> For the complete documentation index, see [llms.txt](https://shibatoken.gitbook.io/shiba-swap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://shibatoken.gitbook.io/shiba-swap/before-we-begin-2.md).

# Before we begin, a little History

## A brief History of decentralised liquidity providing protocols

### Uniswap:

Uniswap **introduced the decentralized liquidity providing protocol**, which operates using the liquidity pools model. A liquidity provider provides or increases the liquidity of a pool.\
Liquidity pools consist of pairs of tokens, the liquidity provider provides equal amounts of both tokens on the creation of liquidity pools. Future liquidity providers do the same.\
[*The constant market maker algorithm*](https://github.com/runtimeverification/verified-smart-contracts/blob/uniswap/uniswap/x-y-k.pdf) makes sure that the product of the pair of tokens in the liquidity pool remains constant. Uniswap uses this algorithm on its liquidity pools. 

The **most popular base ERC20 tokens include DAI, USDC, WETH, and USDT**.\
The ratio of tokens present in the liquidity pools dictates the price of tokens.

### SushiSwap:

 SushiSwap project, a forked version of **Uniswap**, attempted to build on this.

 SushiSwap **gained an advantage over Uniswap by introducing protocol tokens, SUSHI**.

Uniswap provides Liquidity providers 0.30% of the fee as the reward.\
On the other hand, SushiSwap provides 0.25% of the fee as a reward and the remaining 0.05% converts into SUSHI tokens. 

The more a liquidity provider provided liquidity, the more tokens they earned. This enabled the Liquidity providers to cast governance votes. 

### **ShibaSwap:**

**Shibswap** project, part of the **Shiba Inu Ecosystem,** attempts to build on top of SushiSwap and it's protocol token model rewards and provide the distinct advantage that it incentivises liquidity by **introducing a multi-token reward system**. 

* It incentivises liquidity by using it's own protocol token called **BONE**
* It allows staking of **Shiba Inu Ecosystem** Tokens - **SHIB** and **LEASH** and incentives it with **BONE, SHIB** and **LEASH** token
* Introduces special pools in the farm which earn **quadruple or triple and double token rewards**
* Trading fees of trades involving 5 of the **most popular base ERC20 tokens** namely, **ETH, WBTC, DAI, UST, and USDC (**internally referred to as ***Top Coins*****)** is payed out as rewards in the respective tokens.

#### Staking a.k.a BURY pool with Quadruple/Triple rewards

1. **SHIB** staking pool receives 

   1. BONE
   2. ETH & 
   3. SHIB
   4. RYOSHI

   rewards

#### Staking a.k.a BURY pool with Double rewards

1. **LEASH** staking pool receives
   1. BONE
   2. LEASH

#### Farm a.k.a DIG pool with Triple rewards

1. **LEASH-ETH** pool
   1. BONE
   2. WBTC
   3. USDT
2. **BONE-ETH** pool
   1. BONE
   2. DAI
   3. USDC

#### Farm a.k.a DIG pool with double rewards 

1. **xFund-ETH** pool
   1. BONE
   2. xFund
2. **F9-ETH** pool
   1. BONE
   2. F9
3. **ZIG-ETH** pool
   1. BONE
   2. ZIG

`Sourced from` [**`Case Study: Uniswap (UNI Tokens Distribution)`**](https://xord.com/publications/case-study-uniswap-uni-tokens-distribution/)


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