As the fallout from the delisting of HEX from a decentralized exchange (DEX) continues to reverberate, Erik Voorhees, founder of ShapeShift and prominent advocate for decentralization, took to Twitter to unpack the controversial move and defend Uniswap.
In a series of tweets, Voorhees distinguishes between Uniswap as a centralized web interface and as a decentralized protocol, or DEX. The web interface is run by a centralized company, while the DEX remains permissionless and decentralized. The delisting of HEX, and other assets before it, came from the centralized web interface, not the underlying protocol.
Voorhees brings a unique perspective to the debate, reflecting on his own experience with ShapeShift. The company delisted Bitcoin SV, a decision driven by the belief that it was built on fraud, emphasizing the need for quality and standards.
“Just like a store refusing to sell scam products, or a coffee shop refusing to sell arsenic, Uniswap’s decision to delist HEX is not censorship but the exercise of discretion”, Voorhees explained. He emphasized the principle of individual liberty, and its expression via cryptocurrencies, does not preclude actors from using discretion. The market, after all, forms as a reflection of its participants.
Moreover, the beauty of decentralized finance (DeFi) lies in the fact that while the centralized company can stop supporting a specific asset, the protocol remains open and permissionless. Voorhees argues that the notion of liberty does not imply casting off discretion, rather it encourages discipline and quality in creation and consumption.
For those who truly believe in HEX, Voorhees suggests building platforms for it themselves, emphasizing that the free market doesn’t prevent anyone from offering “garbage” if they truly believe in it. The ShapeShift founder concludes that the delisting of HEX is part of the natural evolution of markets, where bad products are eventually discarded.
It’s a nuanced perspective, attempting to reconcile the values of decentralization with the practical realities of business operations. The centralized company, Uniswap, and the decentralized protocol it’s built on, are two distinct entities, requiring different standards and carrying different responsibilities. This distinction, Voorhees argues, is fundamental to understanding the dynamics of DeFi.
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