How to Stake Shiba Inu in 2023?

If you have some SHIB tokens sitting idle in your wallet, you can stake them to earn some extra rewards. In this article, we’ll show you how to stake Shiba Inu and highlight the different platforms you can use to stake SHIB tokens.

Before we continue, it’s important to understand that staking SHIB is not the same as staking the native coins of Proof-of-Stake blockchains (for example ETH on Ethereum). SHIB is a token issued on the Ethereum network, and doesn’t play a role in the network’s consensus process. The term “Shiba Inu staking” is a catch-all term referring to various ways you can earn rewards by temporarily locking up your SHIB tokens.

How to stake Shiba Inu?

Below, we’ll show you three methods you can use to stake Shiba Inu tokens and earn passive income on your SHIB holdings. You can stake Shiba Inu (SHIB) on ShibaSwap, decentralized exchanges or centralized exchanges.

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 this way, you will need to hold SHIB in your own Ethereum wallet (for example MetaMask or Coinbase Wallet) and not on a cryptocurrency exchange.

The SHIB staking feature on ShibaSwap is implemented through a feature called “Bury”. If you stake SHIB in this way, you will receive rewards in BONE, SHIB and ETH. After you stake your SHIB, you will receive an equivalent amount of xSHIB tokens, which represent your position in the staking pool.

To get started, head over to the “Bury” section of the ShibaSwap website, connect your MetaMask or Coinbase Wallet, and select “Bury Shib”.

Then, choose the amount of SHIB tokens that you would like to stake. It’s important to know that staking rewards are distributed on a weekly basis. Also only 33% of these rewards are available for immediate claim, while the remaining 67% are subject to a 6-month locking period before they can be accessed.

Stake your Shiba Inu on crypto exchanges

Another way to use your SHIB holdings to earn additional SHIB rewards is to deposit them in various passive income products offered by cryptocurrency exchanges. In such products, the exchange will deploy your SHIB tokens into various DeFi opportunities or lend them out to traders who use leverage.

One example of a major cryptocurrency exchange where you can earn yield from your SHIB tokens is Binance. This exchange offers several passive income opportunities for cryptocurrency investors, united under the “Binance Earn” umbrella.

At the moment, users have the option to deposit their SHIB tokens into the Simple Earn product on Binance to earn yield, and this includes both flexible and locked products.

Flexible products provide a relatively lower yield, but they give you the flexibility to withdraw your tokens and the accrued rewards at any time. In contrast, locked products offer higher yields but require you to keep your tokens deposited for the entire duration if you want to earn any rewards.

Stake Shiba Inu on Binance

In addition to Simple Earn, you have the option of using your SHIB tokens to provide liquidity on Binance Liquid Swap and earn a portion of the transaction fees that users pay when making swaps through the product.

Use your SHIB tokens to provide liquidity on DEXes

Another way that you can earn rewards using your SHIB holdings is to provide liquidity to liquidity pools that contain SHIB. If you choose this method, however, 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’ll need to provide both SHIB and ETH.

After selecting how much liquidity you want 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.

Please be cautious when providing liquidity on Automated Market Makers (AMMs) such as Uniswap, as it carries some risks. Providing liquidity can potentially result in a less favorable outcome compared to simply holding the tokens in your wallet.

This phenomenon is caused by a concept known as “impermanent loss.” As a general guideline, it’s important to note that the greater the volatility of the asset for which you are providing liquidity, the more vulnerable you are to impermanent loss.

To learn more on how to provide liquidity on Uniswap, check out our article showing how to earn on Uniswap.

If you’re not an advanced user, you’ll probably achieve better results staking SHIB on ShibaSwap than providing liquidity on Uniswap. However, it’s still important to know all the options that are available on the market for earning rewards on your SHIB holdings.

The bottom line

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, Shiba Inu saw huge success in 2021 but the SHIB price has since seen quite a strong decline. However, the project could still make a resurgence — learn more in our article where we tackle the topic of whether Shiba Inu is dead or not.

FAQs

How to stake Shiba Inu?

There are three main ways to stake Shiba Inu:

• Use the ShibaSwap platform to stake your SHIB and earn SHIB, BONE and ETH rewards
• Deposit SHIB in passive income products offered by centralized exchange such as Binance
• Use your SHIB tokens to provide liquidity on Uniswap or another decentralized exchange

Where can I stake Shiba Inu?

The most obvious place where you can stake 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.

Source