IRON vaults
- This stablecoin is likely depegged. The current rate is 518,135 IRON / 1 USD fetched at .
About Iron Finance
Iron was a partially algorithmic stablecoin by Iron Finance on Polygon. It suffered a bank-run-style collapse in June 2021 when its TITAN collateral token lost nearly all value. The project is now defunct and serves as a cautionary example of algorithmic stablecoin design.
Iron Finance issued IRON as a partially algorithmic stablecoin on the Polygon network. IRON was backed by a combination of 75% USDC and 25% TITAN (Iron Finance's native governance token), with the Target Collateral Ratio (TCR) determining the exact split at any given time.
Mechanism
To mint $1 of IRON, users deposited USDC and TITAN in the required ratio. The TITAN portion was burned on mint and newly minted on redemption, creating reflexive supply dynamics. A 10-minute TWAP oracle was used to price TITAN for redemption purposes.
Collapse (June 2021)
On 16 June 2021, large holders began removing liquidity from the IRON/USDC pool and selling TITAN, causing IRON to depeg. Because the TWAP oracle lagged the spot price, redemptions minted more TITAN than the spot price implied, flooding the market with new TITAN supply. This triggered a hyperinflationary death spiral — TITAN fell from ~$65 to effectively $0 within hours, taking IRON well below its $1 peg. The event is widely cited as crypto's first large-scale DeFi bank run, with estimated losses of approximately $2 billion. Notable investors including Mark Cuban were affected.
Iron Finance published a post-mortem on 17 June 2021 attributing the collapse to design flaws in the arbitrage mechanism and oracle latency. The project is now defunct.
Sources
Filters
Display
Hide vaults
Performance and risk
The vaults on the listing are limited to the current category. See all vaults.
| 3M price |
|---|
Stay ahead with the best new vaults and essential DeFi updates.
Subscribe to Trading Strategy newsletter