Shiba Inu’s Shibarium Welcomes K9 Finance’s Liquid Staking

Shiba Inu’s ecosystem will launch this highly anticipated liquid staking protocol on its layer-2 network, Shibarium. The new feature will go live today, marking a significant milestone for the platform.

Launch Details

The Shiba Inu team confirmed that the liquid staking derivative (LSD) will integrate with Shibarium through a partnership with K9 Finance. According to an official post on X, this integration will occur by noon on Wednesday.

Tomorrow at Noon EDT the @K9finance liquid staking platform will be launching on @ShibariumNet!

Liquid staking for $BONE will help $SHIB by

➡️ increasing the total value locked (TVL) on Shibarium
➡️ increasing the transaction volume on Shibarium

Both of these will help the…
— Shib (@Shibtoken) September 17, 2024

The liquid staking feature aims to overhaul traditional staking on the Shiba Inu blockchain. Users can now stake their BONE tokens and earn rewards while retaining the flexibility to maximize their staked assets. K9 Finance’s staking dApp allows users to convert their staked BONE into knBONE, a token they can use across the Shiba Inu ecosystem.

The introduction of liquid staking offers two primary benefits for Shibarium. The liquid staking protocol from K9 Finance is set to boost both the total value locked (TVL) and transaction volumes on the Shibarium network. These changes will increase the burn rate of SHIB tokens, a key factor in reducing the token’s circulating supply.

Growth Projections

K9 Finance’s founder, Buzz, has expressed optimism about the LSD’s impact on Shibarium, predicting a 50-fold increase in TVL. He estimates that TVL could reach $50 million if BONE stakers adopt the K9 LSD dApp, a significant rise from the current $1.19 million reported by DeFiLlama.

In addition to boosting TVL, the new staking system is expected to drive transaction volume. Since users can obtain knBONE tokens equivalent to their staked BONE, they can engage in more trading activities, increasing overall network usage. As transaction volumes rise on Shibarium, more SHIB tokens will likely be burned due to higher transaction fees, further decreasing SHIB’s supply. This development could also positively affect SHIB’s price.

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Recently, SHIB has shown signs of a price breakout, with analysts predicting a potential surge of 432%, reaching $0.000081. As of now, SHIB is trading at $0.00001326, down slightly by less than 1% in the last 24 hours. The launch of liquid staking could further fuel bullish sentiments around SHIB’s price movement.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.