You’ve made it to Shibarium, wallet ready and gas topped up — but now the real work begins. With the Shiba Inu DeFi toolkit growing by the week, users are handed a stack of powerful tools: bridges, swaps, liquidity pools, and the aptly named ShibTorch. But one wrong move, one skipped step, and you could end up stuck, exposed, or out of gas.
Got questions about using the Bridge, Swap, new Liquidity Pools, Rewards, or ShibTorch? Here are answers to some common queries about interacting with Shiba Inu’s core DeFi Toolkit, especially on Shibarium.
Q: Why do I always have to “Approve” a token before I can swap or stake it?
A: This is a standard security step in almost all DeFi applications. The “Approve” transaction grants the specific smart contract (like ShibaSwap’s router or staking contract) permission to interact with only that specific token in your wallet, up to a certain amount (often unlimited for convenience, though you can sometimes set limits). It’s a one-time action per token, per contract, per wallet, ensuring the contract can’t access tokens you haven’t explicitly allowed it to.
Q: What are gas fees on Shibarium, and why do I need BONE?
A: Gas fees are small payments required to process transactions on the blockchain network. On Shibarium (Layer 2), these fees are paid using the BONE token. You must have some BONE in your Shibarium wallet to cover the cost of any action like swapping, approving, staking, bridging, etc.
Q: What’s the main reason to use the Token Bridge?
A: The bridge connects Ethereum (Layer 1) and Shibarium (Layer 2). You use it primarily to move your assets (like SHIB, LEASH, BONE, ETH, stablecoins) onto Shibarium to benefit from its generally lower gas fees and faster transaction speeds when using Shiba Inu’s DeFi tools. You also use it to transfer assets back to Ethereum.
Q: How long does bridging take?
A: Depositing tokens from Ethereum to Shibarium is usually quite fast once your Ethereum transaction confirms. Withdrawing tokens back to Ethereum can take longer. PoS tokens are generally faster, but BONE withdrawals using the Plasma bridge have a built-in security delay (a challenge period) that can last several days. Always check the interface for estimated times.
Q: Can I bridge any token?
A: No, the official bridge supports only a specific list of curated tokens. This includes core Shiba Inu ecosystem tokens and other widely used assets like WETH, WBTC, USDC, USDT, etc. Check the official list before attempting to bridge a token.
Q: What are the key things to check before confirming a Swap?
A: Review the “Minimum Received” amount (your protection against bad slippage), the “Price Impact” (how much your trade might move the price, higher impact is worse for you), and the “Liquidity Provider Fee” (a small fee for LPs).
Q: What does ‘Slippage Tolerance’ mean in Advanced Settings?
A: It’s the maximum percentage price change you’re willing to accept between submitting and confirming your swap. Too low, and your trade might fail in volatile markets. Too high, and you might get a worse price than expected. The default (e.g., 0.5%) is usually suitable for most trades.
Q: Should I enable or disable ‘Multihop’?
A: Leaving Multihop enabled (the default) is generally recommended. It allows the swap router to find the best possible price by potentially trading through multiple intermediate token pools if a direct route isn’t optimal or liquid enough. Disabling it restricts trades to direct pairs only, which can limit options or lead to worse rates.
Q: How do I add a token to the Swap list if I don’t see it?
A: You can usually paste the token’s official contract address into the token selection search bar to import it. Crucially, always verify you have the correct, official contract address from a trusted source (like the project’s official site or Shibariumscan) to avoid scams.
Q: What’s the basic idea behind providing liquidity?
A: You deposit a pair of tokens (equal value) into a pool. This liquidity allows others to swap between those two tokens. You earn a portion of the trading fees generated by swaps in that pool as a reward.
Q: How is Concentrated Liquidity (V2 Pools) different?
A: Instead of providing liquidity across all prices (like V1), CL lets you choose a specific price range. Your funds only earn fees when the market price is within your chosen range. This can make your capital much more efficient at earning fees.
Q: What’s the main risk with Concentrated Liquidity?
A: Impermanent Loss (IL). While IL exists in all standard LPs, CL significantly increases your exposure if the price moves outside your chosen range. Your position stops earning fees, and the value difference compared to just holding the assets can grow much faster. It requires active management of your price range.
Q: Do I still get an LP token with Concentrated Liquidity?
A: Usually, yes, but your specific position (with its unique price range and fee tier) is often represented by an NFT, rather than a standard fungible LP token like in V1 pools.
Q: I staked SHIB using ‘Bury’. Where do my rewards go?
A: Rewards earned from Burying SHIB, LEASH, or BONE are typically paid out in BONE. They accumulate over time and can be claimed through the ShibaSwap interface, often on the ‘Woof’ page or sometimes directly within the Bury section.
Q: What do I stake on the ‘Woof’ page?
A: The Woof page is primarily for staking your Liquidity Pool (LP) tokens (SSLPs from V1 pools or potentially the NFTs representing V2 positions). Staking these LP tokens earns you additional rewards on top of the trading fees your liquidity generates.
Q: Is Burying less risky than LPing/Woofing?
A: Generally, yes. Burying involves staking a single asset and doesn’t expose you directly to impermanent loss like providing liquidity does. LPing (and subsequently Woofing the LP token) involves IL risk but potentially higher overall rewards (fees + Woof rewards).
Q: What token actually gets burned by ShibTorch?
A: SHIB is the token that is ultimately burned (removed from circulation).
Q: Where does the value to buy the SHIB come from?
A: It comes from BONE collected automatically from the base fees of all transactions on the Shibarium network. This collected BONE is then used to buy SHIB on Ethereum before burning.
Q: If I initiate the burn, does it use my BONE?
A: No. Initiating the burn only triggers the use of the BONE already collected in the public contract from network fees. It does not take BONE from your personal wallet, although you will need to pay a small gas fee in BONE from your wallet to start the initiation transaction.
Q: Can anyone really start the burn?
A: Yes, provided the amount of accumulated BONE in the ShibTorch contract has reached the predetermined minimum threshold displayed on the dashboard.
Disclaimer: DeFi involves significant risks, including smart contract vulnerabilities, impermanent loss, and market volatility. This FAQ is for informational purposes only and not financial advice. Always do your own research (DYOR) before interacting with any part of the DeFi Toolkit.
