Komodo’s ‘ShibaDEX’ Lets Users Trade Shiba Inu for Tokens on Other Chains
‘ShibaDEX’ is said to be the first cross-chain exchange for the millions of Shiba Inu community members.
Blockchain protocol Komodo has launched a Shiba Inu-centric decentralized exchange (DEX) that allows users to trade Shiba Inu’s SHIB tokens for cryptos issued on different blockchains.
- Called ShibaDEX, the cross-chain exchange runs on AtomicDEX instead of a single network, such as Ethereum or Binance Smart Chain. This allows for the trading of Shiba Inu tokens for other assets on different networks.
- “ShibaDEX is a bridge that links together all the Shiba Inu community tokens and top meme coins,” Komodo Chief Technology Officer Kadan Stadelmann wrote in an email to CoinDesk. “It’s also a bridge that links Shiba Inu to blockchain communities outside of the Shiba Inu sphere and into the wider crypto metaverse.”
- DEXs rely on smart contracts and liquidity pools to let global users exchange cryptocurrencies with each other in a permissionless manner, unlike centralized exchanges.
- However, DEXs have certain inherent risks such as impermanent loss or rogue developers emptying liquidity pools in a “rug pull.”
- ShibaDEX uses atomic swaps to tackle such issues, it claims. When trading on ShibaDEX, users' funds are swapped via decentralized order books rather than adding or removing funds via a centralized liquidity pool.
- Users can store and trade SHIB (ERC-20 and BEP-20 versions), LEASH, BONE and more from the non-custodial ShibaDEX wallet. ShibaDEX users can trade SHIB with BTC, ETH, BNB, MATIC and many other assets natively across their respective blockchains.
- The launch comes months after Komodo announced the integration of several blockchain protocols to its AtomicDEX protocol in January, including Polygon, Avalanche and Harmony.
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