Few things in the crypto space have captured the public's imagination, like Shiba Inu. Born from the depths of meme culture, Shiba emerged as a playful and charismatic token that quickly gained attention for its cute dog logo and its aspiration to be the "Dogecoin Killer."
Now Shibarium — a Layer 2 decentralized finance (DeFi) protocol — wants to redefine the relationship with the Shiba Inu token ($SHIB) and the broader world of DeFi.
In this article, we explore the fascinating story of SHIB and delve deep into the transformative potential of Shibarium. Join us as we discover how Shibarium is on the brink of changing the DeFi game and the Shiba Inu ecosystem.
What is Shiba Inu?
Shiba Inu (SHIB) is an altcoin based on the Ethereum blockchain that uses the Japanese hunting dog breed Shiba Inu as its mascot. Shiba Inu is often considered an alternative to Dogecoin and has been dubbed the Dogecoin killer.
Meme coins are cryptocurrencies based on popular internet memes, like the confused Shiba Inu dog in the case of Shiba Inu and Dogecoin. Developers often create meme coins as a joke or parody of mainstream altcoins.
Most meme coins have no digital or real-world utility yet; instead, they build community. Learn more about meme coins and their impact on the cryptocurrency industry here.
- Shiba Inu is an Ethereum-based meme coin whose mascot is the Japanese Shiba Inu hunting dog.
- The SHIBArmy —its supporters — regard it as an alternative to Dogecoin and call it "the Dogecoin killer."
- The Shiba Inu's white paper — the woof paper— is available on the ShibaToken.com website. It outlines the guidelines for its ecosystem.
- Ryoshi, an individual or group, created Shiba Inu in August 2020.
- Shiba Inu remains in the top ten of all meme cryptocurrencies by its market cap, trailing only Dogecoin.
The Shiba Inu Ecosystem
The Shiba Inu ecosystem has become a multifaceted and vibrant corner of the crypto world. At its core is the Shiba Inu token. Over time, the ecosystem has expanded to include Leash (LEASH) and Bone (BONE), each with unique utilities and functions within the ecosystem.
- Shiba Inu (SHIB): The project's primary currency, with a supply of one quadrillion (1,000 trillion), locked 50% in Uniswap (for liquidity), and then the other 50% sent to Ethereum for safekeeping.
- Leash (LEASH): The second token in the Shiba Inu ecosystem. There are only 107,646 tokens available in total supply.
- Bone (BONE): With a total supply of 250 million tokens, Bone falls between the other two tokens in terms of circulation supply. Its purpose is to be a governance token that lets the SHIBArmy vote on proposals.
- ShibaSwap: A decentralized exchange that offers users opportunities for yield farming and staking, further enhancing the ecosystem's DeFi capabilities.
- Shiba Inu Incubator: For looking beyond popular art forms like painting, photography, and digital rendering to find ways to celebrate creativity and ingenuity.
- Shiboshis are 10,000 non-fungible tokens (NFTs) with Shiba Inu designs written on the Ethereum blockchain. Each Shiboshi is unique and collectible.
Participants in the Shiba Inu ecosystem who contribute liquidity can earn rewards by staking SHIB, BONE, and LEASH (which results in xSHIB, xBONE, and xLEASH yields).
Shiba X Tangem hardware wallets
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The SHIB wallets guarantee complete security and independence of the user's crypto assets. They are impervious to hacking, fraud, malware, and crypto exchange bankruptcies.
You can get a next-generation Shiba hardware wallets powered by Tangem today.
Despite its playful nature, the Shiba Inu ecosystem has cultivated a dedicated community. It remains a fascinating experiment in DeFi, exploring new avenues and opportunities as we witness with Shibarium.
What is Shibarium?
Shibarium is a layer-2 network operating on the Ethereum blockchain. It is supported by SHIB tokens and functions as an extension of the Ethereum ecosystem.
According to the Shiba Inu Ecosystem blog, this particular layer should function as a protocol that operates on top of existing blockchain networks. Its primary objective is facilitating faster, cheaper, and more secure off-chain transaction processing while leveraging the Ethereum blockchain's security.
Following some initial challenges, the Shiba Inu team announced the successful completion of the highly anticipated Shibarium Bridge on August 28, 2023.
"Bridging" refers to the process of transferring funds from a primary blockchain layer, Layer-1, to a secondary blockchain layer, referred to as Layer-2.
Shibarium as a Layer 2 Solution
Layer 1, in the context of blockchain technology, is the fundamental underlying protocol for a blockchain network, such as Ethereum. Layer 2 refers to a third-party protocol that operates on top of Layer 1, such as Shibarium.
