Can ShibaDEX reignite interest in Shiba Inu?
Shiba Inu's first cross-chain DEX launches today with the promise of being better than other DEXes. Can it live up to the claims?
2022 is the year crypto got serious. Indeed, meme coins like Shiba Inu seem to have fallen by the wayside recently.
While the current market-wide pump has brought renewed optimism across the board, including with SHIB, which is among the top gainers over the last week, its price is still 68% below the $0.00008616 all-time high achieved in October 2021.
Nonetheless, in a bid to turn things around, ShibaDEX launches today with the promise of opening up the SHIB ecosystem. But is this enough to bring the investors back?
“Our motto is “a home for all Shibas”. ShibaDEX not only supports SHIB but also the vast, vibrant Shiba token ecosystem. Store and trade your BONE, LEASH, and more in one place.”
Who’s behind ShibaDEX?
Shiba Inu’s first cross-chain DEX is powered by AtomicDEX, which is built on top of the Komodo protocol. As a result, it claims to have the widest cross-chain support covering 99% of crypto assets.
In a press release received by CryptoSlate, ShibaDEX Co-Founder and Komodo CTO Kadan Stadelmann said ShibaDEX will link Shiba Inu to external blockchains for cross-community collaboration.
“ShibaDEX is a bridge that links together all the Shiba Inu community tokens and top meme coins. It’s also a bridge that links Shiba Inu to blockchain communities outside of the Shiba Inu sphere and into the wider crypto metaverse.“
What’s more, running on atomic swap technology, ShibaDEX offers several advantages over traditional Automated Market Maker (AMM) DEXes.
How will Shiba Inu holders benefit?
Traditional AMM DEXs, such as Uniswap, rely on centralized liquidity pools to fill orders. In turn, liquidity pools depend on liquidity providers lending their paired tokens. This process puts them at risk of impermanent loss (where the deposited tokens change price compared to the time they were deposited) and rug pulls.
Atomic swaps facilitate token exchange peer-to-peer (or wallet-to-wallet) with a smart contract overseeing the operation. This makes them more decentralized than an AMM system, and being peer-to-peer, there is no third party facilitating the exchange.
With AtomicDEX as the “engine,” ShibaDEX will benefit from all updates to the AtomicDEX protocol. Not only in terms of efficiency and security updates but also in the availability of tokens to swap as well.
From the off, Shiba Inu token holders can trade their SHIB with BTC, ETH, BNB, MATIC, and many others.
And with the AtomicDEX team continuously adding new tokens, for example, a mid-March update added 37 new assets, including GALA and PRCY, ShibaDEX users will have their pick of tokens.