Since Dogecoin made its debut in 2013 and garnered popularity among cryptocurrency fans and investors by generating substantial gains for them, similar meme coin initiatives have developed to replicate DOGE’s success. The Shiba Inu (SHIB) token, a cryptocurrency project with a canine motif, at least followed in Dogecoin’s footsteps and helped many of its holders become crypto millionaires in 2021.
Shiba Inu, despite its popularity, has some similarities to Dogecoin because of ShibaSwap, a decentralized trading environment built around the Shiba Inu coin. But what is ShibaSwap precisely, and how does it operate?
This article will explain what ShibaSwap is, how it functions, and everything you are looking forward to knowing.
A decentralized cryptocurrency exchange (DEX) called ShibaSwap sprang out of the Shiba Inu community. ShibaSwap enables users to trade cryptocurrencies without the assistance of a middleman or third party because it is a decentralized exchange. This indicates that all transactions made on ShibaSwap are peer-to-peer transactions. Additionally, ShibaSwap provides a more private and safe environment than centralized exchanges for you to conduct your digital asset transaction (CEXs).
Many of the features offered by other contemporary decentralized exchanges, such as PancakeSwap and Uniswap, are also available on ShibaSwap, including governance, liquidity pools, non-custodial digital currency swaps, a market for non-fungible tokens (NFTs), staking, and yield farming.
The Ethereum network serves as the foundation for ShibaSwap, which became live on July 6, 2021. The Shiba Inu currency that corresponds to the ticker (SHIB) is used by the ShibaSwap decentralized exchange, together with the Bone ShibaSwap (BONE) and Doge Killer secondary tokens (LEASH).
ShibaSwap functions by providing a variety of features that incorporate its three tokens. Dig, Woof, Bury, and Swap are the four primary avenues via which users may gain rewards in the ShibaSwap ecosystem.
ShibaSwap’s liquidity pool mechanism is called Dig. Users can add asset pairs to the ShibaSwap liquidity pools by utilizing the Dig function. This ensures that the DEX has enough liquidity to process transactions at all times. ShibaSwap Liquidity Pool (SSLP) tokens are used to pay liquidity providers on the exchange. Holders of SSLP tokens can then freely redeem BONE tokens whenever they desire.
Users may earn prizes on the Woof DEX by using ShibaSwap’s second feature, Woof. Users may trade their BONE rewards for SSLP tokens using the Woof feature, which is essentially a yield farm pool. Please be aware that you may only instantly claim 33% of any BONE awards you exchange for SSLP tokens, with the remaining 67% being frozen for six months.
The DEX’s third function, Bury, enables users to stake their BONE, LEASH, or SHIB tokens to gain high-interest rates. You will get tBONE, xLEASH, or xSHIB, depending on the type of token you stake. In a manner similar to Woof, only 33% of the prizes are redeemable; the remainder is locked away.
The Burn Portal, which is comparable to BNB’s burning process, is ShibaSwap’s fourth feature. By ‘burning’ the SHIB token, the recently implemented Burn Portal enables ShibaSwap to permanently delete it.
ShibaSwap provides additional features besides the four primary DEX functionality, including Swap, Doggy DAO, NFT, and Bonefolio. Users can swap or trade one token for another using the swapping mechanism. Users may also trade a single item for other assets according to their worth. The governance structure that oversees the ShibaSwap environment is Doggy DAO, as was already explained. Voting on critical problems gives users a share in the Woof liquidity pool.
ShibaSwap has its own NFTs, referred to as Shiboshis, which are a component of the Shiboshi Game, a video game developed by ShibaSwap.
The Shiboshis vary in nature, price, and rarity; their owners can also alter their appearance. Lastly, Bonefolio is the name of ShibaSwap’s analytics page. The website offers historical ROI information, staking information, trading information, and transaction costs. The Bonefolio feature allows users to keep track of their yield rewards.
Three tokens are used by the ShibaSwap exchange to support it in various ecosystem functions. ShibaSwap is able to build a safe, lucrative, and fluid environment in this way.
Shiba Inu is the ecosystem’s native token, as was already explained. It is the center of ShibaSwap, to put it another way. It is a well-known meme coin in the cryptocurrency world and an ERC-20 token.
SHIB is now the 15th largest cryptocurrency by market size and consistently appears in the top five list of meme cryptocurrencies, just behind Dogecoin. It has a circulating supply of around $549 trillion. Initially, SHIB was permitted to issue about one quadrillion tokens. However, Vitalik Buterin, the co-founder of Ethereum, burnt 40% of the coins in May 2021. Ryoshi had given the money to Buterin for unknown reasons, and he had received them in his cold wallet.
In addition to being an ERC-20 token, Bone (BONE) serves as the governance token for the DEX, making it an important component of ShibaSwap. This indicates that the Shiba Inu Doggy decentralized autonomous organization allows BONE holders to voice their opinions and suggest modifications to the ShibaSwap system (DAO).
In short, your vote will count more on future ShibaSwap decisions the more BONE tokens you possess. The stackable token can also reward liquidity providers on the DEX.
The cryptocurrency had a 230 million token maximum supply when it was first released in July 2021. BONE now has a fully diluted market worth approximately $170 million and a circulation supply of about 160 million shares. Additionally, a portion of each new BONE is transferred to a developer wallet to aid in funding ShibaSwap’s ongoing development.
Another ERC-20 coin, like BONE, is called LEASH. The token was introduced in April 2021 with the intention of “taming DOGE,” thus the name. It was designed as a rebase token that, linked in a 1:1000 ratio to DOGE values, would ‘tame DOGE.’ Similar to stablecoins, rebase tokens include an algorithm that automatically changes their quantity while maintaining a fixed price based on the underlying asset. Price rebasing for LEASH was placed every day at 6:30 UTC.
However, LEASH’s price was unlinked from DOGE and launched as a scarce ERC-20 token with a limited supply of 107,647. The token’s market value is around $31 million, and it claimed the current supply is 107,647. One LEASH coin might cost as much as $250 because of its rarity. De-pegging from DOGE also means that the token may be staked and its price is determined by supply and demand. Users that invest LEASH instead receive BONE tokens, in contrast to other tokens where you stake it and gain the same token.
ShibaSwap is a decentralized exchange, which means it is not governed by the same laws as centralized exchanges, making it potentially safer than conventional trading platforms since no one company is holding your funds. The assessment of the exchange’s code further suggests that it may be a secure trading platform.
According to a security score produced by CertiK, a blockchain-based security assessment business, ShibaSwap has a security score of 92/100. The DEX platform has also addressed 34 problems that were brought up during its assessment. ShibaSwap is able to claim the top spot among decentralized exchanges since this equates to 97% of the concerns raised.
ShibaSwap appears to prosper, but whether you decide to utilize the site to trade is totally up to you. Purchasing any of the tokens offered for sale inside the ShibaSwap ecosystem is the same. Before connecting to a dApp and, even more so, before pressing the buy button on a coin, always do your research.