As the world of decentralized finance (DeFi) continues to evolve, ShibaSwap, the decentralized exchange (DEX) of the Shiba Inu ecosystem, is preparing to take a significant leap forward with the forthcoming introduction of liquid staking.
Over the weekend, Shibarium Updates (@Shibizens), an exclusive channel dedicated to the Shibarium ecosystem’s developments, alerted the public to this impending upgrade. The channel announced, “Liquid staking is coming to ShibaSwap,” presenting this upgrade as a significant step in the evolution of DeFi.
The announcement of this development was made on Shiba Inu’s newly rebranded website.
Liquid staking on ShibaSwap will allow users to stake their tokens on the DEX while maintaining liquidity. This feature will enable users to earn rewards on their staked assets, while also having access to their locked assets.
Users staking their tokens via the liquid staking feature will receive liquid tokens that represent their staked assets. These liquid tokens provide users with the ability to trade and serve as collateral on DeFi platforms.
In the case of ShibaSwap, @Shibizens revealed that users who stake their TREAT tokens using the liquid staking feature will receive liquid Treat tokens (veTREAT). Besides representing the users’ stakes, veTREAT also gives holders the governance power to determine the distribution of rewards for liquidity mining. It’s important to note that TREAT is not yet available for public use.
Another feature expected with the ShibaSwap update is the Karma Point system. Users can earn points by engaging in certain activities, such as transferring Shiba Inu ecosystem tokens like SHIB, BONE, LEASH, and TREAT. Providing liquidity on ShibaSwap is another way users can earn Karma points. These points enhance users’ voting power within the Shib Doggy DAO, a decentralized autonomous organization that is set to launch before the end of next year.
The Shiba Inu ecosystem team, however, has not yet disclosed a timeline for the launch of liquid staking on ShibaSwap. Users eager to stake their tokens using the liquid staking feature can do so on K9 Finance, a Shibarium-based liquid staking and derivative platform, which remains the official liquid staking partner of the Shiba Inu ecosystem.
Since its launch on Shibarium on September 18, K9 Finance has gained 248 stakers who have collectively staked 2.42 million BONE tokens. As of now, K9’s liquid staking token, knBONE, has a market cap of $1.45 million.
ShibaSwap has undergone noteworthy upgrades since its initial launch on Ethereum in July 2021. The DEX transitioned to Shibarium earlier this year, transforming it into a multi-chain decentralized crypto exchange. This move allows users to swap tokens between the Ethereum and Shibarium networks while facilitating SHIB burns. In October, the Shiba Inu ecosystem development team launched ShibaSwap 2.0, introducing new features like seamless migration and centralized liquidity pools.