Shibaswap is a decentralized trade that utilizes liquidity pools (LPs) to make markets rather than a common request book. These pools are characterized by shrewd agreements that work with …
ShibaSwap is a decentralized exchange created for the Shiba Inu community. The community gathers around three main coins: SHIB (the foundational currency of the Shiba Inu community), LEASH (the second token incentivised on ShibaSwap), and BONE (ShibaSwap’s governance token). It was launched on July 6th of 2021 in the Ethereum blockchain, almost one year after the release of the Shiba Inu token in August 2020. Initially started as a fork of Sushiswap, it incorporated different elements as flagship coins, a twisted fee model and incentivizing structure. Nowadays it has gained a lot of traction among the SHIB community, where they find it most convenient to trade and earn with the tokens of the decentralized ecosystem.
- Exchange / Swap — allows you to buy or sell any of the ERC-20 tokens supported by the ShibaSwap exchange. Some other exotic pairs are available, and the SHIB ecosystem tokens are very liquid, where both BONE and LEASH have the biggest trading volumes and order book depths, according to Coingecko.
- Staking (also known as BURY): staking pools for the ecosystem’s tokens (SHIB, BONE, LEASH). It allows you to earn token rewards while staking the tokens. Each pool has different time-locking intervals as well as APYs. Rewards are in the 3 figures percentages and are paid in BONE. The rewards are distributed weekly and one third of the staked amount can be claimed at that time while the rest of the staked quantity is vested for six months.
- Liquidity Pools (also known as DIG): providing liquidity to a coin pair allows to earn trading fee rewards (0.3% per each trade) proportionally to the amount provided as liquidity in that coin pair. After adding liquidity to a pool you receive Shiba Swap Liquidity Provider tokens (SSLP tokens). From that 0.3% liquidity providing fee per trade, 0.1% is destined to different pools as liquidity: some go to BONE-ETH or LEASH-ETH as liquidity while others are destined to SHIB/BONE/LEASH staking pools.
- Yield Farms (also known as WOOF Pools): the liquidity providing tokens (SSLP) can be staked in yield farm pools to earn rewards in BONE tokens. The reward mechanics are slightly similar to staking pools, one third of the rewards can be redeemed instantly while the rest are time-locked for six months. According to ShibaSwap documentation, some yield farming pools can earn rewards directly in ETH, WBTC, DAI, USDT, and USDC.
- ShibaSwap Analytics (also known as BONEFOLIO): a complete analytics page where the historical staking APYs are displayed for each of the ecosystem tokens. Burn and mint amounts as well as fees are displayed. It’s interesting that the amount of BONE rewards are displayed per $1000 for each pool, and the yearly/monthly/daily APY. The page also provides a portfolio tracker.
The ShibaSwap case is a good example of how a crypto app can be successful if it is especially fitted for a community and designed to maximize the engagement of that community with it. ShibaSwap initially started as a fork, but its functionality is far from simple or straight copied, it has evolved to a state where it is tailored to fit in the ecosystem of their three flagship coins by customizing the reward allocations. It is also surprising how the product is designed with a gamified experience in mind that maximizes the engagement and algo eases the burden of the DeFi jargon, which is something daunting for first time users of DeFi (something that is common among many of the Shiba Inu community).
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