Shiba Inu has identified the popular liquid staking derivative platform K9 Finance DAO as the key to boosting Shibarium’s economic activities.
This was disclosed in an X post yesterday, emphasizing that K9 Finance’s role as Shibarium’s official liquid staking partner would increase the network’s total value locked (TVL) and trading volume.
Woof! @K9finance is the official Liquid Staking Derivative (LSD) for #Shibarium & is key to boosting the network's total Value Locked $BONE & trading volume! 🔐 https://t.co/BJYuGdnW6w
— Shib (@Shibtoken) April 23, 2024
Can K9 Replicate Lido Finance Feat?
Notably, the Shiba Inu team believes that K9 Finance can replicate the feat achieved by Lido Finance on the Ethereum blockchain. For the uninitiated, Lido Finance is the largest liquid staking platform on the Ethereum network, with a TVL of $30.46 billion, according to data from DeFiLlama.
In a post yesterday, K9 Finance claimed that when Lido launched on Ethereum, it boosted the network’s TVL by a whopping 800%, or approximately $105 billion.
Interestingly, K9 revealed that it is following Lido’s model within the Shibarium network. It aims to allow KNINE holders to maintain liquidity on their staked tokens on its upcoming platform.
Accordingly, KNINE holders would benefit from this initiative following the increase in Shibarium’s TVL.
K9 Aims to Increase Staking Participation on Shibarium
Since its inception, K9 Finance has sought to enhance staking participation within the Shibarium ecosystem.
Once K9 launches on Shibarium, users who stake their BONE tokens will receive a liquidity token dubbed knBONE. Interestingly, users can trade knBONE with other tokens on the Shibarium network, potentially bolstering Shibarium’s TVL and trading volume.
At press time, Shibarium’s TVL stands at $2.62 million, with decentralized exchange WoofSwap ranking as the top protocol on the network. Last month, Buzz, the pseudonymous co-founder of K9 Finance, provided a rough estimate of how the project will boost Shibarium’s TVL.
According to Buzz, Shibarium’s TVL, which stood at $1M at the time, could surge by 50x if K9 reaches the industry average of $50 million.
K9 Upcoming Launch
Meanwhile, K9 recently revealed the roadmap for the upcoming launch of its decentralized application (dApp). The launch will occur in three phases, starting with the deployment of the beta version, Hesper, by the end of Q2 2024.
Afterward, K9 Finance will debut the second phase, Boro, by Q3 2024 with the release of its staking dApp on Shibarium mainnet.
The last phase of the K9 dApp launch, tagged the Caninae stage, would occur in Q4. Here, the team behind the project would offer a complete liquid staking product on Shiba Inu’s L2 blockchain.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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