Chainlink CCIP Powers Shiba Inu Cross Chain Lending on Folks Finance

Shiba Inu (SHIB) expanded into cross-chain lending by integrating with Folks Finance, a decentralized finance (DeFi) protocol. This marks the first time a memecoin has been listed for lending and borrowing on a cross-chain platform.

The feature is powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which allows assets and messages to move securely across multiple blockchains. With this update, SHIB holders can now lend their tokens, earn yield, or use them as collateral across different networks instead of being locked to one chain.

SHIB on Folks Finance

Shiba Inu’s official X account confirmed the addition to Folks Finance, which is known for offering cross-chain lending markets. The listing lets users:

• Deposit SHIB and earn interest
• Borrow other assets using SHIB as collateral
• Move liquidity between blockchains without managing separate wallets

Traditionally, lending markets in DeFi were limited to single-chain protocols, meaning that users had to hold and manage balances on individual blockchains. The cross-chain model solves this limitation by unifying liquidity.

Folks Finance described SHIB as “the first memecoin with cross-chain lending markets,” signaling broader adoption of interoperability standards in DeFi.

How Chainlink Powers the Integration

The core of this development is Chainlink CCIP. The protocol is designed to send both tokens and data across chains in a secure way. It addresses two common problems in DeFi: liquidity fragmentation and network isolation.

By using CCIP, SHIB can now interact with ecosystems including Ethereum, Arbitrum, and Base. This expands its use cases and provides token holders with more financial options.

Shiba Inu’s developer, Kaal Dhairya, explained on X that while SHIB’s foundation will always remain on Ethereum, its new cross-chain features are built and audited in collaboration with the Chainlink team. He added that developers now have the option to deploy Shiba Inu on other chains such as Base or Solana while still keeping Ethereum as the settlement layer.

Engagements Between Shiba Inu and Chainlink

This is not Shiba Inu’s first partnership with Chainlink. In 2023, ecosystem tokens like SHIB, Doge Killer (LEASH), and Bone ShibaSwap (BONE) adopted the CCIP standard. These tokens became accessible across twelve blockchains.

The integration now goes a step further by enabling practical functions like lending and borrowing, moving Shiba Inu beyond simple token transfers.

Another key detail is that cross-chain transfers of SHIB via CCIP trigger token burns. Every move reduces SHIB’s circulating supply on Ethereum. Dhairya confirmed that this burn model also extends to BONE, LEASH, and the ecosystem’s upcoming token TREAT.

Unified Pools and Incentives

Folks Finance confirmed that its platform uses unified pools for deposits and borrowing. This setup reduces the complexity of tracking balances across different blockchains. Users only interact with one pool, even if the liquidity is sourced from multiple chains.

The protocol also provides incentives for depositors to encourage participation. These incentives add another reason for SHIB holders to explore lending and borrowing.

Shiba Inu Burn Rates Increase

Alongside the lending update, Shibburn tracker reported that 158.7 million SHIB were destroyed in the past week, a rise of over 1,047% compared to the previous week. In the last 24 hours alone, 29.3 million tokens were burned.

Despite a price drop of over 4.5% in the same period, the increase in burn activity reflects strong community engagement and interest in reducing supply.

Token burns have long been part of Shiba Inu’s tokenomics. The CCIP-enabled cross-chain burn model makes the process more scalable and automatic, ensuring that liquidity activity contributes to supply reduction.

Wider Use of Chainlink Technology

The Shiba Inu update comes as other projects also expand their use of Chainlink’s infrastructure.

• Misyon Bank, a Turkish neobank, is using Chainlink’s Runtime Environment (CRE) to publish its MTLK stablecoin price on Avalanche, verify reserves via Proof of Reserve, and manage real-time workflows.
• Dexlab, a Solana-based platform, has adopted Chainlink’s Cross-Chain Token (CCT) standard to make its token XLAB transferable across Solana and BNB Chain.

These developments show growing adoption of Chainlink’s interoperability tools across various sectors, from retail-friendly tokens like SHIB to institutional products like stablecoins.

Chainlink Reserve and Enterprise Demand

Chainlink recently launched the Chainlink Reserve, which already holds 237,014 LINK, including over 43,937 LINK added on September 4. The reserve accumulates LINK from both enterprise adoption and on-chain usage fees.

This system is powered by Payment Abstraction, which allows users to pay for Chainlink services in any token. The payments are then converted into LINK, often using Uniswap V3 for efficiency.

Enterprises such as Mastercard and JPMorgan are already using Chainlink services for payments and tokenization. Their adoption contributes to the long-term sustainability of the network and indirectly supports projects like Shiba Inu that rely on CCIP.

What This Means for Shiba Inu

The integration with Folks Finance positions Shiba Inu as the first memecoin to support cross-chain lending. It also builds on SHIB’s existing collaborations with Chainlink by introducing functional financial interactions, not just token transfers.

By combining lending markets, unified pools, and automatic token burns, SHIB moves toward broader utility in DeFi. The approach strengthens liquidity, reduces supply, and creates more options for both holders and developers.

Resources:

1. Chainlink X platform: https://x.com/chainlink

2. Chainlink LINK reserve data: https://metrics.chain.link/reserve

3. Shiba Inu X platform: https://x.com/Shibtoken

4. Chainlink Strategic LINK Reserve Announcement: https://blog.chain.link/chainlink-reserve-strategic-link-reserve/