IOTA has launched Swirl, a groundbreaking liquid staking protocol designed to bridge the gap between staking rewards and asset liquidity. The independent ecosystem project on the IOTA mainnet introduces stIOTA tokens, allowing users to earn staking rewards while retaining the ability to trade or collateralize their assets in DeFi protocols.
According to the announcement, Swirl operates on Move-based smart contracts, ensuring a transparent and auditable staking process. By issuing stIOTA tokens in exchange for staked IOTA, Swirl enables users to participate in staking without sacrificing asset liquidity. This dual-benefit structure marks a significant shift in how staking rewards are accessed across the IOTA network.
“Swirl offers users an unprecedented level of flexibility by making staking rewards accessible without locking up assets,” the team emphasized.
DeFi Integration and Enhanced Earning Potential
Swirl’s liquid staking protocol introduces a new set of DeFi utilities, including:
- Instant Unstaking: Users can exit staking positions anytime by burning stIOTA and receiving IOTA back immediately.
- Yield Farming: stIOTA tokens can be used in liquidity pools to maximize returns.
- Collateralization: stIOTA serves as collateral for loans, enabling users to access funds without unstaking.
Additionally, daily staking rewards provide APYs of up to 15%, with users able to compound their returns through secondary DeFi activities such as lending and trading.
Strategic Integration and Institutional Support
Swirl’s infrastructure is backed by Asphere, a blockchain service provider known for working with Microsoft, Binance, and Polygon. The firm’s validator network ensures a secure and resilient staking environment, reinforcing Swirl’s commitment to transparency and reliability.
This strategic partnership aligns Swirl with institutional standards, potentially positioning it as a major liquidity hub within IOTA’s evolving DeFi ecosystem.
Furthermore, Swirl’s launch follows IOTA’s recent Rebased Protocol upgrade, a significant shift that enhances network scalability and smart contract capabilities. With Swirl’s debut, IOTA aims to attract more DeFi participants while expanding its staking and liquidity offerings in the broader crypto landscape.
