The Tangle Treasury Grant Committee has unveiled its plans to reinvest assets in the IOTA EVM DeFi ecosystem, including IOTA, SMR, and USDT. The committee believes that IOTA’s parallel transaction processing and recent compatibility with Solidity smart contracts in the Ethereum Virtual Machine (EVM) are contributing factors to its rapid growth in the DeFi sector.
In a significant announcement, IOTA announced that the total value locked (TVL) on the IOTA EVM has surpassed $20 million. This milestone is the result of months of dedicated work to advance the digital ecosystem and establish a foundation for the next generation of Web3 solutions. This TVL growth signifies the progress IOTA is making in shaping the future of decentralized technology.
The surge in TVL for the IOTA EVM has been remarkable. In early September, the TVL was approximately $5 million, but in less than two months, it has increased nearly fourfold.
This rapid growth highlights IOTA’s emergence as a preferred platform for DeFi applications. If this trajectory continues, IOTA is poised to become a major player in the DeFi ecosystem.
IOTA’s success can be attributed to its innovative and scalable architecture. Unlike traditional blockchain networks, IOTA’s Layer 1 network allows for parallel processing, enabling simultaneous transactions. This horizontal scalability makes IOTA well-suited for DeFi applications that require a high-speed and efficient infrastructure to handle complex financial operations.
Furthermore, the launch of the Ethereum Virtual Machine (EVM) for IOTA earlier this year has propelled the platform forward in DeFi. The compatibility with Solidity smart contracts allows developers to easily migrate Ethereum-based contracts to IOTA’s network, facilitating the development of DeFi applications on the platform.
The Tangle Treasury Grant Committee recently announced its decision to reinvest digital assets, including IOTA, SMR, and USDT, into IOTA EVM DeFi protocols, with a focus on liquidity pools and lending activities. The committee has made it clear that speculative trading will not be included in its investment strategy. The generated revenues from these activities will be used to fund grants, cover operational expenses, and strengthen the financial stability of the Tangle Treasury.
Tangle DAO LLC’s core principle is to maximize the use of assets donated to the IOTA and Shimmer communities. This strategy aims to enhance the financial position of the IOTA/Shimmer ecosystems, extend the organization’s operational timeline, and effectively manage risks.
The IOTA DeFi EVM ecosystem is experiencing robust growth, driven by the IOTA EVM Liquidity Campaign, which is jumpstarting liquidity.
In conclusion, IOTA’s rapid growth in the DeFi sector, fueled by its innovative architecture and compatibility with Solidity smart contracts, has positioned it as a significant player in shaping the future of decentralized technology. The Tangle Treasury’s reinvestment plans further underscore the commitment to strengthen the IOTA EVM DeFi ecosystem and ensure its financial stability.