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K9 Finance explains how its liquid staking platform can bolster Shibarium’s Total Value Locked (TVL).
Shiba Inu lead developer Shytoshi Kusama has called attention to an analysis from Shibarium latest partner K9 Finance regarding how it plans to bolster the network’s TVL.
Notably, the analysis was provided by Buzz.Shib, K9 Finance DAO founder, in a recent X post. According to Buzz, the Shiba Inu community has been curious about how the K9 Finance project could impact Shibarium and its official gas token, Bone ShibaSwap (BONE).
👇👇👇👀🧐🫡 https://t.co/tSqU45VnSv
— Shytoshi Kusama™ (@ShytoshiKusama) March 1, 2024
BONE Stakers to Earn More APY on K9 Finance
First, Buzz gave a rough estimate illustrating that Shiba Inu community members have staked 35.5 million BONE tokens (worth $22 million at the time of the analysis) on ShibaSwap and Ethereum. According to Buzz, these BONE stakers earn less than 5% APY (annual percentage yield).
He pointed out that BONE stakers can earn more yield when they stake on K9 Finance, a Shibarium-based liquid staking and derivatives platform.
Besides earning more APY, BONE holders will also receive a liquid staking token, knBONE, representing the exact value of their stakes.
For instance, someone who stakes $200 worth of BONE on K9 will receive the liquid knBONE token, which is equivalent to $200.
Shibarium TVL Would Rise Significantly
Per Buzz’s analysis, if all users stake the total 35.5 million BONE on K9, it would represent $22 million of Shibarium’s total value locked (TVL).
Furthermore, he projected that if the Shiba Inu community eventually reaches the industry average of $50 million, Shibarium’s TVL, which stood at $1M during the analysis, would spike by 50X. Following the estimation, the DAO founder of K9 Finance emphasized that he is bullish on Shibarium.
So far, Shibarium’s TVL has surged over 30% since Buzz gave the estimation. The L2 network currently boasts a TVL of $1.32 million, according to data from DeFiLlama. In the meantime, K9 Finance is preparing for the launch of its native token, KNINE, slated for March 7.