The Shiba Inu decentralized exchange (DEX) ShibaSwap is on the verge of launching significant updates with the introduction of liquid staking, which promises to transform how users interact with the platform. Over the weekend, Shibarium Updates, an X channel closely monitoring developments within the Shiba Inu ecosystem, confirmed this game-changing feature through its rebranded website. "Liquid staking is coming to ShibaSwap," the channel remarked, signaling the DEX's commitment to advancing decentralized finance (DeFi).
So, what does this mean for users? Liquid staking will allow them to stake their tokens on ShibaSwap without sacrificing liquidity. Essentially, users can earn rewards on their staked assets, retaining access to their locked assets simultaneously. When users stake their tokens using this new feature, they will receive liquid tokens representing their staked assets. For example, those staking TREAT tokens will receive liquid Treat tokens (veTREAT), which will not only represent their stakes but also grant governance powers to influence the allocation of rewards for liquidity mining.
The updates don’t stop there. Alongside liquid staking, ShibaSwap is poised to introduce a Karma Point system. This initiative will reward users for participating in various activities—such as transferring Shiba Inu ecosystem tokens (SHIB, BONE, LEASH, and TREAT) and providing liquidity on the DEX. The Karma points will significantly boost their voting power within the Shib Doggy DAO, slated for launch before the end of next year. Although the DAO isn’t live yet, it promises to empower token holders to vote on key governance initiatives within the Shiba Inu ecosystem.
While these developments are exciting, it’s worth noting there’s no official timeline for the launch of liquid staking on ShibaSwap just yet. Users eager to stake their tokens with liquid staking can currently turn to K9 Finance, the official liquid staking partner of the Shiba Inu ecosystem. Launched on September 18, K9 Finance has already registered 248 stakers, who have locked up over 2.42 million BONE tokens. The platform's liquid staking token, knBONE, has reached a market cap of approximately $1.45 million, pointing to significant investor interest.
ShibaSwap's upgrades include major enhancements since its inception on Ethereum back in July 2021. The exchange transitioned to the Shibarium network earlier this year, becoming multi-chain and allowing the swapping of tokens between Ethereum and Shibarium networks effectively. This migration also aids token burns of SHIB. The launch of ShibaSwap 2.0 introduced users to seamless migration and centralized liquidity pools, optimizing user experience.
On another front, Solana is experiencing its own wave of transformation with liquid staking led by the innovative platform Xandeum. Recently, Xandeum concluded its successful six-week staking program, distributing 205 million XAND tokens as rewards, with 68% of its circulating supply staked. Solana's liquid staking initiative is gaining traction, largely driven by competitive annual percentage yields (APY) of up to 16%.
Liquid staking allows users to earn staking rewards without losing liquidity—an attractive option as the DeFi ecosystem evolves. Although Ethereum has seen exponential growth within the liquid staking sector, Solana has begun to catch up with promising specifications, particularly through Xandeum’s staking rewards structure combining standard rewards with advanced incentives, which include miner extractable value (MEV) rewards and block rewards. Their success demonstrates solid demand for high-yield staking options.
The $7 million worth of SOL staked during Xandeum's initiative showcases the depth of interest and market need for reliable and lucrative staking options. Xandeum stands out for its distribution strategy, ensuring stakers can receive maximum value from MEV rewards, thereby enhancing Total Value Locked (TVL). All fees accrued during the staking initiative are redirected to the Xandeum DAO treasury, where XAND token holders maintain governance rights over the platform's future developments.
Looking to the future, Xandeum plans to launch its scalable storage layer, integrating directly with Solana RPC nodes, which could create new revenue streams by sharing application-usage fees. This move aims to satisfy Solana's growing need for decentralized storage, enabling the development of heretofore unexploited dApps, particularly those focused on data and AI applications.
By addressing the multifaceted needs of the Solana ecosystem, Xandeum is set to become instrumental, proving its role as both significant for stakers and developers alike. Its evolution from staking to governance and beyond solidifies Xandeum’s position as a pivotal player providing necessary infrastructure and resources to help Solana compete against other multi-purpose Layer 1 networks.
Overall, both ShibaSwap and Xandeum's liquid staking updates epitomize the progress and innovation occurring within the crypto ecosystem. With features such as liquid staking and Karma Points, ShibaSwap is working diligently to empower community members and fuel engagement within the DeFi space. Meanwhile, Solana's Xandeum is reshaping staking success, paving the way for future expansions and applications on the blockchain.