeShift’s wallet for collateral management.

2. Staking and Loans

Objective: Enable staking of FOX and major assets for governance, yield farming, and as collateral for loans.

Implementation Steps:

  • Staking Pools: Develop staking contracts for FOX and supported tokens, offering dynamic APYs.
  • Collateralized Loans: Use staked assets as collateral to borrow stablecoins like USDF.
  • Rewards Distribution: Reward stakers with FOX tokens and a share of trading fees.
  • Liquidation Mechanics: Implement safe thresholds for under-collateralized positions.

User Benefits:

  • Generate yield on idle assets.
  • Access liquidity without selling long-term holdings.
  • Strengthen FOX’s role in ShapeShift governance.

3. NFT Marketplace

Objective: Build a cross-chain NFT marketplace supporting Ethereum, Solana, Polygon, and Avalanche, Binance, BASE, Arbitrum, Polkadot, SUI, TON, Ordinals/Runes.

Implementation Steps:

  • NFT Aggregation: Aggregate listings from major NFT marketplaces for seamless access.
  • Native Minting: Enable minting of NFTs directly on supported chains.
  • Integrated Wallet: Allow NFT purchases, sales, and trades directly from the ShapeShift wallet.
  • Marketplace Fees: Charge fees in FOX and offer discounts for FOX holders.
  • Allow staking and loans of Selected NFTs.

User Benefits:

  • One stop shop for NFTs across chains.
  • Gas efficient minting and trading via Layer 2 solutions.
  • Integration of FOX rewards and discounts for community engagement.

Expected Outcomes

  • Increased Volume: Higher transaction volume on ShapeShift DEX due to new trading options.
  • User Growth: Attract traders, stakers, and NFT enthusiasts from competing platforms.
  • FOX Utility Expansion: Cement FOX as a core asset for trading, staking, and NFTs.
  • Revenue Growth: Capture fees from perpetual trading, loans, staking, and NFT sales.

Timeline

  • Perpetual Trading: 6 months
  • Staking & Loans: 4 months
  • NFT Marketplace: 8 months

Budget

N/A