ShibaSwap: A Comprehensive Guide to the Decentralized Exchange
Ever since 2013 and the appearance of Dogecoin, similar projects have been trying to get some of DOGE’s popularity. While very few have succeeded, one definitely stands out from the rest. Shiba Inu (SHIB) is the best example of how popular a memecoin can get. Despite being launched in August 2020, it even managed to outperform DOGE once. It was brief, but it happened, and if it can happen once — it might happen again.
Shiba Inu has tremendous potential, and it has decided to become more than just a memecoin. Memecoins are just that — meme cryptos with no real use cases, products, or real purpose. Most people just use them as speculation instruments and nothing else. But, Shiba Inu wanted more, and it started working on a complex ecosystem with all kinds of products. One of the first ones is its decentralized exchange, called ShibaSwap. This guide will answer the questions like what is ShibaSwap, how does it work, and what are the benefits of using it.
What Is ShibaSwap?
ShibaSwap is the decentralized cryptocurrency exchange operating in the Shiba Inu ecosystem. The project’s team started developing it back in early 2021. This was their first attempt to make SHIB into something more than just a meme coin. ShibaSwap eventually launched in July 2021 as a fork of SushiSwap. SushiSwap itself is the fork of Uniswap — Ethereum’s largest DEX.
The platform serves as more than just an exchange, however. You can swap tokens on it, but it also offers passive income-generating services, including liquidity pools, staking, and yield farming. Its main purpose, however, has been boosting the utility of Shiba Inu (SHIB). As mentioned, the project is determined to become something more, and this was the first step on that road.
How Does ShibaSwap Work?
ShibaSwap was designed to allow users to trade ERC-20 tokens that end up supported by the DEX. You can swap them freely with one another, but the most liquidity lies with the Shiba Inu coins. This does not only refer to the SHIB token, but also other cryptocurrencies in Shiba Inu ecosystem. Currently, there are three active ones, including SHIB, LEASH, and BONE. It is also worth saying that BONE and LEASH have the highest trading volumes on the DEX.
Apart from working as a regular decentralized exchange, ShibaSwap offers some interesting possibilities. It offers a number of different functions for yield farming that have two purposes. One is to give its native tokens new use cases. Another is to allow users to earn funds by supporting the project and locking up their tokens.
What Makes ShibaSwap Unique?
When it comes to ShibaSwap, the project had packed with quite a few features. Several functions are offered on its homepage. Some of the most interesting ones are Dig, Woof, Bury, Swap, and Bonefolio
Digging is the ShibaSwap liquidity pool function, that lets you deposit cryptos in pairs. You can use the existing pools, or create a brand new one. In return, you receive rewards in the form of SSLP tokens (ShibaSwap Liquidity Pool tokens). They represent your share of liquidity in the pool. When you redeem them, ShibaSwap Liquidity Pool grants you BONE tokens.
Woof is a function that you turn to for that. By bringing your SSLP tokens to it, you get BONE rewards. After that, you can use Bury, which is a function for staking. You can stake BONE, as well as LEASH, and SHIB tokens. However, all high-interest yields are still paid in BONE.
Similarly to the Dig function, Bury will also grant you tokens that represent your stake. For the SHIB token, you receive xSHIB. For LEASH, you get xLEASH, and burying BONE will grant you xBONE.
The Swap function is rather self-explanatory — it is a standard exchange feature that lets you swap tokens. Bonefolio, however, is a more interesting one. It represents an analytics dashboard, where you can explore interest rates, track yield returns, and more.
What Are the Benefits of ShibaSwap?
As you may know, the native Shiba Inu coin, SHIB, has a massive total supply of almost 1 quadrillion tokens. The size of the supply guarantees that its price will always remain only a fraction of a cent. However, this does not benefit the project or its community. So, to deal with the matter, the project decided to burn a sizable portion of the supply.
So far, around 40% has been burned already. However, more will have to end up permanently locked up for the project’s benefit. This is why the DEX has a built-in burn portal. This is a feature that removes tokens from circulation permanently. It does this by sending them to a wallet from which they can never be retrieved by anyone.
