Iron Finance
CollapsedStablecoin · $TITAN · born 2021 · ✝ 2021
Crypto's first true bank run — live, on-chain.
A partially-collateralized stablecoin (IRON) backed by TITAN. A panic-driven redemption loop sent TITAN from ~$64 to near zero in hours.
- Peak
- $2B TVL
- Cause
- Collapsed
- Year of death
- 2021
☠️ Cause of death
A fractional-algorithmic design with a reflexive minting loop. Large redemptions triggered a feedback spiral and a classic bank run.
📓 Lessons left behind
- —Partial collateral + reflexive token = fragile peg.
- —Oracle/redemption design must survive panic, not just demos.
- —Even Mark Cuban can get rugged by mechanism risk.
🌱 The idea that survived
Robust peg mechanisms
Overcollateralization and circuit-breakers in modern stable designs prevent the reflexive spirals that ate TITAN.
#bank-run#algostable#depeg