If you have unused SHIB tokens in your wallet, you can stake them to earn additional rewards. In this article, we will show you how to stake Shiba Inu and highlight the different platforms you can use to stake SHIB tokens.
Before continuing, it is important to understand that staking SHIB is not the same as staking native currencies of Proof-of-Stake blockchains (e.g. ETH on Ethereum). SHIB is a token issued on the Ethereum network and plays no role in the network consensus process. The term “Shiba Inu staking” is a catch-all term referring to the different ways you can earn rewards by temporarily locking up your SHIB tokens.
How to stake a Shiba Inu?
Below we will show you three methods you can use to bet Shiba Inu tokens and earn passive income on your SHIB holdings. You can stake Shiba Inu (SHIB) on ShibaSwap, decentralized exchanges, or centralized exchanges.
1. Stake SHIB tokens on ShibaSwap
The most obvious way to stake Shiba Inu is to use ShibaSwap, a DeFi (decentralized finance) platform developed by the team behind the Shiba Inu token to provide essential DeFi products to the Shiba Inu ecosystem.
In order to stake SHIB tokens in this manner, you will need to hold SHIB in your own Ethereum wallet (e.g. MetaMask or Coinbase Wallet) and not on a cryptocurrency exchange.
The SHIB staking functionality on ShibaSwap is implemented through a feature called “Bury”. If you stake on SHIB in this way, you will receive rewards in BONE, SHIB and ETH. After staking your SHIB, you will receive an equivalent amount of xSHIB tokens, which represent your position in the staking pool.
To get started, go to “Bury” section of the ShibaSwap siteconnect your MetaMask or Coinbase Wallet and select “Bury Shib”.
Next, choose the number of SHIB tokens you want to stake. It is important to know that staking rewards are distributed on a weekly basis. Additionally, only 33% of these rewards can be claimed immediately, while the remaining 67% are subject to a 6-month lock-in period before being able to access them.
2. Stake your Shiba Inu on crypto exchanges
Another way to use your SHIB holdings to earn additional SHIB rewards is to deposit them into various passive income products offered by cryptocurrency exchanges. In such products, the exchange will deploy your SHIB tokens in various DeFi opportunities or lend them to traders who use leverage.
An example of a major cryptocurrency exchange where you can earn yield from your SHIB tokens is Binance. This exchange offers several passive income opportunities to cryptocurrency investors, united under the umbrella of “Binance Earn”.
Currently, users have the option to deposit their SHIB tokens into the Simple Earn product on Binance to earn yield, and this includes both flex and locked products.
Flexible products offer a relatively lower return, but they give you the flexibility to withdraw your tokens and accumulated rewards at any time. On the other hand, locked products offer higher returns but require you to hold your deposited tokens for the entire duration if you want to earn rewards.
In addition to Simple Earn, you have the option to use your SHIB tokens to provide liquidity on Binance Liquid Swap and earn a portion of the transaction fees users pay when they swap through the product.
3. Use your SHIB tokens to provide liquidity on DEXs
Another way to earn rewards using your SHIB holdings is to provide liquidity to liquidity pools that contain SHIB. However, if you choose this method, you will also need to provide the other token that makes up the pool. For example, if you want to provide liquidity to the SHIB/ETH pool on Uniswap, you will need to provide both SHIB and ETH.
After selecting the amount of liquidity you wish to provide, you will be able to open your liquidity provider position and you will start earning a portion of the fees collected by the pool.
Be careful when providing liquidity on automated market makers (AMMs) such as Uniswap, as this carries some risks. Providing liquidity can potentially result in a less favorable outcome than simply holding the tokens in your wallet.
This phenomenon is caused by a concept known as “fleeting loss.” Generally speaking, it is important to note that the greater the volatility of the asset you are providing liquidity for, the more vulnerable you are to fleeting loss.
To learn more about how to provide liquidity on Uniswap, check out our article showing how to earn on Uniswap.
If you are not an advanced user, you will probably get better results putting SHIB on ShibaSwap than providing liquidity on Uniswap. However, it is still important to know all the options available in the market to earn rewards on your SHIB holdings.
As we’ve shown, you have three main options if you want to earn rewards on your SHIB holdings. You can stake SHIB on ShibaSwap, deposit your Shiba Inu into various passive income products offered by centralized cryptocurrency exchanges, or provide liquidity on decentralized exchanges such as Uniswap.
As you probably already know, the Shiba Inu saw huge success in 2021, but the price of the SHIB has since seen a steep decline. However, the project could still see a resurgence – learn more in our article where we discuss whether Shiba Inu is dead or not.
How to stake a Shiba Inu?
There are three main ways to bring a Shiba Inu into play:
- Use the ShibaSwap platform to stake your SHIB and earn SHIB, BONE and ETH rewards
- Deposit SHIB into passive income products offered by a centralized exchange such as Binance
- Use your SHIB tokens to provide liquidity on Uniswap or another decentralized exchange
Where can I bet on Shiba Inu?
The most obvious place you can bet on Shiba Inu is ShibaSwap, a decentralized finance platform created by the Shiba Inu team. However, you can also earn yield on your SHIB holdings on exchanges such as Binance, or use your SHIB tokens to provide liquidity on Uniswap or other decentralized exchanges.