Shiba Inu’s SHIB Transforms DeFi with Cross-Chain Utility Boost

SHIB, the native token of the Shiba Inu ecosystem, has made history by becoming the first meme coin integrated into a major cross-chain decentralized finance (DeFi) platform. Folks Finance, a DeFi lending protocol built on the Chainlink Cross-Chain Interoperability Protocol (CCIP), announced on Tuesday that it has added support for SHIB in its lending markets. The move marks a significant milestone for meme coins, as it enables users to deposit SHIB to earn yields or use it as collateral to borrow other assets [1].

According to the announcement, SHIB is now accessible across multiple blockchains including Optimism, Polygon, Avalanche, and Arbitrum, among others. This expansion was made possible by Shiba Inu’s earlier collaboration with Chainlink, which transformed SHIB into a cross-chain token. Folks Finance, which already supports most of these blockchains, emphasized that users can now seamlessly borrow and lend SHIB across these networks [1].

Folks Finance has further enhanced the utility of SHIB by leveraging Chainlink’s CCIP to consolidate liquidity. Previously, SHIB’s liquidity was fragmented across various networks, but the integration allows for a unified pool of SHIB liquidity accessible across all supported blockchains. This is expected to improve the efficiency of lending and borrowing activities while boosting overall market depth [1].

The platform is also offering incentives to encourage SHIB adoption. Currently, depositors can earn an annual percentage yield (APY) of 10.93%. As of the latest data, approximately $25,000 worth of SHIB has been supplied as liquidity, with about $2,000 used as collateral for other asset borrowings. These figures highlight the growing interest in SHIB within the DeFi space [1].

This development follows a broader trend of increasing institutional and retail adoption of SHIB. Recently, Valour, a leading ETF issuer, launched a SEK-denominated Shiba Inu-focused exchange-traded product in four European markets, including Denmark, Sweden, Norway, and Finland. The expansion of SHIB into cross-chain DeFi ecosystems, coupled with new financial products, signals a growing recognition of the token’s utility beyond its meme origins [1].

While SHIB’s recent price has experienced a correction, the increased adoption and integration into DeFi platforms like Folks Finance could provide a floor for its value and usage. The Shiba Inu ecosystem has emphasized that these developments are part of a broader strategy to enhance the token’s utility and real-world applications, particularly within the DeFi sector [1].

Source: [1] Chainlink Folks Finance Adopts Shiba Inu in Cross-Chain Lending Markets (https://thecryptobasic.com/2025/09/03/chainlink-folks-finance-adopts-shiba-inu-in-cross-chain-lending-markets/)