K9 Finance DAO, a decentralized autonomous organization that operates as the main provider of liquid staking within the Shibarium network, has just entered the whitelist of the chain’s crypto validators.
Shibarium, created by the founder of Shina Inu, can now count on a very respectable partner when it comes to the context of seeking consensus.
Let’s see all the details below.
Summary
K9 Finance DAO becomes a crypto validator of the Shibarium network
K9 Finance DAO has just joined the Shibarium family, being included in the whitelist for the crypto validators of the chain.
We remind you that the organization already played a central role in the Shiba Inu ecosystem, acting as the main provider in the liquid staking derivatives sector (LSD) with the presence of the KNINE token.
The entry of K9 Finance as a validator of Shibarium significantly improves the utility of KNINE and economically incentivizes its holders: from now on, in fact, they earn network fees in the form of tokens BONE for each validated block.
K9 Finance represents one of the major pioneers DeFi in the entire crypto ecosystem: the new role as a validator will certainly help Shibarium to increase its security in the face of consensus-seeking, improving decentralization (the more validators there are, the more likely decisions are made impartially).
Furthermore, the efficiency of the chain and its ability to attract new capital will also improve, given the strong incentives on the liquid staking front.
Needless to say, his debut at Shiba’s home can only be a milestone for the entire community of the cryptographic memecoin, and serves as a strategic integration to fuel future developments of Shibarium and support the onboarding of new capital.
The SHIBA INU crypto, with a market capitalization of 14.7 billion dollars, if it continues to expand its popularity, could bring interest to its decentralized infrastructure, contributing at the same time to the scalability of Ethereum.
Some on-chain data from the layer-2 Shibarium
While Shibarium is experimenting with access under the guise of validators of new partners like K9 Finance, we observe how the layer-2 struggles to emerge in the midst of the competition in the crypto sector.
With a TVL of just 2.5 million dollars (data from DefilLama) and a total bridged value of 6.75 million dollars (Dune data), it appears quite evident how the Shiba Inu network plays a marginal role within the landscape of Ethereum blockchain scaling solutions.
With these values it ranks 36th in the ranking of the richest sub-chains of Ethereum, without presenting particular technological innovations, nor advantages to the user in terms of fees and transaction execution speed.
According to TX Research, almost all assets within Shibarium consist of the BONE token, with just 250 ETH following.
On-chain activities such as deposits and withdrawals are sporadic and not very compact, indicative of a chain lacking users and not widely used overall.
As DeFilLama shows, the only dapps built on Shibarium with a TVL greater than $100,000 are WoofSwap, Marswap, and ChewySwap.
All 3 are simple DEX and do not have more complex additional features typical of the DeFi world. This testifies to the low attractiveness by web3 developers, who prefer to build the future of decentralized finance elsewhere.
It is clear that the utility of Shinarium is rather limited, as there is no infrastructure capable of supporting the power of innovation and attracting a sufficient number of users to fuel a circular economy.
The hope is that SHIB can grow as a memecoin enough to attract new investments on Shibarium, in order to lift up the chain and make it compete with the most valid solutions in the Ethereum ecosystem.
