For a long time, stable coins have been the most important piece in the blockchain, especially in the Defi industry. Iron Finance presents a partial-collateralized stable coin on the Binance Smart Chain.
What is Iron Finance?
Various types of stable coins exist in the market; the fiat collateralized, which is not 100% decentralized, e.g., USDT, crypto collateralized like DAI, which has an over-collateralization issue. There are also, purely algorithmic protocols such as Basis, BDO, ESD, and DSD. These leverage seigniorage to establish a stable coin with no backed assets. With no collateral these face issues due to their inability to react to volatility that can result in algo-stable coins ending up in the dead zone.
Iron Finance presents a partial-collateralized stable coin on the Binance Smart Chain. Inspired by the FRAX stable coin protocol, the team of Iron protocol presents its stable coin using a refreshed design.
Partial-collateralized Stable coins
The iron protocol will have two issued tokens;
IRON: A partially collateralized stablecoin on the BSC network pegged to $1, partly backed by collateral like BUSD, and partially backed by STEEL. The collateralized ratio (CR), which is the collateralized and algorithmic ratio, depends on the market pricing of IRON. If the market demand for IRON is high, the system can be de-collateralized by decreasing the CR vis-a-vis when the demand is decreased.
STEEL: Iron share is the algorithmic token that accrues seigniorage revenue and excess collateral value.
To achieve a greater volume in the BUSD-IRON pair and other popular stablecoins like USDC, USDT, and DAI the protocol features a very liquid stablecoin AMM. The protocol has announced a partnership with ValueDeFi and their state-of-art vPegSwap product
vPegSwap is a solidity customized implementation of Curve.fi’s StableSwap. Allowing the trading of tightly pegged tokens with much less slippage than standard AMMs like Uniswap or Pancakeswap. Furthermore, vPegSwap uses a bonding curve mechanism to secure a stable and ample cross-liquidity pool. IRON makes up part of the five stablecoins available in the swap, with total liquidity of $73 million.
Yield Farm Pool
The Yield farming pool is already active for use.
Earn STEEL with the following LPs
All pool earnings come with amazing APRs as more planned LPs are scheduled for addition.
Stake STEEL to earn BUSD. The Foundry will offer a single asset staking mechanism for users to earn BUSD stable coins.
The Foundry is the latest innovation of the protocol where STEEL holders can earn seigniorage income. The difference between the Foundry and other algo stablecoins existing is that the rewards you earn from other algo stablecoins are minted out of thin-air during its expansion phase. In contrast, the rewards you gain from the Iron Finance Foundry are collateral assets (BUSD), representing the profit accumulated by the protocol.
Graphical representation of describing the Iron Finance economic model and protocol design.
The profit from the ecosystem comes from:
IRON minting and redemption fees
Excess collateral management
Passive income strategies
Full details about the Foundry and its operation are found in this Medium post.
Lending, Multichain, Yield Aggregator, and Gaming
Integration into lending platforms like Venus and vLend (upcoming lending protocol for ValueDefi), yield aggregators (bearnfi, alpaca, beltfi), and decentralized casino gaming platforms are currently underway.
Multichain integration with other lending platforms on smart chains like Avalanche, Cosmos, Polkadot, HECO, and Wanchain are in the works.
IRON stablecoin circulating supply – 43 million
STEEL circulating Supply – 340k
Community Distribution – 80, 000, 000 STEEL (80%)
26, 000, 000 STEEL will be distributed to the vSwap LP staking pools for the duration of 12-months
Team Distribution – 20, 000, 000 STEEL (20%), vested
At genesis, minting and redemption fees were pegged at 0.3%, but as of 25 March 2021, the minting fee got a reduction from 0.3%-0.2%. The redemption fees remained at 0.3%. Full tokenomics is available in the docs.
Source : bsc.news
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