What is ShibaSwap and How does it work?

Shiba Inu is an Ethereum-based meme coin with a dog motif that is named after the Japanese hunting dog breed of the same name and uses SHIB as its native token.

For supporters of meme coins, SHIB is sometimes referred to as the "Dogecoin killer" and a substitute for Dogecoin. Shibu Inu, to put it simply, is a type of cryptocurrency that is linked to a meme, in this case, the Shiba Inu dog and is often launched as an inside joke rather than real digital money with a purpose.

Unknown individuals or a group working under the alias Ryoshi created Shiba Inu in August 2020. It acquired popularity and value fast, attracting a number of investors attracted by the coin's charming charm. Elon Musk and Vitalik Buterin both tweeted about it, propelling it further into the mainstream and making it a sought-after investment by investors.

ShibaSwap is a decentralized finance (DeFi) platform with a decentralized exchange (DEX) and services for yield farming, liquidity pools, and staking that generate passive income.

ShibaSwap, a popular DEX that was introduced in July 2021, is a fork of SushiSwap, which in turn is a fork of Uniswap, the largest DEX in the world by volume. However, ShibaSwap's primary goal has mostly been to increase the utility of Shiba Inu tokens, unlike its competitors. Let's learn everything you should know about it.

Also read: Shiba Inu Jumps Higher as Bugatti Partnership Came as a Booster

ShibaSwap: What is it?

The Shiba Inu ecosystem served as the foundation for ShibaSwap, a decentralized cryptocurrency exchange (DEX). 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 you with 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), as well as two additional tokens called Bone ShibaSwap (BONE) and Doge Killer (LEASH), are used by the ShibaSwap decentralized exchange. 

ShibaSwap Ecosystem Tokens

Three tokens are used by the ShibaSwap exchange to support it in a variety of ecosystem functions. ShibaSwap is able to build a safe, lucrative, and fluid environment in this way.

Shiba Inu (SHIB)

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 1 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.

Bone (BONE)

In addition to being an ERC-20 token, BONE serves as the governance token for the DEX, which makes it an important component of ShibaSwap. As a result, BONE owners have the ability to influence the ShibaSwap protocol through the decentralized autonomous organization Shiba Inu Doggy (DAO).

To put it simply, your vote will count more on future ShibaSwap choices the more BONE tokens you possess. The stakeable token can also be used to reward liquidity providers on the DEX.

The token's maximum supply of 230 million tokens was announced during its introduction in July 2021. BONE has a fully diluted market cap of around $170 million and a circulating supply of over 160 million. Additionally, a part of each newly created BONE is transferred to the developer wallet to support ShibaSwap's ongoing development.

Doge killer (LEASH)

Another ERC-20 coin, like BONE, is called LEASH. The token, which went public in April 2021, was intended to "tame DOGE." It was designed as a rebase token that, by being tied to DOGE pricing in a ratio of 1:1000, would 'tame' DOGE.

Similar to stablecoins, rebase tokens have automatic supply changes made by an algorithm that keeps the price tied to the underlying asset. Price rebasing for LEASH was placed every day at 6:30 UTC.

ShibaSwap: How Does It Function?

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.

Dig

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.

Woof

Users may earn incentives on the Woof DEX thanks to Woof. The Woof feature is essentially a yield farm pool that allows users to trade their SSLP tokens for BONE prizes. Please be aware that only 33% of the BONE awards you exchange for SSLP tokens will be available to you right once, with the other 67% being locked for a period of six months.

Bury

Users may stake their BONE, LEASH, or SHIB tokens into DEX's Bury function in order to earn high-interest rates. Bury is the third function. You will receive tBONE, xLEASH, or xSHIB depending on the type of token you staked. Similar to Woof, only 33% of the awards are redeemable, with the remaining rewards being locked away.

Burn Portal

The Burn Portal, which is comparable to BNB's burning process, is ShibaSwap's fourth feature. By 'burning' the SHIB token, the newly created Burn Portal enables ShibaSwap to permanently delete it.

SHIB holders must transmit tokens to a dead wallet as part of the burning procedure. Users receive RYOSHI tokens as compensation for burning their SHIB tokens.

Related: Shiba Inu Price Predictions (2023-2030)

ShibaSwap provides additional features in addition to the four primary DEX functionality, including Swap, Doggy DAO, NFT, and Bonefolio. Users are able to swap or trade one token for another using the swapping mechanism. Users may also trade a single item for a variety of other assets according to their worth.

Doggy DAO is the governance framework that powers the ShibaSwap ecosystem, as was already explained. Users may cast ballots on a range of topics and earn shares 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, and their owners can also alter their appearance. Lastly, Bonefolio is the name of ShibaSwap's analytics page. The website offers historical information on ROI information, staking information, trading information, and transaction costs. The Bonefolio feature allows users to keep track of their yield rewards.

How safe is ShibaSwap?

ShibaSwap is a decentralized exchange, which means it is not governed by the same laws as centralized exchanges are, making it potentially safer than conventional trading platforms since there is no one company 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 be prospering, but whether or not 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 own research.

ShibaSwap FAQs

What is ShibaSwap used for?

Users can directly exchange supported ERC-20 tokens with one another via ShibaSwap. Shiba Inu ecosystem currencies are the most liquid tokens on the DEX, according to statistics, with BONE and LEASH having the largest trading volumes and order book depths.

Is ShibaSwap safe to use?

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.

When ShibaSwap launch?

ShibaSwap was introduced on July 6, 2021, with the goal of expanding the use cases for SHIB so that it becomes more than just a meme coin.