full image - Repost: Shibarium Theory - A Must Read (from Reddit.com, Shibarium Theory - A Must Read)
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This is a long read but well worth the time, in my opinion. A comment was made on one of our posts about Shibarium and whether it would be run on Polygon in an effort to reduce fees. A fellow member pointed out that Shytoshi had once commented that it wouldn't be run on polygon but a polygon like network inferring that the devs were attempting to develop their own layer 2 (L2) protocol. I've had some theories for a while and this really got me thinking... how does a new L2 for in with ShibaSwap tokenomics... and here's my theory. Please forgive me if I ramble at all, it's 2:30am here and I've had 5 hours of sleep in 2 days. Comment below and let me know what y'all think... am I onto something here or am I way out in left field on this? I remember reading that Shytoshi said Shibarium would be run on a polygon like protocol. I think it would be great if the devs in fact created their own L2 protocol, but my reservation is why recreate the wheel to get the same outcome? So that got me thinking what would I do if I was the devs to set ShibaSwap ahead of the competition. I dabble in programming just so I can try and understand some of this stuff, and I think I know the answer. If I'm way off please tell me, I'm not an expert by any means. Anyways, when we talk about defi protocols, the two that really compete are uniswap V3 and Sushiswap using polygon. Both swaps are great in their own right but both have fundamental issues. V3 revolutionized the way liquidity pools operated. Traditional pools spread out your liquidity pairs from 0 to infinity, even though a significant portion of that range will never be used. V3 allowed for concentrated efficiency where a liquidity provider could concentrate their capital into specific price points reducing investor exposure to impermanent loss and increasing fees earned by over 500% in some pools (aka an investor could earn 5x the fees than a traditional liquidity pool). The downside was that gas fees are still ridiculously high on V3 because it's still using the Ethereum network. Then you have Sushiswap who built out a L2 through polygon reducing fees and increasing speed of transactions. It also allowed users to use the "matic bridge" to swap tokens between ERC20 and other networks, by a process of minting and burning tokens going back and forth. The beauty is it allowed users to access other cross chain tokens through a single interface, and best of all users paid for gas fees in their native Matic coin instead of Eth. Sushiswap also allowed users to access Kashi Lending whereby users could trade on leverage or margin, for those investors who wanted to take big swings in crypto. This also had the benefit of allowing liquidity providers to put up their tokens for margin trading, earning good returns and no exposure to impermanent loss since it was only 1 token investments. Sushiswap also developed a token vault known as BentoBox that allowed for margin trading in 1 transaction hash versus other margin trading platforms that required 3 transaction hashes, saving huge amounts on gas fees and increasing transaction speeds. I guess what I'm getting at is Shibarium needs to be if V3 Uniswap and Sushiswap protocols had a baby. Shibarium would allow for concentrated capital liquidity pools, the ability to switch tokens across different blockchains using SHIB as gas (only utility I can see for it... change my mind), and allow users access to margin and leveraged trading, while simultaneously allowing additional revenue streams for liquidity providers and creating token vaults. If Shibarium managed to incorporate the best of both swaps, it could begin to compete for heavy volume which would bring back the billion dollar TVL numbers. But if that weren't enough, if the devs could incorporate their own algorithmic stable coin Shi into the mix as a daily transactional token, whereby users could buy and sell with it, with minimal fees, and giving sellers the security of a stable coin, and the speed of visa, it would truly begin to revolutionize crypto. IF the devs can pull this off it would be a game changer in crypto defi platforms. SHIB would finally have a purpose, Shi would become a global currency, BONE would be highly coveted by whales who wanted governance over the future decisions of the swap, and LEASH would be the value store to bring in institutional investors, similar to what Bitcoin is. Uniswap earns $2-3M in fees per day, and Sushiswap earns $1.2M in fees per day (as of January), there's no reason ShibaSwap wouldn't be able to easily pull in $3-5M in fees through its platform if it was able to implement this plan. It's an ambitious goal but one that I think makes the most amount of sense and maybe why the devs are playing things pretty close to the vest as the saying goes because they don't want the other swaps to pivot before they release Shibarium. Let's hear your thoughts. Anyone else have a theory on what type of protocol Shibarium will run on or benefits they should implement? Also, if you know of other users who haven't been invited here, please help me continue to grow this page by sending them a message recommending they come check our page out. This article and others like it, are only going to have effect if we can get exposure to a larger audience. Personally I think this theory could give hope to so many who have begun losing hope in SHIB and the entire ecosystem....I know it gives me hope and in my mind it helps me begin to put the pieces of the puzzle together into a congruent picture. And it doesn't hurt that I believe if this happens, we're all going to be very well off having gotten in very early.
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