The IOTA DeFi ecosystem is growing with the introduction of Liquid Staking by Swirl.

Swirl has introduced liquid staking on IOTA, enabling users to earn daily rewards while still keeping their tokens tradable and usable in decentralized finance (DeFi). Upon staking, users receive stIOTA immediately, allowing them to sell, lend, or redeem without being restricted by lock periods. This launch marks a fresh opportunity for IOTA token holders to earn rewards while retaining access to liquidity on the mainnet. According to a press release, Swirl is a project focused on creating an autonomous ecosystem within the IOTA network, allowing users to stake their IOTA and receive rewards in the form of stIOTA. Let’s extend a warm welcome to @swirlstake! The new stIOTA allows you to contribute to the network’s security while also maintaining your tokens within the IOTA DeFi ecosystem. No restrictions on withdrawals or waiting times for unstaking. Take a look at them now at https://t.co/OgxZeYDZwN. — IOTA (@iota) tweeted on May 7, 2025. The stIOTA tokens provide liquidity by allowing users to sell them, utilize them as collateral in decentralized finance applications, or earn extra rewards, all without having to wait for staking periods to end. This feature allows members to move beyond the restrictions of locked tokens, enabling them to utilize their assets across various DeFi options provided by IOTA. Swirl’s framework operates on IOTA’s decentralized contract network and employs Move-based smart contracts to manage staking activities.