- Stablecoin a digital asset that is #pegged to fiat currency is considered as the most important cornerstone in #DeFi . - Stablecoins provide an excellent method to park money during trading or to use as a base currency. - The most prominent use case of stablecoins is stability and how it helps cryptocurrency users, especially traders, hedge against volatility.There are several types of stablecoins, including fiatbacked, cryptocollateralized, and algorithmically stabilized stablecoins. - While fiatbacked stablecoins are not 100% decentralized, cryptocollateralized stablecoins like DAI have issues of overcollateralization. - On the other hand, purely algorithmic protocols such as Basis, ESD, DSD and others provide a very noble solution to establish stablecoins with no backed assets. - The issue with purely algorithmic protocols is their ability to react on volatility, which results in many of these algostablecoins ending up in deadzone.Inspired by FRAX the unique fractionalalgorithmic stablecoin on Ethereum, using the same design, we’d like to introduce IRON, the first partialcollateralized stablecoin on Binance Smart Chain.Iron protocol will have 2 tokens: IRON and STEEL.STEEL Iron Share is the algorithmic token which accrues seigniorage revenue and excess collateral value.IRON is a stablecoin pegged to $1, partially backed by collateral like BUSD, USDT and partially backed algorithmically by STEEL. - The ratio of collateralized and algorithmic, so called Collateral Ratio CR, depends on the market pricing of IRON.The ratio of collateralized and algorithmic assets will depend on the market price of IRON. - If IRON > $1, meaning the markets demand for IRON is high, the system can decollateralize by decreasing the CR. - If IRON.
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