ShibaSwap is the native decentralized exchange (DEX) of the shiba inu coin project; a popular meme coin and leading competitor of dogecoin that has risen to fame over the last 18 months. DEXs operate differently from centralized platforms such as Binance and Kraken by allowing users to swap tokens without the need for an intermediary or counterparty.
Launched in July 2021, the ShibaSwap exchange provides many of the same functions you would find on Uniswap and other decentralized exchanges, such as token swapping and liquidity pools, with the addition of other features such as staking, governance and a “Shiboshis” non-fungible token (NFT) marketplace.
Fueling this platform is the project’s main token, shiba inu coin (SHIB), and two other tokens built using Ethereum’s ERC-20 blueprint, bone shibaSwap (BONE) and doge killer (LEASH).
What is bone shibaSwap (BONE) and doge killer (LEASH)?
- Bone shibaSwap (ticker: BONE): BONE is designed to function as the platform’s governance token, with a total supply of 250 million coins. That means holders of BONE tokens are able to propose and vote on changes to the Shiba protocol via its “Doggy DAO.” It’s also minted and rewarded to users who provide liquidity on the platform.
- Doge killer (ticker: LEASH): This was originally launched as a rebase token (also known as an elastic token), a type of token similar to an algorithmic stablecoin where the supply automatically increases and decreases via a computer algorithm to keep its price pegged to another asset. In this case, LEASH’s supply was adjusted to track the price of DOGE at a rate of 1/1,000.
For example, if the price of dogecoin was $0.05, the supply of doge killer would change (mint new tokens or destroy coins in circulation) to adjust the price of LEASH to $50.
LEASH tokens have since been “unleashed,” and now no longer track the price of DOGE. With a scarce supply of just 107,647 tokens, LEASH has instead become the main store of value coin for the project’s investors.
How ShibaSwap works
On the ShibaSwap homepage, there are six functions available that incorporate the ecosystem’s three native coins, SHIB, LEASH and BONE.
- Dig: Digging is the liquidity pool function on the ShibaSwap platform. Here, users can deposit crypto assets in pairs to existing liquidity pools on the platform or create their own. As a reward, liquidity providers receive ShibaSwap liquidity pool tokens (SSLP). Those tokens represent their share of liquidity in the pool and entitle holders to receive free bone tokens upon redemption.
- Woof: “Woofing” is the function for redeeming BONE rewards by cashing out SSLP tokens.
- Bury: This refers to where users can stake their SHIB, LEASH and BONE in order to generate high-interest yields paid in BONE tokens. At press time, the rates were 171%, 266% and 814%, respectively. Once staked, users receive a token that represents their staked amount in xSHIB, xLEASH or xBONE.
Thirty-three percent of BONE rewards from staking are available immediately, while the remaining 66% are locked up for six months.
- Swap: This is the exchange feature of the ShibaSwap platform where users can swap between multiple assets.
- Bonefolio: This is an analytics dashboard where users can explore current interest rates and track their yield returns.
- NFTs: Here, users can trade 10,000 unique non-fungible tokens called “Shiboshis” – pixelated Shiba Inu dog cartoons similar to CryptoPunks with different traits, some rarer than others.
How to get started with ShibaSwap
In order to start using the ShibaSwap platform, users will need to set up one of three compatible crypto wallet services:
- Metamask
- WalletConnect
- Coinbase Wallet
Simply head over to the official landing pages, click either “Get Started” or “Download” and follow the steps until you’ve created your own wallet.
There are two things you’ll need to do once your wallet is set up. First, you’ll need to make a copy of the secret phrase, also known as a seed phrase or recovery phrase. It’s important not to create a digital copy of this phrase, such as taking a screenshot or sending the phrase to yourself in an email. This makes it accessible to hackers should your device become compromised. Instead, it’s always recommended you write down the phrase on paper.
For maximum security, write the same phrase down on multiple pieces of paper and store each copy in a different, safe location.
Secondly, you’ll need to fund the wallet with an amount of ether to cover transaction fees and to convert into SHIB, BONE or LEASH tokens if you want to begin staking or providing liquidity, as mentioned above.
Read more: How to Buy Shiba Inu Coin
Once you’ve funded your wallet, simply connect your wallet by clicking the “Connect” icon in the top right corner of the official website and select the appropriate wallet service. This will link your wallet to the platform and allow you to interact with ShibaSwap’s services.
Is the ShibaSwap exchange safe?
According to blockchain security ranking service CertiK, ShibaSwap has a current safety score of 93/100 and resolved 97% of the 34 issues raised during the platform’s extensive audit. This puts ShibaSwap above the likes of decentralized finance (DeFi) heavyweights Aave and Polygon, which both scored 92/100.
In addition to this, 96% of CertiK users voted they felt ShibaSwap was a secure service. However, this metric should not be relied upon alone when assessing a platform’s safety.
Whenever investing in DeFi platforms, it’s always advisable to carry out your own rigorous due diligence and educate yourself on the associated risks.
