IOTA Introduces Liquid Staking—Enhancing Layer 1 Security and Boosting the Web3 Ecosystem.

IOTA’s Swirl has launched liquid staking, enabling users to generate rewards while still utilizing their assets in the DeFi space. Through stIOTA, users can lend, trade, or participate in liquidity pools without having to lock their original tokens, which enhances capital efficiency. This marks a significant shift in IOTA’s approach to digital finance, as Swirl went live on its testnet on April 21st. This functionality allows IOTA holders to stake their tokens without relinquishing access to them, addressing a major challenge in DeFi—the issue of asset lock-up. In contrast to traditional staking approaches that limit the transfer of tokens, Swirl offers flexibility without any drawbacks. Has anyone talked about liquid staking on #IOTA? It’s taking place! Swirl has officially launched on the IOTA Testnet. You can stake your $IOTA to earn $stIOTA and get a glimpse of the future of DeFi on IOTA. The mainnet will be available soon, but testing comes first. – Swirl (@swirlstake) on April 21, 2025. Individuals who stake their IOTA tokens on Swirl are given a liquid token known as stIOTA in exchange. This stIOTA has an equivalent value to staked IOTA and can be utilized within the decentralized financial ecosystem.