Shiba Inu (SHIB) is a prominent meme coin in the cryptocurrency space. Popularly known as “Dogecoin killer,” Shiba Inu has evolved from a mere competitor of Dogecoin to a major blockchain project with an expanding ecosystem. A significant member of this ecosystem is ShibaSwap – a DeFi protocol that allows users to exchange assets without needing an intermediary.
This piece is curated to provide information on the ShibaSwap platform, its native tokens, features, and how to use the platform.
What is ShibaSwap?
ShibaSwap is the native decentralized exchange (DEX) of the Shiba Inu coin. It was launched in July 2021 and runs on the Ethereum blockchain. Like most DEXes, ShibaSwap is primarily designed to allow users to swap tokens easily via the use of liquidity pools.
Furthermore, ShibaSwap offers a range of intriguing features, which include staking, yield farming, community governance and non-fungible tokens (NFT). According to CoinMarketCap, the ShibaSwap platform currently has a 24h trading volume of over $13 million. The crypto asset exchange has proven to be a successful project, onboarding over 585K users within a year.
The ShibaSwap platform is powered by the three primary tokens of Shiba Inu’s ecosystem, namely – Shiba Inu (SHIB), Doge Killer (LEASH), and Bone (BONE). These tokens work to maintain the liquidity, security and profitability of ShibaSwap. Let’s take a look at each of these tokens.
Shiba Inu (SHIB)
SHIB was created in August 2020 by an anonymous founder named Ryoshi. It is an Ethereum-based meme coin and shares the same mascot – the Shiba Inu dog – with Dogecoin (DOGE), the premier meme coin. SHIB is the native token of the Shiba Inu ecosystem. It was also the first coin to be listed and incentivized on ShibaSwap.
The SHIB token was launched with an initial supply of one quadrillion. However, Ethereum founder Vitalik Buterin who owned half of all SHIB tokens, burned 90% of his holdings in May 2021, bringing down the total supply of SHIB to 549 billion. As of writing, SHIB trades at a market price of $0.00001221.
BONE is the governance token of the ShibaSwap protocol. Users of ShibaSwap can stake BONE tokens to receive tBONE, which grants them voting rights to confirm or reject any proposed changes to the ShibaSwap exchange. The more tBONE tokens you own, the more voting power you have. That said, BONE has a total supply of 230 million, with a circulating supply of 6.9 million. In addition, its current price stands at $1.84.
Doge Killer (LEASH)
LEASH is another incentivized token of ShibaSwap. LEASH was initially intended to serve as a rebase token of DOGE. Rebase tokens employ an algorithm to keep a fixed price by adjusting their supply based on the price of another asset.
However, the developers’ team changed plans and instead launched LEASH with a fixed total supply of just 107,464 tokens. Due to its low supply, LEASH is the most valuable token of the Shiba Inu ecosystem. At the time of writing, one LEASH trades at $570.92.
Features of ShibaSwap
The ShibaSwap DEX is equipped with six main features. Some of these features serve as mediums through which users can earn rewards with the ShibaSwap tokens – SHIB, LEASH and BONE.
Here is an explanation of each feature on ShibaSwap.
DIG is a liquidity pool feature on ShibaSwap. It allows users to deposit crypto assets in pairs to existing pools or create a new pool. As a liquidity provider on SwibaSwap, you receive ShibaSwap Liquidity Pool tokens (SSLP) representing your portion of a liquidity pool. The SSLP tokens must be deposited into an allocated pair box of your pool to start earning returns.
WOOF is used by ShibaSwap investors to redeem the returns on their SSLP tokens in BONE. Only 33% of these returns can be instantly claimed, while the remaining 66% are locked up for six months.
The BURY feature allows investors to stake SHIB, LEASH, and BONE on ShibaSwap. In return, Investors are rewarded with BONE tokens and ETH transaction fees – a portion of which is usually paid in the respective staking asset.
Stakers on ShibaSwap usually receive xSHIB, xLEASH, or tBONE depending on the asset they stake. These tokens represent their portion in a staked pool. On ShibaSwap, staking rewards are usually paid out weekly. And like SSLP returns, only one-third of these rewards are available to stakers; the remaining two-thirds are time-locked for six months.
As the name implies, SWAP enables ShibaSwap users to exchange one asset for the other. There are 56 available trading pairs on ShibaSwap. The assets that make up these pairs include Wrapped Bitcoin (WBTC), Ethereum (ETH), USD Coin (USDC), Wrapped ETH (WETH), Tether (USDT), etc.
The DOGGY DAO serves as the decentralized autonomous organization of ShibaSwap. It is the exchange’s governance system in which the community members vote on any proposed update to the protocol. Via the DOGGY DAO, ShibaSwap users also vote on adding any project to the liquidity pools on the exchange. To be part of the DOGGY DAO, you must hold tBONE, obtained from staking the BONE token.
The NFTS feature on ShibaSwap is to allow users to buy, sell and mint Shiboshis, a collection of 10,000 exclusive NFTs of the Shiba Inu dog cartoons. These Shiboshis vary in their traits, attributes and values, making each one a unique collectible.
How to use ShibaSwap?
To use ShibaSwap, you simply need to carry out the following steps.
1. Set up a crypto wallet.
Firstly, you will need to have a compatible crypto wallet to use ShibaSwap. There are only three crypto wallets compatible with ShibaSwap: MetaMask, Coinbase Wallet and WalletConnect.
2. Deposit ETH into your wallet
You will need ETH to pay the gas fees of every transaction you make on the Ethereum network on which ShibaSwap is built.
3. Connect your wallet to ShibaSwap
Log on to ShibaSwap.com. On the ShibaSwap dashboard, select the “Connect Wallet” icon to link your crypto wallet to ShibaSwap.
Having completed the steps above, you can now use all features of the ShibaSwap DEX. Remember, you can easily use the Swap feature to convert your ETH to SHIB, LEASH or BONE if you desire to partake in staking or setting up a liquidity pool.
Frequently Asked Questions
What is the purpose of ShibaSwap?
ShibaSwap is a decentralized exchange used to swap one asset for another. You can also stake specific assets on ShibaSwap and earn rewards.
Is ShibaSwap safe?
Yes, ShibaSwap is safe. In 2021, Certik, a prominent blockchain-based security platform, rated ShibaSwap with a security score of 92/100. As of now, ShibaSwap has resolved 97% of all issues raised by the security firm.
What coins are on ShibaSwap?
On ShibaSwap, you can exchange several assets, including ETH, MATIC, USDT, DAI, AAVE, WETH, WBTC, USDC, etc.
ShibaSwap is an innovative blockchain project by the Shiba Inu developers. It offers investors access to several popular assets, as well as, ways of earning some passive income on their investments.
Moreover, with its features and unique naming system, ShibaSwap serves as a driving force in the adoption of SHIB and the other tokens of the Shiba Inu ecosystem – LEASH and BONE.
That said, ShibaSwap is just like any other DeFi protocol, and you are reminded to consider all risks involved before making any investment.