Iron Finance: The First Partial-Collateralized Stablecoin on Binance Smart Chain

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.

By
Wilfred Victor
on
April 3, 2021
Category:
Project Insight

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. 


Key Features

  • Partial-collateralized Stable coins
  • Lending 
  • Cross-chain 
  • Gaming
  • Yield Farm
  • Governance

Project Composition

The iron protocol will have two issued tokens;

  • Iron
  • Steel

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.

vPegSwap Integration

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

  • IRON-BUSD 
  • BNB-STEEL
  • IRON-vDOLLAR

All pool earnings come with amazing APRs as more planned LPs are scheduled for addition.


The Foundry

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.

Tokenomics

IRON stablecoin circulating supply - 43 million

STEEL circulating Supply - 340k


STEEL Distribution

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.


Audit

Security is an essential building block for the success of Iron Finance. Having professional third-party audits, IRON and STEEL users, as well as partner projects, enjoy high reliability in the Iron Finance code and project as a whole. The first audit has been done by Omniscia.

OMNISCIA Full Audit Report: https://omniscia.io/iron-finance-core-contracts/

Findings:

  • 2 major issues: Resolved
  • 2 medium issues: Resolved
  • 10 minor issues

About Omniscia: https://omniscia.io/

Iron Finance will initiate a second (and perhaps third) audit in April and May. Our auditors of choice will be announced publicly once chosen.


Roadmap

As obtained in the roadmap guide. The future of the protocol will be exciting, and plans are presented as follows;

  • Utilization of idle collateral assets: Extra income from lending to other protocols, participation in yield farming projects, arbitrage opportunities through the deposited collateral in the bank will be used to burn more STEEL tokens to increase its value.
  • Introduction of IRON Bond: A third token introduction, IRON Bond - a self accumulating interest token - will represent the protocol’s debt side. The bond token will provide a second line of defense against the inflation of IRON together with the redemption function.
  • Removal of stablecoins as collateral assets: Gradually, Iron Finance will remove other stable coins like BUSD, USDT, USDC from backing its stable coin. The plan to achieve this has not been revealed but will be part of planned mid- to long-term integration.

More features that serve the protocol’s benefits to the users will be added alongside project growth. Cross-chain with multichain of HECO, Avalanche is planned as well as lending and gaming integrations. All of which are part of the project’s plans in consideration.


In Conclusion

Iron Finance will serve a classic innovative range of Defi products suite to users and a more reliable stablecoin in the future. Its gradual shift from the other stablecoins will aid the unique disposition of its stable coin offering.

Pretty much all of its upgrades, features are determined by its governance protocol. The project has gone ahead to implement features that give its protocol a community-driven feel. Incredible earning opportunities using stable coins are available through its Foundry program scheduled for launch in four days.

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.

For those who wish to learn more about Iron Finance, check out the following resources and media pages:

Website

Twitter 

Telegram

Medium

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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.