The embattled decentralized finance (DeFi) protocol Iron Finance is preparing for a relaunch with a new token following the collapse of its old one last month.
The announcement was made in a blog post this week in which the Iron Finance team stated that it plans to go live on the Polygon network on July 12.
The relaunch will include a new token and IronSwap, the Iron Finance stable swap product.
Iron Finance starting again
The Binance Smart Chain-based partially collateralized stablecoin project suffered a token collapse in mid-June. Liquidity was withdrawn from the protocol resulting in a cascade of events that was described as a “DeFi bank run” by the team.
The relaunch will include a new official Iron Finance token called ICE to replace the now-defunct TITAN token. There will be a hard cap of 10 billion tokens, released over a three-year period if all goes to plan.
There will also be liquidity provision incentives with new pools for stablecoins and Ethereum on the IronSwap platform. 4.5 billion ICE tokens will be allocated for IRONv2 stablecoin liquidity incentives and 2.5 billion will be used for liquidity incentives. 2.9 billion ICE will be allocated for a compensation fund with more details on that coming at a later date, it added.
A year of misery
Iron Finance has had a rough year. In March, the platform lost $170,000 from its liquidity pools following erroneous actions by the team. At the time, the team claimed that there was no flaw in its smart contracts and took responsibility for the incident.
In mid-June, Iron Finance suffered again when a few big holders started selling tokens which created a panic as more started redeeming IRON to sell their TITAN.
The protocol uses a two-token mechanism, an IRON stablecoin intended to be pegged to $1, and a TITAN collateral token. This is designed to absorb market volatility caused by shifts in the supply and demand for IRON.
At the time, Iron Finance explained that a negative feedback loop occurred as more TITAN was created (as a result of IRON redemptions) and the price kept going down. It added that this was “a classic definition of an irrational and panicked event also known as a bank run.”
At the time of writing, the protocol’s TITAN token was still trading close to zero. CoinGecko was reporting a price of $0.0000016 for the defunct cryptocurrency.