Ever since Dogecoin grabbed the attention of investors and mainstream crypto enthusiasts around the world in 2013, similar projects have started popping up left and right, trying to replicate the success of DOGE. In the sea of dog-themed cryptocurrencies inspired by Dogecoin, the Shiba Inu token (SHIB) has emerged as the standard-bearer.
But despite having a similar mascot, Shiba Inu bears little resemblance to its predecessor. What began as a lighthearted blockchain trial run has now turned into a serious project bent on establishing a multifaceted ecosystem. People behind Shiba Inu are now working on ShibaSwap – a user-friendly platform for trading cryptocurrencies in a decentralized manner.
Let's find out more about the ShibaSwap platform, its native tokens, and whether the platform is worth your attention.
So what is ShibaSwap? ShibaSwap is a native decentralized exchange (DEX) of the Shiba Inu coin. The Shiba Inu team has been working on this project since early 2021, highlighting Shiba Inu's ambitions to become more than just a meme altcoin.
ShibaSwap is designed to be as easy to use as possible, while still offering a wide range of features that would satisfy even the most demanding traders. Just like PancakeSwap and Uniswap, ShibaSwap operates without a single or central authority.
However, ShibaSwap may have a greater profit potential than PancakeSwap and UniSwap. After all, it not only has one, but four reward features! These functions allow ShibaSwap users to earn token rewards which can provide a good stream of passive income.
ShibaSwap isn't just powered by a single coin. In addition to Shiba Inu (SHIB), two other tokens power the ShibaSwap ecosystem — Doge Killer (LEASH) and Bone (BONE). These three tokens work in synergy to create a liquid, secure and profitable ecosystem.
Let's take a look at SHIB, LEASH and BONE in more detail.
SHIB is the heart of the exchange. It was created in August 2020 by a founder using the name Ryoshi. The mascot of SHIB is a Shiba Inu, the same breed as Dogecoin's mascot. SHIB runs on the Ethereum blockchain, offering maximum safety and functionality to its users.
Despite its price, the value of Shiba Inu coins is hovering around $26 billion, due to the approximately 549 billion coins in circulation. In the beginning, SHIB had nearly one quadrillion authorized coins. However, around 40% of these coins were burned in May 2021 by Ethereum co-founder Vitalik Buterin.
BONE serves as the governance token for the entire ShibaSwap ecosystem. It allows the lodgers to propose and have a say in changes to the ShibaSwap protocol through the Shiba Inu Doggy DAO. In theory, the more BONE coins a holder has, the more weight their vote has on future decisions.
As of this writing (16/06/2022), the BONE trading price is roughly $0.36 and the token has an outstanding supply of 6.98 million coins, with a maximum token supply of 250 million coins.
Doge Killer (LEASH) is the incentivized token in the ecosystem. Originally, LEASH was planned as a rebase token (or “elastic token”) of DOGE. Rebase tokens are similar to stablecoins. Their supply is automatically modified through an algorithm that keeps their price pegged to other assets. However, LEASH has since been de-pegged from DOGE, and has been launched as an ERC20 token with a fixed supply of coins.
Unlike BONE, LEASH is pretty rare, with a total supply of just 107,647 tokens. Because of this scarcity, each LEASH coin is currently valued at $302.13 per coin. That's how the law of supply and demand affects coins — the lower the supply, the higher the price.
There are currently four ways to earn rewards in the ShibaSwap ecosystem: Dig, Woof, Bury, and Burn Portal. Here's how each of them works.
The first way to earn rewards in ShibaSwap is through its liquidity pool, called Dig. The way it works is pretty simple: Each user who locks their SHIBA tokens in the Dig pool receives free BONE tokens. The percentage of rewards depends on how many SHIB tokens you’ve got locked in the pool.
Liquidity providers are compensated with ShibaSwap Liquidity Pool tokens (SSLP). These tokens are a representation of the users' shares in the liquidity pool, which they can redeem for BONE tokens whenever they want.
The second way to earn rewards in ShibaSwap is called Woof. It’s actually a yield farm pool that allows users to exchange their BONE rewards with each other by swapping their SSLP tokens. You’ll be able to claim 33% of the rewards immediately, but the remaining 67% will be locked for the next six months.
A user can stake their SHIB, LEASH and/or BONE tokens in the Bury function to earn high-interest rates. Users will receive xSHIB, xLEASH or tBONE, according to the type of token they stake. These tokens are representative of the tokens that the users have staked. Once the user stakes a certain amount of tokens, 33% of the returns can be claimed weekly, while the remaining sum will be locked for six months.
As you probably know, "burning" tokens means permanently removing them from circulation by sending them to a wallet they can never be retrieved from. ShibaSwap has introduced a new burning mechanism that rewards their community members who burn the protocol's native SHIB token. It allows users to dispatch SHIB tokens to a dead wallet address, and in exchange, ShibaSwap sends RYOSHI tokens to them.