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crypto.news 2025-05-07 14:40:31

Swirl brings liquid staking to IOTA, boosting liquidity for its DeFi

Liquid staking is coming to IOTA’s DeFi ecosystem, potentially boosting its liquidity and capital efficiency. Liquid staking is coming to IOTA. On Wednesday, May 7, liquid staking solution Swirl launched on the IOTA (IOTA) mainnet. According to the protocol, it is the first liquid staking solution on the IOTA layer 1 network. 5.5.2025 → A new IOTA begins. Built on nearly a decade of research. Inspired by the best of Web3. Committed to open-source values 🔗 https://t.co/CR2O6rocM4 Smart contracts, decentralization, real-world adoption – just 2 weeks to launch🧵⤵️ 1/4 pic.twitter.com/Q7UzJk6zac — IOTA (@iota) April 22, 2025 With Swirl, users can earn IOTA staking yields on their tokens while also retaining liquidity. This works by allowing users to stake their IOTA in return for stIOTA, a liquid token that can be traded at any time. Over time, rewards equivalent to an annual percentage yield of up to 10%–15% accumulate in the stIOTA pool. You might also like: Cryptocurrencies to watch this week: Immutable, Ethena, IOTA Any rewards users receive are auto-compounded, meaning they are automatically reinvested into the staking pool, eliminating the need for manual management. Users can redeem stIOTA for the underlying staked IOTA at any time, trade it on secondary markets, or use it as collateral in DeFi protocols. Importantly, while staking grows the number of IOTA tokens, it does not increase the quantity of stIOTA — meaning the token’s value appreciates over time. For example, a user who exchanges 100 IOTA for 100 stIOTA could, after one year at 10% APY, redeem that same 100 stIOTA for 110 IOTA. You might also like: IOTA price poised for a 95% surge as Rebased countdown continues IOTA Foundation touts the utility of liquid staking Liquid staking has the potential to significantly grow the IOTA ecosystem. Dominik Schiener, Co-Founder and Chair of the IOTA Foundation, emphasized the strategic value of the Swirl integration. “Our partnership with Swirl enables new forms of utility through DeFi, By equipping the IOTA ecosystem with tools that users need to pursue sustainable capital growth strategies and doing so with the right partners who share in our commitment to decentralization, security, and a user experience marked by diversification, we are setting new standards for the future of decentralized finance,” Dominik Schiener, IOTA Foundation. Read more: IOTA price wavers after the Rebased upgrade: will it rebound?

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