ShibaSwap Explained: What is ShibaSwap & How Does it Work?

Vinod Dsouza
What is shibaswap
Source: Pixabay

Shiba Inu’s ecosystem grew at a rapid pace in 2021 as the team launched several applications to make its way into the decentralized financial system. ShibaSwap was launched in July 2021 at a time when Shiba Inu delivered massive gains between its inception in August 2020 to July 2021.

In this article, you will learn what about ShibaSwap, how it works, and how you can make money from it.

Also Read: Will Shiba Inu Reach ‘1 Cent’ 10 Years From Now?

What is ShibaSwap?

Source: Twitter

ShibaSwap is a decentralized crypto exchange (DEX) that allows users to trade tokens on a peer-to-peer network. Users can ‘swap’ tokens directly on ShibaSwap without the need for a third-party protocol to approve the transaction. ShibaSwap is built on the Ethereum network and users can trade ERC-20 tokens only. In addition, users can also trade stablecoins and ‘bury’ their tokens (what is known as staking in the DEX world) to earn passive income.

The governance tokens that fuels ShibaSwap is its native tokens Bone and Leash which act as a primary payment option. This means you can buy Shiba Inu, Bone, or Leash and ‘swap’ them for the tokens you would like to purchase. Apart from the Shiba Inu trifecta, users can also ‘swap’ Ethereum and other tokens to own cryptos of their choice.

Also Read: Shiba Inu Could Reach $5 By 2050, Predicts Analytics Firm

How Does ShibaSwap Work?

Source: Twitter

SHIB was the first token to be listed and incentivized on ShibaSwap making it the flagship token on the DEX. The two siblings, Bone and Leash act as an anchor to the DEX and are designed to serve as the governance tokens. Users who hold Bone will be given authority to enter the Doggy DAO protocol. For the uninitiated, DAO stands for ‘Decentralized Autonomous Organization’ where holders can vote for upcoming proposals of the project.

The more Bone tokens a user holds, the greater his/her voting power would be. Also, Bone has a total supply of a fixed 250 million tokens. A Doggy DAO voting process is already underway concerning minting Bone for Shibarium. Read here to know what members voted for and against. Therefore, Bone holds good value in the Shiba Inu ecosystem, and users can accept or reject an upcoming proposal.

Also Read: Shiba Inu: Shytoshi explains the Possible Outcome post-Shibarium

The other token in the ecosystem is Leash and it acts as a main store of value for ShibaSwap investors. Moreover, the token has a limited supply of 107,647 tokens. Users can ‘bury’ their Leash to earn extra Bone as passive income. For example: Burying a Leash can yield 1% of Bone minted per block. Users can also increase their voting power on Doggy DAO from the Bone earned from ‘burying’ Leash.

Therefore, SHIB, Bone, and Leash act as a chain on ShibaSwap for the smooth functioning of the network. The DEX platform has intertwined SHIB, Bone, and Leash and given them the best use case in the platform.