What happened?
Shiba Inu became the first meme coin to support cross-chain lending, thanks to Chainlink’s interoperability protocol. This development was made possible by Folks Finance, a lending protocol built on Algorand that added SHIB to its list of supported assets. This enables users to lend SHIB tokens through its platform, offering a passive income source and increasing the token’s appeal to investors.
Who does this affect?
This primarily affects SHIB token holders and potential investors. Lending Shiba Inu tokens currently produces a 9.13% annual yield, presenting a lucrative opportunity for those interested in generating passive income. It also affects Folks Finance, which now has an added asset to its portfolio, and Chainlink, whose interoperability protocol was key to this development.
Why does this matter?
The implementation of cross-chain lending for SHIB could potentially increase its market value. The utility expansion across ecosystems could strengthen SHIB’s standing and attractiveness to investors. Moreover, this demonstrates the growing capabilities of meme coins, contributing to their legitimacy in the crypto market.