ShibaSwap, a decentralized finance (DeFi) platform, offers various services such as a decentralized exchange (DEX), staking, liquidity pools, and yield farming. It was launched in July 2021 as a fork of SushiSwap, which itself is a fork of Uniswap, the leading DEX in terms of volume. However, ShibaSwap’s main focus is on enhancing the utility of the Shiba Inu (SHIB) tokens.
ShibaSwap utilizes three primary tokens: SHIB, Doge Killer (LEASH), and Bone (BONE). SHIB is a memecoin inspired by Dogecoin and was created in August 2020 by the pseudonymous “Ryoshi.” During its initial coin offering, one quadrillion SHIB was distributed, with half of it allocated to Ethereum co-founder Vitalik Buterin. Buterin donated 50 trillion SHIB to an Indian COVID-19 relief fund and sent the remaining tokens to a dead wallet. The remaining 500 trillion SHIB were locked in Uniswap, and the private keys were discarded.
LEASH was introduced as part of SHIB’s attempt to surpass Dogecoin as the top memecoin by market capitalization. Initially, LEASH had a failed 1:1000 peg to the price of DOGE. It functions as an ERC-20 token with a fixed supply of 107,647 tokens. On the other hand, BONE serves as a governance token within the ShibaSwap ecosystem, enabling users to propose and vote on changes to the protocol through the Shiba Inu Doggy DAO. The maximum supply of BONE is 250 million coins.
ShibaSwap allows users to trade supported ERC-20 tokens directly with each other. The most liquid tokens on the DEX are those within the Shiba Inu ecosystem, with BONE and LEASH having the highest trading volumes and order book depths. Owners of SHIB, LEASH, and BONE can stake or “BURY” their coins into ShibaSwap pools to earn pre-determined annual percentage yields (APY). These yields are paid in the wrapped version of the staked tokens. Staked capital is vested for six months, with users being able to claim one-third of the rewards weekly.
Liquidity providers on ShibaSwap receive trading fee rewards proportional to the liquidity they provide to the coin pairs. These rewards are distributed as Shiba Swap Liquidity Provider (SSLP) tokens, which can be redeemed for BONE tokens. SSLP holders can also deposit these tokens into ShibaSwap’s yield farm pools to earn BONE rewards, similar to the staking mechanism.
In addition to SHIB, LEASH, and BONE, ShibaSwap also supports yield farming pools that provide rewards directly in Ether (ETH), Wrapped Bitcoin (WBTC), Dai (DAI), Tether (USDT), and USD Coin (USDC).
ShibaSwap offers a burn portal where users can voluntarily burn their SHIB tokens by sending them to a dead address. As a reward, users receive Ryoshi Token (RYOSHI), an ERC-20 token specifically created for burn rewards.
Furthermore, ShibaSwap allows users to mint, customize, and trade native non-fungible tokens (NFTs) called “Shiboshis.” These NFTs, featuring the Shiba Inu mascot cartoons, are expected to be part of the Shiboshi Game, a gaming project.
Please note that this article does not provide investment advice or recommendations. It is important for readers to conduct their own research before making any investment or trading decisions.