How it Works and How to Use Shibaswap? Here's the Explanation!
Shiba Inu or SHIB is a token that has been very viral since it was created in 2020. The meme coin made by the anonymous Ryoshi group even holds the title “Doge killer” because of its surprising performance. He was also endorsed by well-known figures such as Tesla CEO, Elon Musk and ETH developer, Vitalik Buterin.
SHIB's popularity peaked at the end of 2021. At that time, the price of this token skyrocketed many times. It was noted that the market cap managed to increase to 41 million US dollars. Amazing, right?
For this reason, in this article we will discuss the DEX product. We will review the definition, features, how it works, and how to use it.
Get to know Shibaswap
ShibaSwap is a decentralized crypto exchange (DEX) from Shiba Inu launched on the Ethereum network. This DEX allows its users to transact crypto without third party intermediaries. As a decentralized crypto exchange, this platform is also more private than CEX or Centralized Exchanges such as Binance, KuCoin, and Coinbase.
To this day, the Shiba Inu DEX has come with various functions. Users can do staking, farming, and even buy NFT or Non-Fungible Token Shibosis.
In terms of its own history, this DEX was first launched on July 6 2021. Apart from SHIB, the coins that are also used in the exchange are BONE and Doge Killer or LEASH.
The ecosystem of this platform is supported by 3 coins as described above. But to make it clearer, we will detail it again as follows.
1. Shiba Inu or SHIB
SHIB is the native token or main token on ShibaSwap. Until today, there are approximately 589.36 trillion SHIB which are included in the range of a fairly large market cap. Initially, SHIB numbered 1 quadrillion, but in May 2021 Vitalik Buterin burned it, reducing 40% of its total supply.
2. Doge Killer or LEASH
The second token used on this platform is LEASH or Doge Killer. LEASH was released in April 2021 and currently has a market cap value of 30 million US dollars. This coin can be staked but the reward given is BONE.
BONE is a token on ERC-20 which is also available on DEX Shiba Inu. Released in July 2021, those with BONE can play a role in the DAO or Doggy autonomous organization. The more BONE one has, the more votes a user gives will have an effect on a decision.
How Does ShibaSwap Work?
In order to understand how this platform works, what must be done first is to understand the role of each token used. SHIB as a native token is indeed the first one released on the DEX. However, the other two tokens actually function as anchors.
BONE. Bone is designed as a governance token. As previously explained, Bone token governance functions in voting for various policies in the Shiba Inu ecosystem via Doggy DAO.
LEASH. LEASH was originally designed as a rebase token whose supply was controlled according to the price of DOGE at a ratio of 1:1000. For example, if the DOGE price is 0.06 dollars, the LEASH supply will be changed so that the price is $ 60. Currently, LEASH is no longer governed by this mechanism. LEASH now serves as the primary store of value for DEX SHIB investors. The supply was only 107,647.
What are the features of ShibaSwap?
This DEX works by offering the following functions:
Dig functions as a staking feature for the liquidity pool on the DEX. With Dig, users can store their asset pairs. The liquidity provider will provide compensation in the form of SSLP. The SSLP amount represents the amount of their liquidity share in the pool. Users can later exchange it for BONE for free.
The second function of this DEX is Woof. Woof allows users to earn rewards which are also called Woof. Users can later get BONE rewards by swapping SSLP tokens. It's just that, of all the rewards obtained, only 33% can be claimed. The remaining 67% will be locked for 6 months.
Bury is ShibaSwap's third feature. This feature allows users to stake LEASH, SHIB, or BONE with high interest rates. Users will later get xLEASH, xSHIB, and xBONE. However, only 33% of the rewards can be claimed as with Woof. The rest will be locked.
4. Burn Portals
The fourth function of this DEX is Burn Portal. In the Burn Portal feature, SHIB coins can be burned with a mechanism similar to BNB coins. The takeover of the burn SHIB function itself will occur around the end of 2022. At that time, various media reported that the Burn Portal SHIB was no longer under Ryoshi Vision.
Doggy DAO is an independent organization of the Shiba Inu community. Doggy DAO aims to increase the development of the SHIB token. With this feature, members can participate in various voting on the Shiba Inu DEX.
The NFT feature allows users to trade Shiboshis. Shiboshis itself is an NFT SHIB collection in which there are 10 thousand Shina Inu cartoons similar to CryptoPUNK. The value of each NFT is different because each has different qualities. The high price of Shiboshis is usually influenced by their quality and rarity.
SWAP allows users to trade coins or tokens they want. The trick is to change the base token to the desired token. When doing a swap, there are a number of things that must be considered, such as the minimum amount received (minimum received), price impact, and liquidity provider fees.
Is ShibaSwap Safe?
As a decentralized exchange, this platform has regulations that are not that different from CEX in general. Based on its own safety score, the Shiba Inu DEX managed to get a good score. An assessment conducted by CertiK, for example, shows that this DEX manages to be in the top ranks among the safest decentralized exchanges.
However, this was not without struggle. In July 2021, the platform received a very bad review from DeFi Safety. The safety score is only 3%. In fact, to be called safe, DeFi Safety requires a security level of at least 70%.
Fortunately, various improvements continue to be made to this day. The latest report in January 2023 shows that this platform can beat 1Inch and PancakeSwap. Based on CertiK's findings, the DEX won second place in the Skynet Trust Score category. He only lost to Polygon or Matic.
How to use ShibaSwap?
In order to use this DEX, you need to first register with a compatible crypto wallet. Until now there are at least 3 crypto wallets that are compatible with the Shiba Inu platform. These three are:
If you already have one of the three wallets, you only need to connect it with the Shiba Inu DEX. Next, you can already explore the available ecosystem while taking advantage of its various features.
However, to make it clearer, here is an example of using ShibaSwap with a Metamask wallet.
Make sure you have Metamask first.
Save your assets to Metamask and change them to SHIB, BONE or LEASH.
Enter the platform address (https://shibaswap.com).
Select connect wallet at the top right.
Choose your Metamask wallet.
Conclusion: Is the Future of ShibaSwap Good?
This Shiba Inu DEX was first released in July 2021. In general, it offers good security based on the value provided by CertiK. The way it works itself is supported by 3 tokens, namely SHIB, LEASH, and BONE.
The features provided range from Dig, Woof, to Burn Portal. NFT purchases are also available for various Shibosis. To be able to use it, users only need to connect with 3 compatible wallets, namely Coinbase, Metamask, and WalletConnect.
Is the future of ShibaSwap good? In general, yes. Based on the CNBC report, this platform has recorded transactions worth 3 million US dollars with 20 million US dollars still locked. This figure is clearly very large for a platform that is only 1.5 years old.