Glossary
Iron Finance
A partial-algorithmic stablecoin protocol on Polygon that collapsed June 16, 2021 — a "bank run" on its TITAN token wiped out roughly $2 billion in market cap in a day.
Iron Finance ran a partial-algorithmic stablecoin (IRON) on Polygon and BSC, partly backed by USDC and partly by minting its share token TITAN. The model worked in calm markets — until June 16, 2021, when a confluence of large TITAN sales triggered a reflexive death spiral.
As TITAN's price fell, the protocol minted more to back IRON, which accelerated the price decline, which forced more minting. Within hours TITAN's price fell to effectively zero. Mark Cuban publicly held TITAN during the collapse and called it a "bank run". The event was a key reference for the subsequent Terra/UST analysis.