Since Dogecoin made its debut in 2013 and gained recognition by generating significant profits to both crypto enthusiasts and investors, similar meme coin projects emerged, trying to clone the success of DOGE. One such dog-themed crypto project that has at least followed in Dogecoin’s shoes is the Shiba Inu (SHIB) token, which made many holders crypto millionaires in 2021.
Despite its success, Shiba Inu bears a faint resemblance to Dogecoin due to ShibaSwap – a decentralized trading ecosystem developed from Shiba Inu Coin. But what exactly is shibaswap and how does it work?
In this guide, we’ll take a look at what ShibaSwap is, how it works, and what you can expect to find on it.
What is Shiba Inu?
Shiba Inu is an Ethereum-based dog-themed meme coin with the Shiba Inu, a Japanese breed of hunting dog named after it, as its mascot and SHIB as its native token.
SHIB is also known as the ‘dogecoin killer’ and an alternative to dogecoin for meme coin enthusiasts. In very simple terms, Shibu Inu is a cryptocurrency that is associated with a meme – in this case, the Shiba Inu dog – and is usually released as an inside joke rather than an actual digital currency with some utility attached. it occurs.
The Shiba Inu was developed in August 2020 by an anonymous group or individual under the pseudonym Ryoshi. It quickly gained momentum and value, saw a stream of investors attracted by the coin’s attractiveness, received tweets from the likes of Elon Musk and Vitalik Buterin, which pushed it into the mainstream media and made it a sought-after Given – After investment by investors. At the end of October 2021, the Shiba Inu had more than tenfold in value, reaching a market capitalization of $41 billion.
While the current crypto winter has affected meme cryptocurrencies like the Shiba Inu, some believe the Dogecoin clone could still prove to be a good one. long term crypto investment,
What is Shibaswap?
ShibaSwap is a decentralized crypto exchange (DEX) developed from the Shiba Inu ecosystem.
As a decentralized exchange, ShibaSwap makes it possible for users to trade cryptocurrencies without the need for third parties or any intermediaries. This means that all transactions done on Shibaswap are done on a peer-to-peer basis. Furthermore, with Shibaswap, you enjoy an environment that is more private and secure for carrying out your digital asset transactions than when using centralized exchanges (CEX).
ShibaSwap offers many of the functionalities provided by other modern decentralized exchanges such as PancakeSwap and Uniswap, including but not limited to governance, liquidity pools, non-custodial digital currency swaps, a non-fungible token (NFT) marketplace, staking and are not limited. produce farming.
shibaswap is built on top of it Ethereum Network and was launched on July 6, 2021. The Shibaswap decentralized exchange uses the Shiba Inu coin that goes with the ticker (SHIB), as well as two secondary tokens known as BON Shibaswap (BON) and Doge Killer (LEASH), but more on these tokens later. What do you do.
How does Shibaswap work?
ShibaSwap works by offering a range of functionalities that comprise its three tokens. Users can earn rewards through four main channels in the ShibaSwap ecosystem: Digg, Woof, Bury and Swap.
dig
The Dig function is Shibaswap’s Liquidity Pool function. Users using the Digg function are able to deposit asset pairs into existing liquidity pools on ShibaSwap. This way, the DEX always has enough liquidity to conduct transactions. Liquidity providers on Shibaswap are compensated with Shibaswap Liquidity Pool (SSLP) tokens. SSLP token holders are then able to redeem BONE tokens for free whenever they wish.
Wow
ShibaSwap, the second functionality on Woof, allows users to earn rewards on a DEX called WOOF. The Woof function is more or less a yield farm pool that provides users with the ability to exchange their BON rewards by swapping their SSLP tokens. Please note that whatever BONE rewards you swap with your SSLP tokens, you will only be able to claim 33% of the rewards immediately, while the other 67% will be locked for a period of six months.
bury
Bari, which is the third function, allows users to stake their BON, Leash, or SHIB tokens in the DEX’s Bari function to earn higher interest rates. Depending on the type of token you stake, you will receive tBONE, xLEASH, or xSHIB. And similar to Woof, only 33% of the prizes can be claimed, with the rest locked away.
burn portal
The fourth functionality of ShibaSwap is its burn portal which is similar to the burning mechanism of BNB. The newly introduced burn portal helps Shibaswap to permanently delete SHIB tokens by ‘burning’ them.
