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The long-anticipated liquid staking protocol from K9 Finance will debut on the Shiba Inu ecosystem’s layer 2 scaling network, Shibarium, today.
The Shiba Inu ecosystem announced that the liquid staking derivative (LSD) will launch on Shibarium in partnership with K9 Finance. Per an X post, the integration will occur by noon on Wednesday.
Liquid staking features on the Shiba Inu ecosystem will disrupt the traditional staking procedure on the blockchain. Users can now stake their BONE and earn rewards while maximizing their staked tokens. With K9’s staking dApp, users can convert their staked BONE to knBONE for utility within the Shiba Inu ecosystem.
Per the official announcement, the liquid staking feature will bring two significant advantages to the Shiba Inu ecosystem. The integration will boost the total value locked (TVL) and transaction volume on the Shibarium network. Consequently, a surge in these metrics would increase the burn rate of SHIB.
K9’s Liquid Staking to Boost Shibarium
The LSD feature has been tipped to substantially boost Shibarium and the wider Shiba Inu ecosystem. According to K9’s pseudonymous founder, Buzz, TVL on the Shibarium network could increase by 50 times.
He claimed that TVL on Shibarium would hit $50 million if BONE stakers reached an average industrial standard. This would materialize if all users staking BONE do so on the K9 LSD dApp. Notably, the TVL on the layer 2 platform currently stands at $1.19 million, according to DeFiLlama.
The new staking procedure would also significantly boost transaction volume on Shibarium. Since users could get the exact amount of staked BONE, they could use the issued knBONE token for trading activities, increasing the volume on the network.
Furthermore, burn activities for SHIB would improve considerably. With increased trading activities, transaction fees would also grow. Hence, more SHIB tokens will be incinerated, reducing the token’s circulating supply.
Debut to Drive Price
Meanwhile, the liquid staking launch could drive the SHIB price as bullish sentiments around the asset swell. SHIB recently broke out of a falling wedge, with analysts tipping the token to surge 432% to $0.000081.
With buzzing sentiments around the K9 launch, the SHIB price could see higher prices. At press time, Shiba Inu is trading at $0.00001326, down less than 1% in the past 24 hours.