Shiba Inu (SHIB), Dogecoin’s rival, has received a lot of attention from the community because of the usefulness of the SHIB token. Today, Coincu will guide you on how to stake Shiba Inu to maximize profits.
About Shiba Inu
What is Shiba Inu (SHIB)?
Shiba Inu (SHIB), a meme cryptocurrency riding the waves of popularity, has etched its place in the crypto sphere as an Ethereum-based token. Unveiled in August 2020 by the enigmatic developer Ryoshi, whose identity mirrors the mystery surrounding Bitcoin’s “father” Satoshi Nakamoto, SHIB has captured the attention of crypto enthusiasts with its playful inspiration drawn from the Shiba Inu, a beloved Japanese dog breed.
Operating as an ERC-20 token on the Ethereum blockchain, SHIB embodies the spirit of meme coins, bringing a touch of humor and community-driven dynamics to the world of digital currencies. The allure of SHIB lies not only in its playful origins but also in its practicality, as Team Shiba asserts that the coin allows users the unprecedented opportunity to hold millions, billions, or even trillions of coins in their wallets.
History of Shiba Inu
In a dynamic year for pet-loving cryptocurrency enthusiasts, 2021 has proven to be exceptionally thrilling with the proliferation of dog-themed digital currencies. Among the rising stars in this niche, Shiba Inu (SHIB) has garnered substantial attention, gaining popularity as the so-called “Dogecoin killer.”
The SHIB coin’s meteoric rise is not only reflected in its growing market capitalization but also in its unique positioning as a social media sensation, with fervent hopes that its potential will surpass even the esteemed Dogecoin (DOGE).
The initial circulating supply of Shiba Inu stood at a staggering 1 quadrillion tokens. To ensure liquidity, Ryoshi, the project’s founder, locked 50% of these tokens in Uniswap. The remaining 50% found its way into the wallet of Ethereum co-founder Vitalik Buterin. However, a twist in the tale unfolded as Vitalik opted to burn a substantial 90% of the coins, with the remaining 10% earmarked for charitable donations.
The ecosystem’s roadmap promises exciting additions, including an NFT art incubator named Shiba Artist Incubator. Within this incubator, a collection of 10,000 unique “Shiboshi” NFTs is anticipated, accompanied by an engaging NFT game aptly titled Shiboshi Game.
The utility of the Shiba Inu coin extends beyond its speculative value, as it serves as a reward mechanism for investors engaged in transactions on the ShibaSwap exchange. Simultaneously, SHIB plays a pivotal role in fostering the robust development of the Ethereum network, contributing to the creation of a diverse and dynamic decentralized finance (DeFi) ecosystem.
Shiba Inu ecosystem
In its commitment to the dog theme, Shiba Inu takes a playful approach, infusing its ecosystem with canine-centric terminology. According to the “WoofPaper” (whitepaper), Shiba Inu emerges as a vibrant and community-driven project with a singular focus on establishing a decentralized cryptocurrency. Because the ecosystem of Shina Inu is very diverse.
Ecosystem tokens
Shiba Inu boasts a diverse ecosystem featuring three key tokens: SHIB, LEASH, and BONE. Each token serves a unique purpose within the project, contributing to its vibrant and decentralized community.
- Basic Currency: SHIB is the foundational currency of the Shiba Inu project, initially launched with a supply of 1,000 trillion tokens.
- Liquidity Measures: To ensure liquidity, Ryoshi, the project’s founder, locked 50% of the initial supply in Uniswap.
- Vitalik Buterin’s Custody: The remaining 50% was sent to Vitalik Buterin, Ethereum’s founder, for safekeeping.
- Philanthropic Move: In May 2021, Buterin made headlines by donating more than 50 trillion SHIB tokens, valued at approximately $1 billion, to the COVID-19 poverty relief fund in India.
- Token Burn: Shortly thereafter, Buterin executed a “burn” by transferring 40% of the total SHIB supply to a dormant wallet, commonly referred to as a “dead wallet.”
- Rebase Origins: LEASH, the project’s second token, initially served as a rebase token, tracking the price of Dogecoin.
- Transition to ERC-20: Developers decided to transform LEASH into an ERC-20 token, offering greater flexibility and compatibility within the Ethereum ecosystem.
- Staking Opportunities: LEASH holders can participate in staking their tokens in the liquidity pool, earning xLEASH as rewards for their contribution.
- Democratic Power: BONE takes on the role of a governance token within the Shiba Inu ecosystem.
- Limited Supply: With a fixed supply of 250,000,000 tokens, BONE empowers the ShibArmy to participate in the governance process.
- Doggy DAO Influence: In the future, BONE will enable ShibArmy members to vote on proposals within the Doggy DAO, emphasizing the community’s role in shaping the project’s direction.
Components in the Shiba Inu ecosystem
- Preferred Exchange for SHIB and LEASH: ShibaSwap stands as the decentralized trading platform of choice for enthusiasts looking to exchange SHIB and LEASH cryptocurrencies.
