Iron Finance — a partially backed token project that is softly pegged to the USD, available on both the Polygon network and the Binance Smart Chain.
Contents:
About the Iron Finance project
The protocol is aimed at maintaining the stability of the price of the IRON token. The Polygon network uses USDC and TITAN tokens, while BinanceSmartChain uses BUSD and STEEL tokens. The USDC or BUSD token is put into the protocol when the user mints the IRON token, while the TITAN or STEEL token that is used for minting is burned. When a user redeems IRON tokens, the protocol returns USDC or BUSD tokens and mints the required number of TITAN or STEEL tokens. The ratio of USDC or BUSD tokens to TITAN or STEEL is determined by the target collateral ratio and effective collateral ratio.
The price stability of the IRON token has a support of several mechanisms:
| 1 | The main pillar of price stability - the ability to redeem the IRON token for approximately one US dollar of tokens. |
| 2 | Another mechanism to support price pegging - the arbitrage opportunity, offered by the minting and redemption functions. |
If the price of an IRON token is less than one US dollar, then anyone can purchase it on the open market and exchange it for a value of approximately one US dollar, subject to a lucrative arbitrage opportunity.
While the sole purpose of some stablecoins - to maintain peg, IRON does this while providing revenue for the holders of governance tokens. This is accomplished by investing unused collateral in a revenue-generating vault that powers the Treasury contract. The Treasury pays the income to the participants through the profit sharing function.
Additional platform details
There is an introductory document on the site. With its help, beginners can quickly understand the operating conditions of the system. To find out about the upcoming innovations, visit the RoadMap section.
The community actively maintains social networks:
- blog;
- github;
- telegram.
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