ShibaSwap: Decoding Shiba Inu’s Native DEX

What can you do on ShibaSwap?

Shiba Inu with RGB split standing on a futuristic looking Shibaswap machine.
Created by Gabor Kovacs from DailyCoin

ShibaSwap is the native decentralized exchange of the Shiba Inu (SHIB) ecosystem. When the platform first started making puppy eyes at the SHIB Army, it wasn’t much more than a glorified UniSwap fork. Fortunately, ShibaSwap has outgrown its doggy daycare phase and evolved into a thriving DeFi ecosystem with a howling pack of utilities. 

In true meme coin fashion, ShibaSwap has made light of complex DeFi functions and rebranded them into canine-themed apps, leading to some confusion amongst new users. With the launch of Shibarium just around the corner, there’s never been a better time to get a handle on ShibaSwap terminology.


What can I actually do on ShibaSwap? What is the difference between ‘Dig’ and ‘Woof?’

Step aside Dogecoin (DOGE); in this article, we’ll burrow into the ShibaSwap kennel and unpack its features, functions, and role in the broader Shiba Inu ecosystem. 

What Is ShibaSwap?

Developed by Shytoshi Kusama, ShibaSwap is the primary DeFi platform within the Shiba Inu ecosystem. ShibaSwap was launched in 2021, taking inspiration from well-established DEXs like SushiSwap and Uniswap, but with a puppy-themed focus that sets it apart.

ShibaSwap Main Site

ShibaSwap is designed to boost the utility of the Shiba Inu tokens, offering a range of typical DeFi tools. Users can trade crypto tokens, deposit in liquidity pools, stake their coins, and vote on ShibaSwap governance proposals. 


It’s a hub for the Shiba Inu community, a place where the SHIB Army can earn rewards, track their portfolios, and stay updated on the latest developments in the Shiba Inu universe.

How Does ShibaSwap Work?

ShibaSwap follows the main principles of decentralized finance by allowing anyone to access financial tools in a permissionless, trustless environment.

But ShibaSwap’s set of tricks doesn’t stop there. It’s a multifaceted platform that offers a range of services, each with its own unique mechanics. Let’s take a closer look at these features and how they work.


At its core, ShibaSwap is a decentralized exchange, and its primary function is trading Shiba Inu ecosystem tokens. This is handled by smart contracts on the Ethereum (ETH) blockchain, which allows users to trade any supported ERC-20 token directly with other users.

Beyond tokens like SHIB, BONE, and LEASH, the platform also supports a wide array of other tokens, including Polygon (MATIC) and Dai (DAI), providing users with a diverse range of trading options. The swapping process is basic, helping newbies to the DeFi space easily navigate the platform.


Continuing the Dog-theme, “Dig” is a fun way of providing liquidity to ShibaSwap. Users who add their tokens to a liquidity pool are essentially “digging” for BONE token rewards. 

When you dig, you create ShibaSwap Liquidity Provider (SSLP) tokens and deposit them into a liquidity pool. These tokens represent your share in the trading pool and can be used to claim your BONE rewards. 

The more liquidity you provide and the longer you leave your tokens in the pool, the more rewards you can potentially earn. This incentivizes users to contribute to ShibaSwap’s liquidity and decentralization, which helps stabilize the tokens’ prices and ensure smooth trading.


Why stake tokens when you could “Bury” them instead? “Bury” is ShibaSwap’s term for staking, another key feature of the platform. When you bury your tokens, you are temporarily removing them from circulation. In return for this, you earn rewards in the form of additional tokens.

On ShibaSwap, you can bury SHIB, LEASH, and BONE tokens. Once buried, these tokens earn returns paid out in a wrapped version of the staked tokens. For instance, if you stake LEASH or SHIB tokens, you receive xLEASH or xSHIB in return.

The rewards for burying tokens are distributed weekly, but there’s a catch. Only one-third of the rewards can be claimed immediately. The rest is locked up and vested over six months. 

This prevents stakers from mercilessly dumping their rewards on the market and encourages long-term participation in the ShibaSwap platform.


“Woof” is the term used in ShibaSwap for yield farming. This is a process where users can earn additional rewards by depositing their ShibaSwap Liquidity Provider (SSLP) tokens into the platform’s yield farm pools.

When you woof, you’re essentially putting your SSLP tokens to work. These tokens you received when you provided liquidity to the platform can be deposited into specific yield farm pools to earn rewards from various crypto projects listed on ShibaSwap.

The woofing reward mechanism is similar to burying. One-third of the rewards can be claimed immediately, while the rest is locked up for six months.

What makes woofing great is that the SHIB ARMY can leverage other crypto assets like Wrapped Bitcoin (wBTC), Tether (USDT), and USD Coin (USDC) to earn a wider variety of digital currencies.


ShibaSwap isn’t just about tokens; it’s also a platform for non-fungible tokens (NFTs). NFTs are unique digital assets that represent ownership of a specific item. NFTs are a huge part of the crypto market, and the Shiba Inu team hasn’t ignored them.

ShibaSwap was the original minting site for the “Shiboshis,” Shiba Inu’s central NFT collection. With 10,000 of them in existence, each Shiboshi is completely unique, adding a layer of rarity and collectability to these digital assets.

The Shiboshis aren’t just for show. Shiboshi holders can use their coveted puppies in Shiboshi Games, like trading card games and other community-led projects.


If you couldn’t guess, ShibaSwap is driven by community governance. This is where the “Vote” feature comes into play. By holding BONE tokens, you can join the ‘Doggy DAO’ to propose and vote on changes to the ShibaSwap protocol.

