ShibaSwap: Amplifying Shiba Inu’s Potential
ShibaSwap, which evolved on the basis of the Shiba Inu coin project, is a DeFi platform that is built on the Ethereum-based blockchain. Launched on July 6th 2021. ShibaSwap is a hard fork of the SushiSwap DEX that is itself a fork of Uniswap. Its fundamental drive is majorly boosting the functionality of Shiba Inu (SHIB) tokens which could aid in propelling its valuation in the future. ShibaSwap, provides user-friendly opportunities for the investors to trade various cryptocurrencies without the need for a central authority or intermediaries which means that transactions on this platform are done on a peer-to-peer basis while still providing a vast range of features that would meet the demand of the most difficult traders. Users get to provide liquidity to pools, earn rewards in the form of SHIB tokens, and participate in governance through voting. ShibaSwap uses smart contracts to program functions and could, in theory, work on its own as long as users provide liquidity to it.
Due to the fact that the name of the platform links to a popular breed of dogs in Japan as inspired by Dogecoin, the project uses dog terminologies to tag the standard six DEX key functions it offers which includes: Dig (liquidity pools), Bury (staking), Woof (yield farming), Doggy DAO, Swap and NFT marketplace known as ‘Shiboshis’. It has a great load of passive income-generating potentials as it provides users with functions that allow them to earn token rewards. ShibaSwap majorly has three ERC-20 tokens powering its ecosystem and they are: Shiba Inu (SHIB), Bone ShibaSwap (BONE) and Doge Killer (LEASH).
What Are Shiba Inu Tokens?
Shiba Inu tokens, also regarded as ShibaSwap’s native coins, were created as a competitor to other meme coins and were built to be community-driven. A very prominent feature of Shiba Inu tokens lies in their deflationary nature. As stated earlier, ShibaSwap has three major tokens which combines to birth a liquid, secure, and profitable ecosystem and they include: SHIB, with two other Ethereum tokens namely, Doge Killer and BONE. We will further explain these tokens briefly.
Shiba Inu (SHIB)
There is still the mystery surrounding the mind behind SHIB. Popularly attributed to the pseudonymous “Royoshi”, SHIB is a Dogecoin-inspired memecoin created in August 2020. SHIB is the primary token used for trading and the storage of assets on ShibaSwap exchange. Touted as the ‘Dogecoin killer’, Shiba Inu witnessed a troop of investors and spurred into mainstream media after receiving tweets from the likes of Elon Musk and Vitalik Buterin. During its initial coin offering, the founder(s) shared one quadrillion SHIB, with half assigned to Buterin, also on report that he donated 50 trillion SHIB to an Indian COVID-19 relief fund while sending the remaining to a dead wallet. It is stated on Cointelegraph, that the remaining 500 trillion SHIB were locked in Uniswap and the private keys was discarded by the owners. Its current market cap as of the time this article was written is $ 6.63B USD with a trading volume of $317.05M USD and a circulating supply of 589,545.51B USD.
Doge Killer (LEASH)
In an attempt to kick Dogecoin off its base as the most popular in the memecoin by market capitalization, the developers of SHIB introduced LEASH as an ERC-20 token. It is majorly a utility token used for ‘farming’ and is regarded as the main store of value of coin for the investors on the project. It was initially a rebase or elastic token for Dogecoin but the developers recently ditched the rebase to increase the potential while depending on scarcity to boost its worth. It has a total scarce supply of 107,646 fixed tokens, offering various incentives and rewards on ShibaSwap.
BONE
This is a governance token gotten as a reward for the provision of liquidity, staking and farming within the ShibaSwap platform that allows the users (ShibArmy) to vote on upcoming proposals for the newest project. This means that a user holding BONE gets to propose and vote on the developments that are set to be made on the ShibaSwap ecosystem through the Doggy DAO, and the mass of this vote is subject to the amount of BONE held by a particular user. It has a total supply of 250M coins.
How Does Shibaswap Work?
