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

Generated by AI AgentCoin World
Wednesday, Sep 3, 2025 9:40 am ET1min read
Aime RobotAime Summary

- Shiba Inu's SHIB becomes first meme coin integrated into Folks Finance's cross-chain DeFi platform via Chainlink CCIP, enabling lending/borrowing across multiple blockchains.

- SHIB's cross-chain liquidity is now consolidated across Optimism, Polygon, and other networks, improving DeFi efficiency while offering 10.93% APY incentives for liquidity providers.

- Institutional adoption grows with Valour's SHIB-focused ETF in Europe, signaling expanding recognition of the token's utility beyond meme origins through DeFi integration.

- Strategic cross-chain expansion and financial product diversification aim to strengthen SHIB's real-world applications and provide long-term value stability in DeFi ecosystems.

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/)