ShibaSwap is a decentralized Ethereum-based exchange that has evolved on the basis of the Shiba Inu Coin project, the main competitor of Dogecoin and a meme coin. Since it’s a DEX, the swapping of tokens is conducted without intermediaries that are typically required on centralized platforms to operate. The Subaswap exchange aims to create a truly decentralized ecosystem together with Doggy DAO. Its goal is to onboard more than 500 trading pairs.
Shibaswap started its work in July 2021. The AMM DeFi platform revolutionizes the investment protocol with an advanced network. The team members of the platform consider that it’s their responsibility to move the industry ahead as they contribute to the future of the decentralized web, therefore, they have created an ecosystem for trading and exchanging of assets and ideas. With the plans to improve the decentralized landscape, the team has created a convenient swapping feature enabling users to convert various assets. In general, the functions available on the platform are similar to those that users can find on other decentralized exchanges such as Uniswap. These are liquidity pools, token swapping, decentralized governance, staking, and an NFT marketplace known as Shiboshis.
The founders of ShibaSwap justify their decision to deploy the platform on Ethereum by their predisposition toward Buterin’s brainchild which features security and a good reputation. These are the conditions that help the exchange to remain decentralized and thrive. The system that developers have designed has unique tokenomics, clean technical implementation, and solid design that contribute to the popularity of the platform.
In a nutshell, the Shibaswap project presents the ecosystem based on three ERC-20 tokens that include SHIB, BONE, and LEASH. The basic project behind the platform is a cryptocurrency Shiba Inu, a meme coin that was released by an anonymous developer known as Ryoshi. He has created the meme asset trying to replicate a popular DogeCoin on the Ethereum network.
As mentioned above, the team headed by Ryoshi has created a DEX with such decentralized tools as AMM trading, liquidity pools, farming, and staking. At this, much attention is paid to the growth of the community. According to the founders, a single perspective is always inferior to the perspective of the community with its joint work that has real power. At the time of writing, the figures on the official website state that the community of the platform has over 585K members, and it continues to grow rapidly.
Users who want to stake tokens on ShibaSwap should “bury” their assets as the process is called on the platform. By burying SHIB, LEASH, and BONE users get xSHIB, xLEASH, and tBONE tokens instead, which represent the share of token stakers in the so-called “puppy pools”. When stakers decide to unstake the assets via the BURY tools, the assets are automatically detected. Thus, stakers get access to 33% of their assets immediately, while the remaining amount stays locked up for 6 months.
The members of the ecosystem who want to provide liquidity (LPs) should “dig” their tokens to get SSLP tokens instead. By digging for the ecosystem, LPs receive Shib-Eth SSLP, Leash-Eth SLP, and Bone-Eth SSLP that enable them to get rewards distributed proportionally as BPB (Bone per Block). BPB depends on the amount allocated to individual pools. As the founders say, there are liquidity pools providing double or triple rewards. The community uses the term “woofing” to denote the process when members of the ecosystem cash out SSLP tokens to redeem BONE rewards.
Out of the three tokens fueling the platform, SHIB is the main token used for trading and storage of assets. LEASH is a utility token used for farming. Initially, it was conceived as a rebase or elastic token functioning as an algorithmic stablecoin pegged to DOGE at a ratio of 1/1000. It means that its supply could either increase or decrease in accordance with algorithmic calculations with the LEASH rate adjusted to the price of DOGE. For instance, with DOGE equaling 0,04 USD, the supply of the LEASH changed accordingly to correspond to the rate. The process of adjustment presupposed either minting new tokens or, on the contrary, destruction of circulating coins. However, LEASH was eventually ‘unleashed’ and it is no longer pegged to the price of DOGE. Since the token has a limited supply of only 107,647 tokens, the cryptocurrency is mainly used as a store of value.
As for BONE, this token is accrued as a reward for the provision of liquidity, staking, and farming on ShibaSwap. The total supply of BONE is 250 million coins. LPs (liquidity providers) get BONE proportionally to their shares in liquidity pools. BONE is also a governance token that allows members to vote and determine the development strategy of the project. The members of the ecosystem, also often referred to as ShibArmy, can make proposals on changes to be introduced to the Doggy DAO, which are later presented for voting. The weight of the vote depends on the amount of BONE held by a user.
ShibaSwap is equipped with numerous innovative features that help members of the ecosystem earn and increase their revenues. The products of ShibaSwap include Bonefolio, an analytics dashboard used by traders to explore current interest rates and track their returns. It is also possible to trade NFTs named Shiboshis on ShibaSwap. The collection includes 10K unique non-fungible tokens presented as pixelated Shiba Inu dog cartoons.
Being fully community-driven, the platform performs amazing work on security trying to protect itself from scammers and leeches, thus defending the reputation of the facility. Certik, a blockchain security ranking service, audited the platform’s code in August, 2021, and declared the safety score of the ShibaSwap platform to be 93/100. The specialists of the service also resolved 97% of the 34 discovered issues. In terms of security, it puts the facility on the same level with famous reputable companies such as Polygon and Aave which have received a 92/100 safety score.