IOTA Secretly Tests Advanced On-Chain Derivatives DEX with Exchange-Grade Architecture

The IOTA network is quietly testing a decentralized exchange (DEX) with a robust, exchange-grade architecture that aims to operate as a decentralized "banking layer" on its blockchain. According to development information from the test environment, this DEX features a matching engine modeled after Hyperliquid, enabling central limit order book performance while remaining fully on-chain without custodians, intermediaries, or exposure to MEV.

Key components include a multi-collateral margin system that extends beyond stablecoins, allowing assets like tokenized commodities to be used for leverage. The platform utilizes a unified oracle framework that routes internal spot price data directly into perpetual futures contracts, reducing reliance on external feeds. Additionally, a synthetic asset framework supports native offerings of tokenized commodities, forex pairs, and index products.

An active DAO is already functional, capable of adjusting on-chain parameters such as fee structures, funding curves, and tick sizes. Community expert Salima highlighted that the DEX is built with the backend robustness of a full-scale exchange but in a trustless format, eliminating KYC requirements and centralized servers.

This initiative is part of IOTA's broader strategy to create a coordinated financial architecture linking trade, collateral, and settlement. The network is pushing for vUSD to become a central stablecoin for payments and DeFi, while projects like Salus tokenize real commodities, and the StableX Unified Settlement Dollar (SBX) standardizes liquidity and pricing. Despite these advancements, IOTA's price has declined recently, trading around $0.13 with a 3% drop in 24 hours.