- Empowering the Community: With a commitment to decentralization, ShibaSwap offers users a platform where they can securely trade and stake their assets, fostering community engagement and liquidity.
- Authorized Creative Center: The Shiba Inu Incubator emerges as an authorized center with a distinct mission: to support and nurture various art forms, including painting, photography, and digital rendering.
- Celebrating Creativity: The goal of the incubator is to celebrate creativity and skill, providing a platform for artists to showcase their talents and contribute to the vibrant Shiba Inu community.
Decentralized and Unique Tokens: Shiboshis are 10,000 non-fungible tokens (NFTs) characterized by distinct features, making each Shiboshi a unique and collectible piece of digital art.
Diverse Characteristics: With individual characteristics, Shiboshis offer a novel way for collectors to engage with the Shiba Inu ecosystem, adding a layer of creativity to the project.
What is Shiba Inu staking?
Shiba Inu token holders have found a unique way to maximize their investment through the process of Shiba Inu staking. Unlike traditional mining, Shiba Inu’s total supply was minted upon its launch, making mining impossible. However, users can stake their Shiba Inu tokens and reap rewards in the form of xBONE, xSHIB, and xLEASH tokens.
The staking process, aptly named “Bury,” allows users to stake Shiba Inu tokens to a pool, providing liquidity and simultaneously acting as validators. Shiba Inu staking is a straightforward process, accessible through various platforms. Users can choose from centralized exchanges, decentralized exchanges, or opt for the native Shiba Swap platform.
One of the key features of Shiba Inu staking is its flexibility. Unlike some staking mechanisms that lock up assets for a specific period, staked Shiba tokens can be withdrawn at any time.
Where to stake Shiba Inu?
As the popularity of Shiba Inu coins continues to soar, investors are presented with three primary avenues for staking: centralized exchanges (CEX), decentralized exchanges (DEX), and the native ShibaSwap platform.
ShibaSwap
ShibaSwap, the dedicated ecosystem platform for Shiba Inu, operates exclusively on the Ethereum blockchain. ShibaSwap actively encourages users to stake Shiba Inu directly on its platform.
ShibaSwap offers a unique proposition, creating an ecosystem that incentivizes users to contribute liquidity and stake Shiba Inu tokens within its network. The decentralized nature of ShibaSwap aligns with the broader ethos of the cryptocurrency community, providing users with more control over their assets.
CEXs
With one of the most substantial and active communities in the crypto space, Shiba tokens are listed on numerous major cryptocurrency exchanges globally. Notably, trading and staking of Shiba coins are supported on platforms such as Binance and Crypto.com, providing users with diverse options for engaging with their Shiba holdings. The interest payouts for staking vary, offering flexibility with options ranging from daily, weekly, and monthly payouts.
Centralized exchanges like Binance and Crypto.com stand out as behemoths in the crypto industry, allowing users to not only buy but also stake Shiba Inu tokens. These exchanges provide a user-friendly interface, making it accessible for both seasoned investors and newcomers to participate in Shiba Inu staking.
DEXs or DeFi platforms
For those inclined towards decentralization, Shiba Inu staking tokens is also possible on decentralized exchanges. Utilizing a cryptocurrency wallet such as Metamask, users can stake Shiba tokens, enjoying the benefits of decentralization and enhanced security.
Shiba Inu staking on Uniswap involves adding liquidity to a pool paired with Ethereum (SHIB/ETH). This strategic move not only supports the liquidity of the Shiba Inu token but also allows investors to earn fees generated when users trade these tokens within the pool.
The best platform to stake Shiba Inu
Shiba Inu staking on Binance, the largest and most renowned centralized exchange, has become an accessible endeavor for new users. Offering both flexible and locked staking options, Binance has streamlined the process, providing users with the opportunity to earn staking rewards while navigating different time frames.
Getting Started with Staking
To embark on the journey of staking SHIB tokens, users must first acquire Shiba Inu on the Binance platform. The process is user-friendly, requiring the creation of a retail investor account through a simple verification process.
This includes providing a phone number and email address, completing Know Your Customer (KYC) requirements, and setting up two-factor authentication for enhanced security. Once these steps are completed, purchasing Shiba Inu becomes a straightforward task, allowing users to use fiat currencies such as USD.
Staking Options and Terms
Binance presents a range of staking options, catering to diverse preferences, with durations spanning 10, 30, 60, 90, and 120 days. Additionally, the platform offers both flexible staking, enabling users to withdraw their staked SHIB tokens at any time, and locked staking, where withdrawal incurs a loss of interest.
Understanding Annual Percentage Rate (APR)
The Annual Percentage Rate (APR) for staking Shiba Inu on Binance varies across different plans. Flexible savings yield a 0.5 percent APR, while the locked staking option for a 120-day period offers an enticing 12 percent APR. Users can choose a plan that aligns with their investment goals and preferences.
