The creators of the Shiba Inu (SHIB) token kept their promise and launched their own decentralized exchange Shibaswap last week. For the first day, the volume of assets on the platform exceeded $ 1 billion and currently stands at $ 1.54 billion.For comparison, the volume of assets on the leading decentralized exchange Uniswap, taking into account the second and third versions, is $ 5.65 billion, and on Sushiswap – $ 2.82 billion …
SHIB hit the market in the middle of last year and has proven to be the most successful Dogecoin-themed token. It is currently still trading 80% below the all-time highs recorded on May 10, despite Elon Musk’s attention. At the end of June, the entrepreneur wrote that he had a Shiba Inu puppy, thereby causing a short-term jump in the SHIB rate.
The explosive growth in the volume of assets on Shibaswap is associated with high annual interest rates (APR) from profitable farming. They, in turn, were the result of low liquidity at the start and high emission of tokens, which users are invited to earn as rewards. Thus, initially the APR in some pairs was more than 50,000%, but over time it fell to less than 700% and is likely to continue to decline.
Users also express doubts about the technical component of the platform. Thus, the DeFiSafety portal estimates the reliability of Shibaswap at 35% with a pass rating of 70%. Shortly after the launch of Shibaswap, yearn.finance’s lead developer banteg drew attention to the fact that all liquidity could easily be withdrawn from a single address. Subsequently, the Shibaswap developers turned to yearn.finance and transferred the administrator role to a multi-signature account, thus partially solving the problem, and also promised to set a timed withdrawal block.