- IOTA has upgraded its Rebased Protocol, offering new passive income opportunities through Swirlstake’s liquid staking and Virtue Protocol’s DeFi strategies.
- Users can earn by staking IOTA for $stIOTA, minting stablecoins, or leveraging advanced yield strategies.
The IOTA ecosystem has taken a significant leap forward with the successful execution of the mainnet upgrade of the Rebased Protocol. This upgrade brings full programmability and staking capabilities, providing IOTA holders with new opportunities to earn passive income. Here’s how you can maximize these benefits.
Staking IOTA with Swirlstake: Liquid Staking Made Simple
For those looking to earn passive income without the complexity of traditional staking, Swirlstake offers a straightforward solution. As the first liquid staking protocol on IOTA, Swirlstake allows users to stake their IOTA and receive $stIOTA in return. These $stIOTA tokens grow over time, giving holders a steady stream of income. However, it is worth noting that Swirlstake charges a 10% fee on staking rewards.
Virtue Protocol: Leveraging Your stIOTA
If you hold $stIOTA tokens, Virtue Protocol offers a way to put them to work. Currently running on its testnet, Virtue enables users to mint a stablecoin (vUSD) using IOTA or stIOTA. The stablecoin can be used in various DeFi strategies, including providing liquidity and earning yield.
Advanced Strategies for Maximizing Rewards
- Deepr Finance Yield: Users can provide IOTA or vUSD on Deepr Finance to earn up to 6.6% APY. This is ideal for those who prefer stable returns without much risk.
- Loop Strategy: Confident that IOTA’s price will surge? Use stIOTA as collateral to mint vUSD, buy more IOTA, and repeat. This strategy can amplify gains but also carries a risk of liquidation.
- LP Strategy: Prefer liquidity provider (LP) rewards? Use IOTA as collateral, get vUSD, and provide liquidity alongside another batch of IOTA for dual rewards.
With the Rebased Protocol upgrade, IOTA offers more than just staking—it provides a gateway to advanced DeFi strategies. Whether you are a conservative staker or a risk-taking DeFi enthusiast, the ecosystem has something for you. Explore these options and tailor your strategy to suit your risk appetite.