Shibarium is expected to incorporate a new monitoring system and additional functionalities to cope with substantial volumes of user activity. Such features will include rate limiting at the RPC level and auto server reset in preparation for huge traffic levels.
How Shibarium will affect the Shiba Inu ecosystem
Given the prevailing issue of high gas fees and slow transactions on the Ethereum network, Shibarium is a proactive measure that aims to solve issues. Shibarium is also designed to provide users with a platform for yield farming and liquidity provision.
- Governance and Tokenomics
Like other Layer 2 solutions, Shibarium aims to offload a portion of computing activities off-chain. This approach will reduce the strain on Ethereum's mainnet caused by high transaction volumes.
The gas fees in Shibarium will be paid in BONE, with twenty million BONE tokens reserved as a motivating factor for validators and delegators within the Shibarium ecosystem.
In the Shibarium network, users must lock at least 10,000 BONE tokens to meet the criteria for becoming validators. Users who want to support the network without participating in node operation can delegate their tokens.
- Community and Partnerships
Shibarium has also announced its collaboration with Heimdall Validator and Bor block producer nodes. While Bor will be fully compatible with the Ethereum Virtual Machine (EVM), Heimdall will be built on top of the Tendermint consensus engine.
Shibarium has sent invitations to six different contributor categories. It encourages web3/web4 app developers to create software for the Shibarium platform. Enrollment for validators and delegators is also currently open.
Furthermore, businesses interested in accepting Shiba Inu for payments can now apply via the Join Shibarium website. The applications are also open to ecosystem managers and content producers to participate in Shibarium's marketing and development initiatives.
- DEXs and Shibarium tokens
Shytoshi Kusama— the lead developer in the Shiba Inu network — hinted at incorporating Shibarium into Shiba Inu (SHIB) metaverse initiatives and the Shiba Eternity game. ShibaSwap allows users to trade tokens and farm yields using the Bone token ($BONE).
PawSwap and Marswap Staking also provide additional trading opportunities through the $PAWSWAP and $MSWAP tokens. Serp Finance also provides a perpetual DEX experience with its $SERP token.
- Meme coins and NFTs
NFTs and meme coins are essential components of the Shibarium ecosystem. Shiboshis is a notable NFT project, and meme coins such as $BAD, $PYRITE, $KOYO, $HEEL, and others contribute to the ecosystem's diversity.
- Shibarium launchpads and decentralized applications(dApps)
The ecosystem assists new projects through the Dogpad ($DOGPAD) and ShibPad($SHIBP) launchpads, helping projects gain traction and visibility.
Shibarium's ecosystem also features diverse dApps.
- Shib Chomp, powered by the $CHOMP token, provides safe storage solutions.
- Treat improves stability and governance by leveraging the stablecoin governance token $TREAT.
- Prodigy introduces a sniper bot for efficient trading with the $PRO token.
- Shibarium Name Service ($SNS), like Ethereum Name Service (ENS), simplifies addresses.
- Shib Chomp, powered by the $CHOMP token, provides safe storage solutions.
Why is Shibarium important?
Shibarium is important for Shiba Inu in many ways. It has several key features that will improve the project's capabilities and long-term potential, including:
- Faster transactions: Shibarium introduces a Layer 2 solution to the Shiba Inu ecosystem, which results in faster transaction processing times. This upgrade will accommodate significant growth and boost transaction speeds.
- Enhancing utility: SHIB's current supply significantly impedes its growth. Shibarium addresses this issue by adopting BONE as its native currency. Validators will be compensated in BONE for securing and validating transactions within the network.
- Lower transaction fees: Ethereum users have frequently faced exorbitant transaction fees, occasionally exceeding the transaction value. Shibarium will most likely reduce gas fees.
- DApp development: Shiba Inu lacked the resources to function as a native coin for DApps. Shibarium aims to give developers the technical resources they need to create DApps tailored to the Shiba Inu ecosystem.
What Shibarium means for SHIB, BONE, and TREAT
Introducing Shibarium is a watershed moment in the Shiba Inu (SHIB) ecosystem. It is another significant catalyst for SHIB's mass adoption.
Shibarium will introduce TREAT — still in development — as a new financial incentive tool in addition to SHIB and BONE.
The Shiba Inu team emphasizes that all materials required for Shibarium's beta testing phase will be provided for free. So, consider any offers to purchase testing tokens as fraudulent.
Shibarium is much more than an advancement in the Shiba Inu ecosystem. It is a community-driven initiative that promises to prioritize user experience by focusing on transaction speed, cost efficiency, and scalability.