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Dead, abandoned and obsolete · Protocol failure

Iron Finance TITAN

Iron Finance suffered a bank run on 16 June 2021. This is a documented design failure, not a confirmed fraud judgment.

Protocol failureLiquidity disappearedConfidence: high

What happened

IRON lost its peg and the mint/redeem loop destroyed TITAN's price. Iron Finance published a post-mortem describing a bank run.

What failed

Partial collateral plus a volatile recapitalisation token can fail in a run even if the contracts keep operating.

Current status

The original product is not a working dollar substitute.

What users should do

  • Do not assume every collapsed token was stolen.

Lessons

  • A smart contract can execute perfectly and still wipe out users.

Primary sources