Iron Finance has made new changes to its protocol following the collapse of its old TITAN token.
Iron Finance Relaunch
Iron Finance has released the schedule for the relaunch of its protocol after a failed attempt with IRON V1. According to the multi-chain protocol’s Tweet on July 11, the relaunch kickstarted on Monday, July 12. In addition, the relaunch will be built on the Polygon network.
Post Mortem: Iron Finance V1 Collapse
On June 16th, the protocol witnessed the most significant crypto bank run in history after whales caused a huge decline to its native TITAN token. The whales removed liquidity from IRON/USDC by selling TITAN to IRON and subsequently IRON to the stablecoin USDC. Unfortunately, whales sold out directly to liquidity pools instead of redeeming IRON, causing the price of IRON to crash.
At that point, according to the protocol’s report, the price of TITAN dropped by more than half its initial value from $65 to $30. The drop occurred within 2 hours, however, a price correction saw its value rise back up to $52.
This scenario was taken as an everyday occurrence by the protocol judging by the regular price correction of the IRON protocol, which saw the token crash over a dozen times since its launch. At the same time, share-tokens (STEEL and TITAN) faced a significant decline a couple of weeks back. What’s more, the protocol was still working at full speed so, there was no reason to panic.
At exactly 3 PM UTC the same day, some whales started dumping (selling) again. This caused panic across the entire ecosystem, such that users began to redeem IRON and sell their TITAN holdings. IRON redemptions mean that more TITANs will be created. At some point, the price of the TITAN token reduced to almost 0, representing a historical bank run in the modern crypto space.
Speaking concerning the devastating event, a popular investor on the protocol, Fred Schebesta, said, “What happened is just the worst thing that could happen considering their tokenomics.”
To correct this drawback, Iron Finance decided to relaunch its protocol on the Polygon network.
The relaunch has taken full momentum according to the protocol’s Tweet. The protocol disclosed that the launch took effect on Monday, 12th July at 1 PM UTC on Polygon’s secured layer 2 network.
This comes after the Iron Finance team renounced its ownership of the old TITAN token, now run by the Titan Decentralized Autonomous Organization (DAO) community initiative. With this in mind, TITAN will be replaced by the ICE token, inspired by the Game of Thrones novels, “A Song of Ice and Fire,” with its conventional Iron Throne symbol.
In addition, the relaunch will feature the IronSwap integration. This effort will integrate its stablecoin Swap product, governance staking, IronLend for lending and borrowing assets, stablecoin, private auto compounding vaults for stable assets, IronDAO, and lastly, the Iron Finance Lottery. However, these features will not be integrated immediately. The protocol’s roadmap has detailed the next steps.
Maximum supply: 10,000,000,000 ICE (Hard Cap)
Maximum supply will be achieved in 3 years
For extensive details about ICE tokenomics, including more information about IronSwap, IronLend, etc., refer to their Medium article.
About Iron Finance
Iron Finance is a protocol created for building a full suite of Decentralized Finance (DeFi) ecosystem of products and use cases on the Polygon network. The protocol is a partially collateralized stablecoin protocol built on Binance Smart Chain, consisting of the Foundry, the Vaults, and offering IRON and STEEL tokens. The ICE token is the protocol’s native cryptocurrency, inspired by the well-known Iron Throne symbol obtained from the famous George R.R. Martin stories.
Source : bsc.news
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