What Is Shiba Inu (SHIB)
Shiba Inu (SHIB) is a decentralized cryptocurrency that was created as an experiment in decentralized community building and is built on the Ethereum blockchain. As a meme coin, it draws inspiration from Dogecoin, featuring the Shiba Inu dog breed as its mascot. Despite its playful beginnings, SHIB has developed into a more established project with a complex ecosystem and broad market presence. It operates using Ethereum’s ERC-20 standard, which provides it with the security and advanced smart contract functionality of the Ethereum network. SHIB can be used within its ecosystem in various decentralized finance (DeFi) applications.
Who Created SHIB
SHIB was created anonymously in August 2020 by an individual or group known only by the pseudonym “Ryoshi.” According to Ryoshi, SHIB was launched as an experiment in decentralized spontaneous community building. Unlike other cryptocurrencies that have clear development teams or foundations behind them, SHIB is intended to be entirely community-driven. The development of the Shiba Inu ecosystem is supported by a dedicated community called the “Shib Army,” which has grown rapidly and become one of the most active communities in the cryptocurrency space.
How Does SHIB Work
Shibarium
Shibarium is a layer-2 blockchain solution developed to address the scalability issues associated with Ethereum, increase transaction speeds and reduce costs, making it more efficient for users to interact with the Shiba Inu ecosystem. Shibarium is also designed to support the development of decentralized applications (dApps) within the ecosystem, through an infrastructure that supports growth and innovation.
ShibaSwap
ShibaSwap is a decentralized exchange that facilitates the trading of tokens within the Shiba Inu ecosystem. ShibaSwap includes features like “Dig,” “Fetch,” and “Bury,” which allow users to earn rewards by providing liquidity, staking their tokens, or participating in yield farming. Users can stake their SHIB tokens to earn rewards in BONE tokens, which are used for governance purposes within the ecosystem. ShibaSwap aims to provide a secure and user-friendly decentralized trading platform. The integration of Shibarium into ShibaSwap further enhances its capabilities by reducing transaction costs and improving transaction speeds.
Dig: Provide liquidity to the ShibaSwap liquidity pools by contributing SHIB or other tokens to earn BONE rewards. This process involves pairing SHIB with another token (like ETH) to create liquidity pairs that facilitate trading on the exchange.
Fetch: Users can retrieve Uniswap V2 LP (Liquidity Provider) tokens and migrate them to ShibaSwap for additional rewards. It incentivizes users to move their liquidity from other decentralized exchanges to ShibaSwap, thereby increasing the platform’s liquidity.
Bury: The staking mechanism of ShibaSwap. Users can stake their SHIB, LEASH, or BONE tokens to earn rewards. When users “bury” their tokens, they lock them up in the staking contract for a set period, earning rewards proportional to the amount staked and the duration of the stake.
Multi-token Ecosystem
The Shiba Inu ecosystem includes multiple tokens, each serving specific purposes and enabling a diverse range of functionalities. SHIB is the primary token used for transactions and as a medium of exchange. LEASH is a secondary token with a limited supply, originally intended to be a rebase token but now primarily used for staking and liquidity provision. BONE is used for governance, allowing holders to vote on proposals and influence the future direction of the ecosystem.
Shiba Eternity and Shib: The Metaverse
The Shiba Inu ecosystem also includes Shiba Eternity, a mobile collectible card game that integrates blockchain-based rewards to enhance user engagement. Shib: The Metaverse is a virtual reality platform where users can interact, explore, and transact in a fully immersive digital world tailored to the Shiba Inu community.
Why Trade SHIB
Transactional Medium
SHIB can be used as an alternative to traditional currencies for various transactions. Within the Shiba Inu ecosystem, SHIB is utilized for trading, liquidity provision, and as a medium of exchange for services and products. Many online merchants and platforms have started accepting SHIB as a form of payment, expanding its use case beyond the ecosystem. For instance, platforms like NOWPayments enable merchants to accept SHIB, making it a viable option for everyday transactions and purchases.
Staking and Yield Farming
Through ShibaSwap, users can stake their SHIB tokens to earn rewards in the form of BONE tokens. Staking involves locking up SHIB tokens for a certain period to support the network and earn rewards. Yield farming allows users to provide liquidity to ShibaSwap’s liquidity pools and earn a portion of the transaction fees generated on the platform. These activities not only provide financial incentives for users but also contribute to the overall stability and security of the ecosystem. Yield farming on ShibaSwap is designed to offer competitive rewards and efficient liquidity management. By participating in staking and yield farming, users can actively contribute to the growth and sustainability of the Shiba Inu ecosystem while earning passive income.
Governance
BONE tokens, earned through staking and yield farming using SHIB, are used for governance within the Shiba Inu ecosystem. Holders of BONE tokens can participate in the decision-making process by voting on proposals and changes to the ecosystem. This decentralized governance model ensures that the community has a direct say in the future development and direction of the Shiba Inu project. The governance model is designed to be inclusive and transparent, allowing token holders to voice their opinions and influence important decisions.
Community Engagement
The Shiba Inu community, known as the Shib Army, plays a crucial role in the success of the project. The community is highly active and engaged, driving various initiatives and contributing to the growth and development of the ecosystem. The Shib Army organizes events, educational campaigns, and charitable activities, enhancing the project’s visibility and impact. Community engagement is a key factor in the project’s resilience and adaptability, as it ensures continuous support and feedback from a diverse group of users.
SHIB Tokenomics
As of mid-2024, SHIB has a market capitalization of approximately $10.59 billion. The circulating supply of SHIB is around 590 trillion tokens. The total supply was initially set at 1 quadrillion tokens. A large portion of these tokens was sent to Ethereum co-founder Vitalik Buterin, who burned 40% of them and donated the rest to various charities, reducing the circulating supply.
SHIB employs deflationary mechanisms to increase the scarcity and help mitigate inflationary pressures on the token’s value over time. One of the primary deflationary measures is the periodic burning of SHIB tokens. Token burning involves sending a certain amount of tokens to an irretrievable address, effectively removing them from circulation.
How to Trade SHIB on Flipster
- Sign up for an account. Go to the Flipster website or download the Flipster app.
- Click the [Trade] tab.
- Search for SHIB, and click on it.
- Select the leverage (up to 100x).
- Select either a Trigger Order or Market Order.
- Input the amount of crypto you wish to trade, or select a percentage of your available funds to use.
- Once you have confirmed the details, click the [Long] or [Short] button to open a position.