- The Tangle Treasury Grant Committee announced plans to reinvest IOTA, SMR, and USDT assets into the IOTA EVM DeFi ecosystem.
- IOTA’s parallel transaction processing and recent EVM compatibility with Solidity smart contracts are driving factors in its rapid growth within the DeFi sector.
In a major announcement earlier today, IOTA declared that the total value locked (TVL) on the IOTA EVM has shot past $20 million. This achievement reflects months of dedicated work to advance the digital ecosystem and build a foundation for the next generation of Web3 solutions. With this TVL growth, IOTA will continue to make progress in shaping the future of decentralized technology.
$20M TVL on #IOTAEVM!
This is the culmination of months of dedication to building the digital ecosystem of the future.#IOTA is on the path to shaping the next generation of innovative #Web3 solutions, and we’re grateful to see this represented in measurable growth! pic.twitter.com/2LnAQwStRH
— IOTA (@iota) October 28, 2024
The surge in TVL for IOTA EVM has been pretty fast. In early September, the total value locked was around $5 million, per the CNF report. Thus, within less than 2 months, it has now shot up by nearly 4x.
This strong growth underscores IOTA’s rise as a preferred platform for decentralized finance (DeFi) applications. If the current trajectory continues, IOTA is positioned to become a significant player in the DeFi ecosystem, according to Crypto News Flash.
One of the key drivers behind IOTA’s success has been its innovative, scalable architecture. Unlike conventional blockchain networks that process transactions sequentially, IOTA’s Layer 1 network allows parallel processing, enabling simultaneous transactions. This horizontal scalability makes IOTA ideal for decentralized finance (DeFi) applications that demand a high-speed, efficient infrastructure to handle complex financial operations.
Also, the launch of Ethereum Virtual Machine (EVM) for IOTA earlier this year has taken this platform ahead as part of a significant step forward in DeFi by ensuring compatibility with Solidity smart contracts. This feature enables developers to easily migrate Ethereum-based contracts to IOTA’s network, facilitating the development of DeFi applications on the platform.
Tangle Treasury and IOTA EVM DeFi
Last week, the Tangle Treasury Grant Committee announced plans to reinvest its digital assets—including IOTA, SMR, and USDT—into IOTA EVM DeFi protocols, prioritizing liquidity pools and lending activities. The committee emphasized that it would exclude speculative trading from its investment strategy. Revenues generated through these activities will go to fund grants, cover operational expenses, and bolster the Tangle Treasury’s financial stability.
A core principle of Tangle DAO LLC is to maximize the use of assets donated to the IOTA and Shimmer communities. This strategy aims to strengthen the IOTA/Shimmer ecosystems, enhance the organization’s financial position, extend its operational timeline, and manage risks effectively, reported CNF.
On the other hand, the IOTA DeFi EVM ecosystem is currently seeing strong growth, bolstered by the IOTA EVM Liquidity Campaign, which is effectively jumpstarting liquidity.
