The Shiba Inu community recently got a glimpse of the benefits of Canis, an upcoming lending protocol designed for Shibarium.
As the launch of Shibarium inches closer, developers are looking to build several projects on the Shiba Inu (SHIB) layer-2 network. One such project is Canis, an upcoming lending protocol designed by NFA Labs. The team behind the project recently unveiled the protocol’s benefits to the Shibarium ecosystem.
NFA Labs disclosed these benefits in a recent tweet, emphasizing the importance of Canis to Shibarium. The team stressed that the lending protocol would boost Shibarium by allowing users to invest in the network through leverage.
Canis, our lending protocol, is designed to accelerate the Shibarium ecosystem. It allows users to leverage their holdings to invest in projects on this L2, providing a boost to the entire ecosystem.
Canis lends its users an array of advantages in the dynamic world of… pic.twitter.com/GWggBxqdUF
— n=f(a) (@nfalabs) June 8, 2023
Canis seeks to achieve this by providing several services to users on Shibarium. These services include:
- Leveraging Holdings: Canis would allow users to leverage their holdings on Shibarium. This means they can use their existing assets as collateral to access additional funds or invest in projects within Shibarium. This allows users to maximize their assets and participate in the ecosystem’s growth.
- Ecosystem Boost: By leveraging these holdings, Canis will also help fuel the growth of Shibarium. Essentially, the more users participate in Canis and use their assets to invest in projects, the more the ecosystem benefits and expands.
- Yield Generation: Investors who hold NFA Labs’ NFAI token will get an opportunity to accrue yields on their holdings.
- Supply Reduction: Canis will play a role in reducing the circulating supply of Shiba Inu. Currently, there are no specific details on how this will be implemented.
- Marketplace Leader: By generating substantial revenues and providing safe and effective liquidity on Shibarium, Canis aims to establish itself as a leading lending protocol within the ecosystem.
These benefits would attract more investors to the Shibarium ecosystem, bolstering its adoption and overall growth. Furthermore, a surge in Shibarium adoption would result in more fees, leading to increased SHIB burns. Responding to the recent updates, Lucie, a Shiba Inu marketing team member, lauded NFA Labs for their efforts.
Woof woof @nfalabs
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) June 8, 2023
Project Canis and the Shiba Inu Ecosystem
Canis aims to become the primary lending protocol on Shibarium by allowing for the collateralization of numerous assets, including Ethereum, stablecoins, and Shiba Inu ecosystem tokens BONE, SHIB, and LEASH. The project will serve as a non-custodial protocol providing liquidity to enhance DeFi on Shibarium.
Notably, NFA Labs plans to deploy Canis during Phase 2 of its development plans. During the final test of NFA Labs’ Athena project in January, Shytoshi Kusama, Shiba Inu’s project lead, asked when the team plans to deploy on Shibarium. The answer was “soon.”