The Iron Finance Dev team made an announcement in a blog post earlier this week on the plans to go live on July 12 on the Polygon Network.
The relaunch, they say, will include a fresh token and the Iron Financial stable Swap product called IronSwap.
Iron Finance is Restarting
The partially collateralized stablecoin project based on the Binance Smart Chain suffered a collapse in June. The cascade of events started with the withdrawal of liquidity from the protocol, which the dev team described as “DeFi bank run”.
There will now be an inclusion of a new official Iron Finance token, ICE, with the relaunch as a replacement for the TITAN token that is now defunct. If everything goes as it was planned by the dev team, there will be a hard cap of about 10 billion tokens, released over three years.
With the relaunch will also come incentives of liquidity provision with fresh pools of stablecoins and ETH on the IronSwap platform. About 4.5 billion ICE tokens will be assigned for the incentives intended for the IRONv2 stablecoins liquidity. 2.9 billion ICE for the compensation fund, which everyone is expecting more details on that soon.
A Huge Year of Misery for Iron Finance
The protocol has a very rough year. The turn of the situation began with the $170,000 liquidity loss in March after the team took some erroneous actions. Then, the dev team claimed there is no defect in the protocol’s smart contract and took total responsibility for it.
In June again, the major token holders started selling their tokens which contributed to the woes of the protocol. Many started redeeming IRON just to sell TITAN.
The protocol is using a two-token system as the IRON stablecoin is intended to be pegged to $1 and TITAN as a collateral token. This system is developed to absorb the volatility in the market caused by the shifts in the demand and supply of IRON.
Currently, the protocol explained that as more TITAN is created, a negative feedback loop is created (as a result of IRON redemptions), yet the price is declining each day. They added that the precise definition of the panicked and irrational event is Bank Run.