Shiba Inu's newly launched DEX, ShibaSwap, surpasses $1.5 billion in blocked funds
Shiba Inu's newly launched DEX, ShibaSwap, surpasses $1.5 billion in blocked funds By Hannah Perez

Excitement over the launch of ShibaSwap wreaked havoc

on

the Ethereum

network. Meanwhile, some experts warn that the platform doesn’t meet minimum security standards.

***

The new decentralized finance (DeFi) platform for the Shiba Inu puppy token, ShibaSwap

, is generating a lot of interest. Just two days after its launch, the decentralized exchange (DEX) has already surpassed USD $1.5 billion in total locked funds (TVL).

The growing popularity of Dogecoin (DOGE), which emerged as a joke but has conquered the pockets of big investors gaining notoriety in the ecosystem, has opened the doors to a whole universe of meme cryptocurrency projects. One of these is Shiba Inu (SHIB), a Dogecoinclonetoken based on Ethereum

, which has also quickly caught the attention of the community.

USD $1.5 billion in TVL

This week, the doggy-pictured project with humorous dynamics that was born a year ago launched its long-awaited DEX. Like other DeFi projects, the ShibaSwap platform offers different operations, from the exchange (swap) of tokens

, to a performance farming program that allows users to bet their tokens for rewards.

The Shiba Inu ecosystem consists of three doggy-themed tokens

: SHIB, LEASH and BONE. Platform users can deposit their SHIB and LEASH holdings as collateral to earn BONE tokens.

The launch of the platform showed great interest from users from day one. Within just 24 hours of its debut, ShibaSwap

registered a record $1 billion locked in (TVL), i.e., disposed as collateral funds.

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The development team behind Shiba Inu had announced the platform several months ago, though some had been skeptical of these plans, thinking the project would fizzle out as has happened with other meme tokens

.

Now, two days after the launch, the figure has not stopped growing and the project already exceeds USD $1.54 billion in funds available as collateral. This is indicated

by

data from the ShibaSwap

platform.

ShibaSwap Raises Ethereum Fees

Excitement ahead of the arrival of the new DEX led to a 14% increase in the price of SHIB, although the cryptocurrency has now fallen and is almost 80% below its all-time high price recorded in May this year. On the other hand, transaction fees the network Ethereum were also affected by the launch of ShibaSwap.

The large influx of users rushing to try out the ShibaSwap platform wreaked havoc on the network, increasing Gas rates. Ethereumby increasing Gas rates. The phenomenon was highlighted by cryptocurrency trader Joe McCann, who shared his observation on Twitter .

The gas rates of Ethereum had been at near record lows since the Berlin update, however they increased right after the DEX launch. According to data from Etherscan ShibaSwap’ s contract is the third highest gas-consuming address, and the second highest tariff-generating contract in the last few hours. The only other contract to have generated more than Ethereum during the last 24 hours is Uniswap v2.

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It is not the first time that the euphoria of the token clone of Dogecoin clone token has wreaked havoc on the network Ethereum. During early May, when the SHIB token was experiencing record pricing and registering new addresses at a rapid pace, a report confirmed that the project was <a href=”https://www.diariobitcoin.com/tecnologia/tokens/shiba-inu-esta-causando-estragos-en-ethereum-fees-surpass-usd-300/” target=”_blank” rel=”noopener”>related to the increase in network fees, which reached as high as USD $300.

In fact, at that time, the founder of Ethereum Vitalik Buterin decided to divest 50% of SHIB’s total supply to alleviate network fees. Buterin, who had received a million-dollar sum of SHIB from the developers of the project, donated part of the funds to Covid-19 aid group in India and burned the other part.

Attention! Not yet audited

At the time, the actions of the leader of Ethereum caused great controversy among the Shiba Inu fan community, especially after causing the price of the asset to drop by more than 40%.

In the wake of the event, many thought that the project would fade away, as has happened with many other meme currencies in recent months. However, Shiba Inu continues to gain ground and still seems to be considered one of the favorites in the meme coin rankings.

It’s worth noting that amid the popularity of the token and the euphoria over the launch of the new platform, some experts have warned about the security risks of ShibaSwap. Yesterday, platform evaluator DeFi Safety published a report on ShibaSwap, in which it rates the protocol with only 3% security, well below the 70% level it considers prudent.

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As reported by Cointelegraph, the experts called the score “a devastating failure“. ShibaSwap failed all but two of the 22 review criteria, and the protocol scored 30% for lack of clarity of information provided in its technical document.

Also the developer of SolidityJoseph Schiarizzi published an article warning that ShibaSwap’ s share contract had been under the control of a single management for most of its first day of operation. Currently, the platform is undergoing an audit by Certik, which has worked with Crypto.com Ontology and Neoand others.

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Fuins: ShibaSwap, Cointelegraph, Cointelegraph, archive

Version by Hannah Estefania Perez / DiarioBitcoin

Image by Unsplash