The Shiba Inu coin could have been the swan song in the recent cryptocurrency cycle with many amateur investors burnt after buying in too late. Interest in crypto has certainly died down, but it represents a good time to buy for anyone looking to get into crypto.
ShibaSwap is a decentralised cryptocurrency exchange that specifically focuses on the three coins associated with Shiba. Shiba Inu, Leash and Bone. Bone has not been made available to buy until ShibaSwap launched.
Shibaswap was supposed to launch back in May amid the exponential growth period of Shiba Inu coin, but its development was delayed, and it finally launched on the 6th of July.
With ShibaSwap finally live, how do you buy Bone? And what is steaking, and how do you do it?
Related: Helium Hotspot Review
How to pair your wallet with Shibaswap
If you already have a decentralised wallet, the process is quite simple.
I use a browser, but it is a similar process with mobile.
- Go to https://shibaswap.com/
- Select connect wallet at the top right
- Select your wallet, you have a choice of MetaMask, WalletConnect and Coinbase Wallet
- Authorise the connection via MetaMask or whatever wallet you use
How to buy Bone tokens
Buying tokens is the same concept as most other platforms such as PancakeSwap etc
- On the homepage, select swap
- Under swap from, select whichever token you want to swap, I used Ethereum
- Click the box below this to select the token you want to swap to
- Assuming you don’t already have Bone, you can type in the name Bone and select, it has a little cartoon boke icon with a red background
- Set the amount of the token you want to swap
- You will be informed of a liquidity provider fee which is 0.25%
- Hit swap, and you will be asked to confirm the swap
- Matamask should load up, then you will be informed of a Gas fee, which is an additional charge to convert from Ethereum to Bone. At the moment, it is quite low, between $10-$15 when I tried it. Back in May it had risen to over $80
- Click confirm and wait for the transaction to process
It is possible the transaction will fail, and you may need to increase the slippage tolerance via the cog button, but I had no problems with it when I tried
What does provide liquidity mean, what are the rewards and how do I do it?
In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins.
Liquidity is important for all tradable assets, including cryptocurrencies. Low liquidity levels mean that market volatility is present, causing spikes in cryptocurrency prices. High liquidity, on the other hand, means there is a stable market with few fluctuations in price.
Shibaswap allows you to provide liquidity and then will reward you by charging buyers/sellers a liquidity provider fee of 0.25%, which is distributed proportionally to liquidity providers.
In order to claim these returns, you must deposit your SSLP (ShibaSwap Liquidity Provider) tokens into the allocated pair box at WOOF (steaking).
Once SSLP tokens are deposited, returns are accrued in real-time.
The big caveat here is that some of your funds get locked into the platform for 6 months.
You can claim 33% of your Woof Returns weekly, but the remaining 67% will be time-locked for 6 months.
How to provide liquidity
This is a similar process to swapping tokens, though for this one I had to adjust the slippage.
- Select Dig
- Add liquidity
- Select your first token (Ethereum for me)
- Select the second (Bone)
- You need enough Bone to create the pool share so I adjusted the figure in the Bone input box (I hit max)
- Hit submit and approve the transaction in MetaMask (I got stung for $18 with this one)
How to steak Bone?
Steaking locks in your funds for a number of months but you will be rewarded Woof Returns as they call it.
When you stake Shib, Leash, or Bone, you will receive xSHIB, xLEASH, or tBONE. Those tokens represent your share of the pool.
Woof Returns are distributed weekly. At the moment, they do not declare the APY (annual percentage yield).
- With this, you need to go to the Bury section (Steak Coins)
- Select the token you want to bury
- Select the amount you want to buy
- Approve the transaction and pay a small fee.
As always, I advise caution with cryptocurrency, especially these meme coins. It is highly likely that these all have poor long term chances of succeeding, but as we saw earlier in the year, there is the potential to get lucky and make huge returns. It’s basically gambling.
If you have not already invested in crypto, now seems like a good opportunity. Just bet/invest what you can afford to lose.