ShibaSwap’s burning process requires SHIB holders to send tokens to dead wallets. Users who burn their SHIB tokens are rewarded with RYOSHI tokens.
In addition to the four main functionalities of DEX, ShibaSwap also has other functions, such as Swap, Doggy DAO, NFT, and Bonefolio. The swapping mechanism allows users to swap or exchange tokens for other tokens. Furthermore, users can also exchange the same asset for multiple other assets depending on their value. Doggy DAO, as mentioned earlier, is the governance system that drives the Shibaswap ecosystem. Users can vote on various issues and receive stakes in the Woof Liquidity Pool.
When it comes to the NFT function, ShibaSwap has its own NFTs known as Shiboshis, which are part of ShibaSwap’s gaming project dubbed the Shiboshi Game.
In addition to varying in nature, value, and rarity, shiboshis can also be customized by their holders. Lastly, ShibaSwap’s analytics page is known as Bonfolio. The page includes return on investment (ROI) information, staking data, trading data and historical data on transaction fees. Users can also use the Bonfolio function to keep track of their Yield Rewards.
Shibaswap Ecosystem Token
ShibaSwap exchange has three tokens which help it to play different roles in the ecosystem. In this way, ShibaSwap has been able to create an ecosystem that is liquid, profitable and secure.
Shiba Inu (SHIB)
As mentioned, Shiba Inu is the native token of the Shibaswap ecosystem. In other words, it is the heart of Shibaswap. It is a popular meme coin in the crypto space and is also an ERC-20 token.
SHIB currently has a circulating supply of over $549 trillion and always ranks in the top five list of meme cryptocurrencies, right behind Dogecoin, and is currently the 15th largest cryptocurrency by market cap.
Initially, SHIB had approximately 1 quadrillion authorized tokens. However, in May 2021, 40% of the coins were burned by Ethereum co-founder Vitalik Buterin. Buterin had received the coins in his cold wallet, which had been sent to him by Ryoshi for reasons that were not known.
bone (bone)
BONE, apart from being an ERC-20 token, is also a key part of ShibaSwap as it serves as the governance token of the DEX. This means that BON holders are able to have a say and propose changes to the Shibaswap protocol via the Shiba Inu Doggy Decentralized Autonomous Organization (DAO).
In short, the more BON tokens you have, the more weight your vote will have on future Shibaswap decisions. The token is also used to reward liquidity providers on the DEX and can be staked.
The token was launched in July 2021 with a maximum supply of 230 million tokens. As of this writing, BONE has a circulating supply of over 160 million and a fully diluted market cap of over $170 million. In addition, a portion of any newly created BON is distributed to the Developer Wallet to help fund the future development of Shibaswap.
Doge Killer (strap)
LEASH is also another ERC-20 token similar to BONE. The token was launched in April 2021 and was designed to ‘tame the Doge’, thus the name. It was created as a rebase token that would ‘tame DOGE’ by fixing a ratio of 1:1000 to DOGE prices. Rebase tokens are similar to stablecoins, and their supply is automatically changed through an algorithm that pegs their price to the corresponding asset. The price rebasing of LEASH was done daily at 6:30 UTC.
However, LEASH was priced separately from DOGE and was established as a rare ERC-20 token with a total supply of 107,647. The current supply of the token is reported to be 107,647, and it has a market capitalization of over $31 million. Due to its scarcity, a single Leash coin is worth over $250. The de-pegging of DOGE also means that the price of the token is decided according to the supply and demand mechanism, and can be staking. Unlike most tokens where you stake it and earn the same token, users who stake LEASH earn BONE tokens in return.
Is Shibaswap secure?
As a decentralized exchange, ShibaSwap is not subject to the same regulations centralized exchange Which can make it more secure than traditional trading platforms as there is no single entity holding your funds. Furthermore, the exchange’s code has been audited, suggesting that it could be a secure platform for trading.
there is one in sheebaswap security score 92/100, according to a security score by CertiK, a blockchain-based security audit company. In addition, the DEX platform has resolved 34 issues raised during the audit. This translates to 97% of the issues raised, which helps Shibaswap rank near the top when it comes to decentralized exchanges.
While ShibaSwap is doing well for itself, the decision to use this platform to trade is completely up to you. The same applies to investing in any tokens for sale within the Shibaswap ecosystem. Always do your research before connecting to a dApp and even more so, before clicking the buy button on any cryptocurrency.
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