Securing Your Spot
It is crucial to note that the availability of both flexible and locked staking plans operates on a first-come, first-served basis. The limited slots for these plans tend to fill up swiftly, emphasizing the importance of prompt decision-making for those seeking to capitalize on these opportunities.
How to stake Shiba Inu
On ShibaSwap
Here’s a step-by-step guide on how to stake Shiba Inu tokens and an overview of the additional features within the SHIB army platform:
To initiate the Shiba Inu staking journey on ShibaSwap, users must begin by connecting their wallets, such as MetaMask, to the ShibaSwap platform. Once the wallet is linked, users should navigate to the BURY section, which conveniently doubles as the “Stake Tokens” area. Here, individuals can specify the amount of Shiba Inu tokens they wish to stake and subsequently the transaction using their wallet when prompted.
Beyond the staking process, the SHIB army platform includes various aspects, notably the Doggy DAO and a built-in exchange. These features add depth to the Shiba Inu experience, providing users with more avenues for engagement within the ecosystem.
On CEXs
For those looking to stake Shiba Inu tokens with added flexibility, CEXs provide a convenient avenue. To embark on Shiba Inu staking through a CEX, the initial step is to identify an exchange that supports Shiba Inu staking. Once the suitable exchange is found, the process is straightforward, offering users the ability to earn passive income with ease.
The following steps guide users through staking Shiba Inu tokens on a CEX:
- Find a Shiba Inu-supported exchange: The first crucial step is to locate a CEX that supports Shiba Inu staking. Ensure the chosen exchange aligns with your preferences and requirements.
- Navigate to the Earn Section: Within the chosen CEX platform, navigate to the Earn section. This dedicated area offers a variety of ways to earn passive income, including the option to stake SHIB tokens.
- Search for SHIB: Type “SHIB” into the search bar within the Earn section to locate the Shiba Inu staking option. The results that appear will guide you to the relevant section for staking SHIB.
- Enter Staking Details: Click on the results related to SHIB staking and enter the amount of SHIB tokens you wish to stake. Confirm the details of your staking transaction to proceed.
On DEXs or DeFi platforms
One avenue proving to be particularly lucrative is staking on decentralized exchanges, with Uniswap leading the way in offering the highest Return on Investment (ROI). Staking Shiba Inu tokens on a decentralized exchange like Uniswap allows investors to earn substantial yields, with the Uniswap V2 SHIB/WETH pool currently boasting an impressive return of over 20%.
To aid investors in navigating the multitude of yield farming opportunities available on the Ethereum mainnet, platforms like DefiLlama serve as valuable tools. These platforms offer a comprehensive overview, allowing users to compare various yield farming options using the SHIB token.
Things to keep in mind when participating in Shiba Inu staking
Benefits of Shiba Inu staking
Staking Shiba Inu tokens involves holding a predetermined amount of the cryptocurrency in a wallet for a specified duration. The benefits of engaging in this process are multifaceted, offering participants a range of advantages:
Staking enables holders to accumulate rewards in the form of additional SHIB tokens, providing a passive income stream for participants.
Stakers wield influence in the governance of the Shiba Inu network by actively participating in the voting process on proposals.
Staking contributing to network security, and holders, by actively participating in this process, can play a role in boosting demand for SHIB, thereby positively impacting its market value
Engaging in staking on ShibaSwap grants users access to exclusive features and benefits within the Shiba Inu platform, enhancing their overall experience.
Downsides of Shiba Inu staking to keep in mind
Here are some considerations to keep in mind:
To maximize staking rewards, participants often find themselves needing to lock their tokens for an extended period and commit to staking large amounts. This could limit liquidity and flexibility, tying up assets for longer durations.
Staking tokens on centralized exchanges comes with the risk of losing accrued interest if redemption occurs before the maturity period. Early withdrawal may result in forfeiting the interest earned during the staking period.
Locked staking on centralized exchanges is subject to predefined quotas. Missing out on available slots may limit the ability to engage in staking, especially during peak periods.
Staking on Shiba Swap, an Ethereum-based platform, is impacted by the high gas fees on the Ethereum network. These fees can present a significant hindrance to the staking process, affecting overall profitability.
The inherent volatility of Shiba Inu and other cryptocurrencies introduces an element of risk. If the price experiences a drastic drop during or after the staking period, participants may find themselves facing losses instead of the expected gains.
Conclusion
Shiba Inu, since its inception, has distinguished itself as one of the standout performers in the cryptocurrency market, surpassing even the more established digital assets. Despite its impressive track record, it is crucial to approach the world of cryptocurrencies with a clear understanding of the inherent risks, considering their highly volatile nature and the absence of regulatory oversight from government laws or agencies.
While Shiba Inu’s success story is compelling, potential investors should approach the cryptocurrency market with a realistic perspective, recognizing both the opportunities and risks it presents. Prudent research, risk management, and, when necessary, consultation with financial professionals are essential components of navigating the dynamic landscape of cryptocurrency investments.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
