What is ShibaSwap?
ShibaSwap is a decentralized exchange platform that is utilized to expand the utility and capabilities of the SHIB token ecosystem. This was introduced in 2021 and features decentralized exchange (DEX) and passive income-generating services such as staking, yield farming, and liquidity pools in its ecosystem.
ShibaSwap is a fork of SushiSwap. SushiSwap is a popular DEX that is a fork of Uniswap.
The three main tokens used by ShibaSwap are SHIB, Doge Killer (LEASH), and Bone (BONE).
- Shiba Inu (SHIB)
This Dogecoin-inspired meme coin was introduced in August 2020. During the initial days, the funders one quadrillion SHIB, and half was given to the co-founder of Ethereum (Vitalik Buterin). The remainder of the tokens were later transferred to a dead wallet, and Buterin later contributed 50 trillion SHIB to an Indian COVID-19 relief fund. Nevertheless, there existed a 500 trillion SHIB that was locked in Uniswap, and the owners had thrown away the private keys.
- Doge killer (LEASH)
As a rival to Dogecoin, Doge Killer is a cryptocurrency that operates within the Shiba Inu ecosystem. Initially, the value of LEASH was decided to be 1000 times more than Dogecoin, but due to the market dynamics, this peg has failed. Currently, LEASH functions as an independent ERC-20 token with a fixed supply of only 107,647 tokens.
- Bone (BONE)
Users can suggest and vote on modifications to the ShibaSwap protocol by holding BONE. There is a limit of 250 million BONE coins available.
How to use ShibaSwap?
Here is the step-by-step tutorial on how to use ShibaSwap. Check it out!
Step 1
The initial step is connecting the Web wallet to the platform. The wallet should possess the ability to interact with the smart contracts. Wallets that work with ShibaSwap are TrustWallet, MetaMask, and BraveWallet.
Step 2
Contribute funds to the trading pair’s liquidity pool that the user is interested in. The user will receive liquid tokens indicating the user’s stake in the network. The significance of these tokens comes during the participation of users in trades and earn rewards. Users can deposit the Dig, Bury, Woof, and Burn Portal.
Step 3
Commence trading with the liquidity tokens in hand. The exchange rate is inconsistent and this can be determined with the automated market marker system.
Step 4
After trading if the user has leftover tokens, they can be converted back into the desired asset and withdrawn to the user’s wallet. So that the user can take profit or move the asset to any other platform.
Featutres of ShibaSwap
A variety of features are offered by ShibaSwap and some of them are listed below:
- Token exchange: Allows users to exchange several crypto tokens directly.
- Liquidity pool: Users can provide liquidity for certain token pairs, and rewards are received in the form of SSLP tokens.
- Staking: Enables users to lock tokens in order to receive BONE token incentives.
- Governance: BONE token holders are given the privilege to participate in decision-making via Doggy DAO.
- NFT market: A platform for NFT trading.
How does ShibaSwap work?
ShibaSwap works by providing several functions along with three tokens. The rewards can be earned via four main channels and the brief notes on those channels are given below.
1. Dig
This is ShibaSwap’s liquidity pool function. Anyone using this function can deposit asset pairs to the existing liquidity pools on ShibaSwap. Liquidity providers on ShibaSwap are repaid with ShibaSwap Liquidity Pool (SSLP) tokens. These token holders can redeem BONE tokens for free.
2. Woof
This is another functionality of ShibaSwap, which permits users to earn rewards on the DEX. This DEX is known as Woof. This feature essentially functions as a yield farm tool, enabling users to swap SSLP tokens for BONE incentives. Note: Only 33% of the reward can be claimed immediately and the remaining will be locked for six months.
3. Bury
This function allows users to stake their tokens into the DEX’s Bury function and earn high interest rates. Depending on which token the user has staked, they will receive tBONE, xLEASH, or xSHIB. Here also only 33% of the rewards are allowed to be claimed, and the remaining are locked up.
4. Burn portal
This function is similar to BNB’s burning mechanism. This will help in removing the SHIB token permanently by ‘burning’ it.
Final take
ShibaSwap works intending to make SHIB more than a meme coin. It has only been a year since its launch however, it has shown great improvement when compared to other DEXs. The community has been continuously working to support the Shiba Inu ecosystem. The general cleanliness of the project is ensured by ShibaSwap DEX. It’s possible that ShibaSwap may lead the way in creating the upcoming DeFi systems.
Also Read: Top Tips For Backing Up Your Crypto Wallet Private Keys
FAQs
A. ShibaSwap has a security score of 93 out of 100 according to the leading smart contract auditing firm. The security audit has found 24 issues and 97% of the issues were addressed by ShibaSwap’s developers.
A. In general, ShibaSwap is regarded as a safe and legal DEX, however any platform has some risk.
A. ShibaSwap is used for trading and provides liquidity to several cryptocurrencies that include meme tokens such as Shiba Inu and its related tokens.