This voting power is a crucial aspect of the platform’s decentralized nature. It allows the community to have a say in the direction of ShibaSwap, making decisions on everything from what trading pairs get listed on the DEX and what rewards are received in Woof farms.

SHIBA INU Token Ecosystem

If you’re still scratching your head trying to figure out the different Shiba Inu ecosystem tokens, don’t stress! Here’s a quick recap of the main tokens associated with ShibaSwap.

  • SHIB – The token that started it all. Created by Ryoshi, SHIB is the foundational currency of the ShibaSwap platform.
  • BONE – The governance token of the Shiba Inu ecosystem. Holding BONE allows users to vote on proposals and changes to the platform and serves as Shibarium’s gas token.
  • LEASH – also known as the Doge Killer, LEASH is used to earn rewards within the ecosystem. It was also accepted for SHIB: The Metaverse Land Sale NFTs.

ShibaSwap Crypto Analytics

In the world of cryptocurrencies, data is king. Understanding the dynamics of a platform, its tokens, and the broader market trends is crucial for making informed decisions. ShibaSwap is no exception, and the platform offers a wealth of data for users to analyze.

The ShibaSwap analytics platform offers a standard glimpse into on-chain market data within the ecosystem. Users can track their rewards, liquidity positions, and portfolios in one convenient place.

ShibaSwap also offers insights into the broader SHIBA INU token ecosystem, including the distribution and total supply of tokens, the number of holders, and the overall market cap. This data provides a snapshot of the health and growth of the ecosystem.

Reviewing ShibaSwap Metrics

On the surface, it appears that ShibaSwap has a bounty of great features and must be one of the top decentralized exchanges in DeFi, right?

Wrong. ShibaSwap does boast plenty of useful tools, but they’re hardly revolutionary. As a result, ShibaSwap ranks low on trading volume and TVL metrics than its competitors. 

Sushiswap enjoys over 10x as much TVL as ShibaSwap does. Even PancakeSwap, the top DEX on the Binance Smart Chain, boasts more than double ShibaSwap’s trading volume through its Ethereum network pools alone.

Is ShibaSwap Safe to Use?

Before using any DeFi tool, you should ensure everything is safe. Fortunately, ShibaSwap takes this responsibility seriously and has implemented a range of measures to ensure the safety and security of its users.

ShibaSwap has been audited by CertiK, a leading blockchain security company. This audit involves carefully examining the platform’s smart contracts to find any vulnerabilities. ShibaSwap passed this audit with flying colors with a 92.54 security score.

Certik audit
Source: CerTik

That doesn’t mean it’s foolproof, though. Like any DeFi platform, ShibaSwap is not without its risks. Audited projects have been exploited before, and there’s always the risk of impermanent loss when providing liquidity. It’s crucial to understand the risks associated with decentralized finance and only use funds you can afford to lose.

ShibaSwap Pros and Cons

Like any platform, ShibaSwap has its strengths and weaknesses. Understanding these pros and cons can help users decide whether and how to engage with the platform.


  • Diverse DeFi Tools – ShibaSwap offers a range of essential services, including token swapping, liquidity provision, staking, and yield farming.
  • Decentralized governance – ShibaSwap gives its users a voice in the platform’s future direction and development decisions.
  • Strong Ecosystem – ShibaSwap is backed by a robust ecosystem of tokens (SHIB, LEASH, and BONE) and an unmatched community in the SHIB ARMY. 
  • The Home of Shibarium DeFi – ShibaSwap will be the base of operations for Shibarium DeFi, giving it plenty of room to grow as the ecosystem expands.


  • Low volume and TVL – Compared with similar DeFi platforms on Ethereum, ShibaSwap struggles to attract users.
  • Impermanent Loss – Like any platform that offers liquidity provision, ShibaSwap users face the risk of impermanent loss. 
  • No True Innovation – The tools available on ShibaSwap are nothing revolutionary and have been available on other dApps for years.
  • Lockup Periods – ShibaSwap’s staking and yield farming rewards have lockup periods. This means users can’t access all their rewards immediately, which may not suit your personal DeFi strategy.

On the Flipside

  • ShibaSwap is just one aspect of the wider Shiba Inu ecosystem. With Shibarium, SHIB: The Metaverse, and steadily decreasing token supply thanks to the Burn Portal, the Shiba Inu universe still has plenty to offer outside of ShibaSwap.

Why This Matters

ShibaSwap is a key feature of the Shiba Inu ecosystem, and its role and relevance will only increase with the launch of Shibarium. 


Is ShibaSwap trustworthy?

ShibaSwap has been audited by Certik and has been operational within the crypto space for years. While this is no guarantee that there will never be any issues, it’s an indicator that the platform is trustworthy.

What does ShibaSwap do?

ShibaSwap is a decentralized exchange and yield farming platform built on the Ethereum blockchain.

Is ShibaSwap still working?

Yes, ShibaSwap is fully operational on the Ethereum mainnet.

What happens when you stake SHIBA on ShibaSwap?

When you stake or “bury” Shiba tokens on ShibaSwap, you can earn crypto staking rewards to grow your holdings passively.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Finn Miller

Finn Miller is a New Zealand-based blockchain writer for DailyCoin who specializes in simplifying complex blockchain topics. He is experienced in crafting whitepapers, researching on-chain data, and advising emerging crypto projects, and uses his unconventional approach to learning and passion for knowledge to provide cornerstone educational content for readers of all levels. When not exploring the depths of DeFi, Finn can be found exploring his other passion, the great outdoors.