- IOTA could soon be used as collateral for stablecoin as a different network is reported to be on the verge of staging a “friendly fork” on the decentralized distributed ledger.
- A report explains that this initiative could greatly increase the total value locked by IOTA and make transactions safer within the decentralized finance environment.
Co-founder of IOTA Dominik Schiener recently made an interesting announcement, hinting that another network would have a friendly fork on IOTA to subject the network to significant transformation and expand its use cases.
Times are changing very soon.#IOTA pic.twitter.com/ikgjHa1Vgu— OTTI #IOTA 2.0 (@OTTI28518618) October 28, 2024
Digging for more details, we discovered an extensive report on this by an X user identified as Salima. According to her, the friendly fork would make IOTA an integral part of a multi-collateral stablecoin.
What This Means to IOTA
Explaining the impact of this significant initiative, Salima pointed out that users would have the option to use their IOTA as collateral for a stablecoin. This implies that transactions in the world of Decentralized Finance (DeFi) would be safer and volatility would not be much of a concern.
According to Salima, the Total Value Locked (TVL) of IOTA could greatly increase and potentially boost the use of the ecosystem. Per her observation, the success of this hinges on the decision of users to lock their assets in smart contracts to be used as collateral. Fascinatingly, TVL on the IOTA EVM recently printed more than $20 million as we earlier reported, marking about 400% from the $5 million TVL we announced on September 4.
Meanwhile, Salima has disclaimed that her position is based on speculations triggered by a Discord message. For this reason, she pledged to apologize if this information turns out to be false.
In short: IOTA could be accepted in more places, more people could lock their IOTAs, and this might give the DeFi ecosystem a big push! But remember, this is just speculation based on Discord messages, nothing is confirmed yet. Apologies to IOTA if I guessed right and spoiled your news! Double apologies to IOTA if I got it wrong and this has nothing to do with the actual announcement! Either way, you’ll probably hate me for this, sorry.
Tangle Treasury to Boost IOTA
Prior to this expected fork, the Tangle Treasury Grant Committee announced that it would reinvest in digital assets, including IOTA, SMR, and USDT, within the IOTA EVM DeFi protocol.
Tangletreasury to participate in #IOTA EVM DeFiDear #IOTA #Shimmer community,
The Tangletreasury Grant Committee has decided to again use Tangletreasury assets such as $IOTA, $SMR, $USDT to participate in secure IOTA EVM DeFi protocols, for example in liquidity pools and…— Tangle Community Treasury (@TangleTreasury) October 25, 2024
According to the announcement reviewed by CNF, the decision to restart this program hinges on the fact that a significant portion of Tangle’s assets often remain unused until they are spent on grants or operations. Meanwhile, Tangle DAO LLC is known for its dedication to maximizing the use of assets donated by the Shimmer and IOTA communities.
The IOTA EVM DeFi ecosystem is currently growing and successfully bootstrapping itself with liquidity, with additional liquidity support coming in through the IOTA EVM Liquidity Campaign. These developments offer Tangle DAO LLC low-risk opportunities to join liquidity pools and engage in lending, aiming to strengthen its financial standing by earning trading fees and rewards. Additionally, these activities will help enhance the liquidity depth and quality within targeted pools, for example, by rebalancing unbalanced liquidity pools using Tangle DAO LLC’s assets.
At press time, IOTA was trading at $0.11 after surging by 4% in the last 24 hours.
