Shrug Whitepaper

1. Project Overview

Shrug is a decentralized token project deployed on the Shibarium blockchain, a layer-2 solution for the Shiba Inu ecosystem. Integrated with the WoofSwap decentralized exchange, Shrug introduces an innovative mechanism for purchasing whitelisted memecoins and rewarding users with Shrug tokens (symbol: SHRUG), an ERC20 token. Users can pay a fixed amount of BONE to acquire supported memecoins and receive SHRUG tokens as an incentive. Shrug aims to foster engagement within the Shibarium memecoin ecosystem while ensuring security, transparency, and decentralization.

Core Functionality: Users pay 0.01 BONE to purchase whitelisted memecoins via WoofSwap and receive 1,000,000 SHRUG tokens as a reward.

2. Tokenomics

The Shrug token (SHRUG) is the core asset of the project, governed by the following tokenomics:

Token Name: Shrug
Symbol: SHRUG
Decimals: 18
Maximum Supply: 1,000,000,000,000,000 SHRUG
Reward Mechanism: Each valid purchase yields 1,000,000 SHRUG, minted until the maximum supply is reached.
Distribution: Tokens are minted and distributed to users upon successful memecoin purchases, with no pre-minted supply.

The contract ensures that the total supply never exceeds the maximum limit, maintaining scarcity and fairness in distribution.

3. Core Mechanisms

3.1 Purchase Mechanism

Users participate in the Shrug ecosystem by calling the buy function, sending exactly 0.01 BONE to purchase a whitelisted memecoin. The process includes:

Input Validation: The contract verifies the sent amount (0.01 BONE), ensures the target token is whitelisted, and confirms a valid WoofSwap pair exists.
Swap Execution: The contract interacts with the WoofSwap router (0x96b16aBD53Bfd765F4CD118590C1d0be8B57DE24) to swap BONE for the target memecoin, applying a 95% slippage tolerance and a 300-second deadline extension.
Reward Distribution: Upon successful swap, the user receives 1,000,000 SHRUG tokens, provided the total supply does not exceed the maximum limit.

The purchase process is secured by the nonReentrant modifier to prevent reentrancy attacks.

3.2 Memecoin Whitelisting

The contract owner manages the memecoin whitelist using the addMemecoins and removeMemecoin functions. Currently, the following memecoins are supported:

WOOF, DAMN, PIKA, FEED, WOW, SHIPA, LUISA, CHIKA, SHIBS, NONE
DUDU, NEKO, SHIB, LEASH, TREAT, KNINE, PNUTSHIB, CANNED, USAGI, SNOW

Only whitelisted memecoins with valid WoofSwap pairs are eligible for purchase, ensuring ecosystem quality and reliability.

4. Security Features

Shrug prioritizes security through the following measures:

Slippage Protection: A 95% slippage tolerance is enforced during swaps to mitigate price volatility risks.
Input Validation: Strict checks on token addresses, amounts, and pair validity prevent errors or exploits.

5. Integration with Shibarium and WoofSwap

Shrug operates on Shibarium, a layer-2 blockchain designed for the Shiba Inu ecosystem, offering low-cost and high-speed transactions. It integrates with WoofSwap for seamless token swaps, utilizing the following components:

WoofSwap Router: 0x96b16aBD53Bfd765F4CD118590C1d0be8B57DE24 for executing swaps.
Pair Factory: 0xB9fbdFA27B7ba8BB2d4bB4aB399e4c55F0F7F83a for verifying valid trading pairs.
BONE Token: 0x839FdB6cc98342B428E074C1573ADF6D48CA3bFd as the primary input token.

This integration ensures efficient, trustless swaps within the Shibarium ecosystem.

6. Conclusion

Shrug offers a unique approach to memecoin engagement on Shibarium by combining token purchases with a rewarding SHRUG token distribution model. With a curated whitelist of memecoins, robust security features, and seamless integration with WoofSwap, Shrug provides a transparent and user-friendly platform for memecoin enthusiasts. The project is designed to drive participation in the Shibarium memecoin ecosystem while upholding decentralization and fairness.