ShibaSwap works by offering six functionality that incorporates ShibaSwap’s three native coins. Users get trade supported ERC-20 tokens with one another and earn rewards in the ecosystem through these functionalities which includes: Liquidity pools (DIG), Staking (BURY), Yield farms (WOOF), Burn portal, and NFTs
DIG: Digging refers to the liquidity pool function on the ShibaSwap ecosystem. This involves users depositing or locking crypto assets in pairs to either current liquidity pools on the platform or creating their own. Liquidity providers in return receive ShibaSwap liquidity provider tokens (SSLP) as rewards. These tokens signify their share of liquidity in the pool and enable holders to obtain free bone tokens upon redemption.
BURY:
With this function, users who own SHIB, LEASH and BONE can stake or bury their coins for a specific period of time in order to generate a pre-determined yield paid in BONE tokens. The yields get paid in the wrapped version of the staked tokens. For example, burying 1 SHIB yields 1 xSHIB to the users, the same goes with xLEASH and xBONE respectively. As stated on Coindesk, thirty-three percent of BONE rewards from staking are immediately available while the remaining 66% are locked up for six months although the pools distribute rewards weekly.
WOOF:
Users who hold SSLP can deposit the tokens to ShibaSwap yield farm pools to earn rewards. This function is responsible for redeeming BONE rewards by cashing out SSLP tokens on the platform. Its reward protocol is similar to BURY, where users can redeem one-third of the rewards immediately but need to lock the remaining for six months. As recorded on Cointelegraph, some ShibaSwap yield farming pools which gives rewards directly in ETH, Wrapped Bitcoin, DAI, Tether and USD Coin.
Burn Portal:
This feature of ShibaSwap permits users to burn their SHIB holdings on their own accord. By burning in this case, it means that they send the tokens to a dead address (permanently eliminating them from circulation) and in return, the platform rewards the users with Ryoshi Token (RYOSHI), an ERC-20 token clearly crafted as a burn reward.
NFTs:
Similar to Crypto Punks, ShibaSwap offers its own NFTs known as ‘Shiboshis’. They are unique NFTs users who can trade with different traits, some being scarcer and of more value than the rest. It is reported that these NFTs will be a part of the gaming project called ‘the Shiboshi Game’. This NFT project under the ShibaSwap features up to 10,000 pieces of the Shiba Inu Mascot cartoons. Holders of Shiboshi can modify their own Shiboshis in a way that suites them which invariably adds value to the NFT.
It also features additional functions like, Swap, Doggy DAO and Bone folio.
How to get started with ShibaSwap
In order to get started in a ShibaSwap platform, the
- Users will need to set up compatible crypto wallet services like: Metamask, Wallet Connect and Coinbase Wallet. The next thing a new user on the platform should do is to go over to the official landing pages and click on either ‘Get started’ or ‘Download’ and proceed to following the steps until they’ve created their own wallet.
- Obtain some ETH: When you are done setting up a wallet, next thing is to obtain some ETH because of the payment of gas fees when making transactions on ShibaSwap.
- Next is to connect your compatible wallet to ShibaSwap and you do this by simply visiting their website and clicking on ‘Connect Wallet’ to link it to your exchange.
- Deposit funds into ShibaSwap: Once the connection has been established, you can go ahead to deposit tokens into ShibaSwap to start trading. To deposit, simply click on ‘Deposit’ and select the token you want to deposit.
- Finally, you can start trading on ShibaSwap once you have deposited the funds by clicking on the “Exchange” tab. Furthermore, you can add liquidity to pools or swap tokens in order to earn trading fees.
Just like several other decentralized exchange platforms, ShibaSwap faces a number of challenges which is common among DEX platforms and they include:
- Liquidity
- Security
- Regulatory uncertainty
- Transparency etc.
Despite these drawbacks, ShibaSwap has made several advancements and has been assigned a security check core of 92 out of 100 by Certik (a blockchain-based security auditing business) and has settled 97% of the 34 challenges raised during the extensive audit of the platform. It has achieved enormous feats with potentials of doing more in the nearest future with thousands of users and investors trading millions of dollars in a day. Just like every other platform in the Crypto space, you are advised to carry out your own researches and evaluations before engaging in any form of investment on these platforms as there are risks lurking at some corners.