At the same time, this is one of the largest benefits of the project. It actually rewards users for using the burning mechanism to dispatch SHIB. This is the most unexpected benefit of ShibaSwap. The others mostly include things that were already mentioned, such as yield farming and quick token swaps.
Tokens in the Shiba Inu Ecosystem
The Shiba Inu ecosystem has multiple tokens, as mentioned. The project intends to have a total of five different tokens eventually. For now, however, there are only three — SHIB, LEASH, and BONE.
Shiba Inu (SHIB)
SHIB is the native cryptocurrency of Shiba Inu and the main token of the ecosystem. It is also the heart of the ShibaSwap exchange. Created by the mysterious Ryoshi, it was launched in August 2020. SHIB is also a direct and largest competitor to Dogecoin. While the price of DOGE has always been higher, SHIB managed to overtake it once in market cap and position. As mentioned earlier, SHIB’s original total supply is nearly 1 quadrillion tokens. However, after burning almost half of it, 549 billion remain in circulation for now.
Doge Killer (LEASH)
Next, we have Doge Killer (LEASH). This is an incentivized token that was originally supposed to be a rebase token. Basically, the project and its founder intended to change its circulating supply in order to maintain value. However, those plans eventually failed, and LEASH became a standalone ERC-20 token. It has a fixed supply of 107,647 tokens, which allowed its value to go beyond $300.
Bone (BONE)
Finally, we have BONE — ShibaSwap’s governance token. Those who hold it can participate in the voting process, and help decide the future by approving or rejecting proposals. BONE is also a reward token for things like staking, as mentioned earlier.
Doggy DAO and Governance on ShibaSwap
One thing that is a part of the ShibaSwap ecosystem that we did not mention so far is Doggy DAO. This is a decentralized autonomous organization (DAO) that watches over the ecosystem development. Basically, this is a community of BONE token holders that decides on which proposal should be implemented.
Doggy DAO launched only a few weeks ago, on December 31, 2022. It established community governance and contributed to the ecosystem’s decentralization. In order to become a member of this team, community members must stake their BONE. In return, they will receive tBONE, which grants them the right to vote on proposals. The more BONE you stake, the more your vote is worth and the greater your impact.
ShibaSwap NFTs
Lastly, ShibaSwap also offers a collection of 10,000 unique NFTs. These are pixelated Shiba Inu NFTs, native to Ethereum’s network. Each is unique, and the entire collection launched on October 14, 2021.
The NFTs are popularly known as SHIBOSHIs. Each features a Shiba Inu puppy with some unique traits. That way, there are no two that are the same. At the moment, they are simply collectibles. However, once Shiba Inu launches its ShibaSwap protocol, it will be able to create a metaverse game. SHIBOSHIs will then join as in-game characters that owners can use. You can purchase them with zero fees on ShibaSwap.
ShibaSwap Explained: Shiba Inu’s Best Tool
ShibaSwap is the decentralized exchange of the Shiba Inu ecosystem. However, it is more than just a simple exchange. Packed with features, this single product grants Shiba Inu and other tokens utilities, offering numerous benefits, features, and functions. The DEX is not the end of what Shiba Inu devs have in store for the project. However, for the time being, it is the most diverse tool in the ecosystem.
FAQs
What Is the Benefit of ShibaSwap?
ShibaSwap offers numerous tools and functions for the Shiba Inu ecosystem’s tokens. You can stake them, swap them, or use them for governance. It is a collection of tools and functions — all in the same place and easy to use.
Is ShibaSwap the Same As Shiba Inu?
No, Shiba Inu doubles as the name of the project and the project’s native cryptocurrency. ShibaSwap, however, is a decentralized exchange of the Shiba Inu ecosystem.
What Can I Do With ShibaSwap?
ShibaSwap primarily emerged to act as a decentralized crypto exchange. As such, it allows you to swap supported tokens. However, it introduced a number of other functions that give SHIB and other tokens utility.
What Is Shiba, and How Does It Work?
ShibaSwap is a decentralized exchange (DEX) that operates in the Shiba Inu ecosystem. Like the rest of the project, it runs on Ethereum’s network. It is also decentralized, and all changes are made through community voting.
