- Starting next Monday, the IOTA network may confirm that the first native token liquidity pool will be live.
- This coincides with the final stage of the IOTA community’s governance vote for the Simmer Network, which is expected to end September 3rd.
The IOTA ecosystem could be on the crisis of a major milestone. According to Crypto enthusiast Salima, one of the network’s first “primitive” tokens is set to launch IOTA’s first native liquidity pool next Monday. This paves the way for true on-chain price discovery and new yield opportunities for IOTA-based assets.
“A new milestone will appear in #iota next Monday. One of the first primitive tokens created with IOTA celebrates opening the first liquidity pool for the first time. One of them trades at actual market value, unlocking fresh opportunities for trading and yield.
Why is this important?
Previously, Iota tokens like Stiota and VUSD have existed along with a growing set of native tokens built for private or app-specific ecosystems. What’s lacking is the IOTA venue where these tokens can meet actual market liquidity as well as the representation they have moved or wrapped around elsewhere.
The isolated native liquidity pools instead of tokens will allow the market to ultimately set live on-chain prices for iotanative assets. It also opens the door to creating opportunities as liquidity providers can obtain fees and incentives by supplying tokens to the pool. And when that fluidity is there, it naturally attracts more activities.
In IOTA terminology, “primitive” refers to some of the earliest tokens created in a network. This is often a community-driven asset ahead of new protocols and tools. Listing one of these in a native liquidity pool is iconic and practical. Celebrate early builders as they jumpstart token activity.
Once that liquidity is in place, developers are likely to follow explorer, dashboards and LP management tools, helping ecosystems mature quickly.
Still, this step comes with the usual defi trade-offs. Liquidity providers may take the risk of smart contracts or protocols when token prices change, and liquidity can always be fragmented when multiple pools pop up in the same pair.
Governance vote for Simmer
Apart from this, the IOTA community is heading for a key moment as they prepare to determine the future of Tangle Dao’s assets. SGP-0012, a proposal called the IOTA Network Fund, is that it will all-in-the-go growth with IOTA infrastructure and Tangle Dao, already clears previous community debates, and is now officially voting on the Shimmer network.
Voting began on August 20th with a weekly pre-voting period that runs until August 27th, then the final tally began. Token holders recommend that you have your shimmer token in place to maximize your voting power. The process concludes on September 3rd, when the community examines whether plans to strengthen this plan formally move forward.
