Select Page

Another Algorithmic Stablecoin Crashes to Death; Mark Cuban Promoted TITAN Losses 100% of Value and Goes to Zero

Another Algorithmic Stablecoin Crashes to Death; Mark Cuban Promoted TITAN Losses 100% of Value and Goes to Zero
This article is added for educational purpose only. All credit goes to the respected author of this article. All In One Crypto App do not hold any liabilities of this article. You can get the source link at the end of the article content.

Another day, another decentralized finance (DeFi) protocol has taken a hit.

Not just a DeFi project, but an algorithm stablecoin has ended up crashing. Algorithmic stablecoins use algorithms to balance the circulating supply of the asset, but they have failed to maintain their peg and flourish.

Just last week, Polygon-based DEX QuickSwap Malt Stablecoin (MALT) ended up losing its $1 peg to fall to 0.18.

MALT is a yield farming incentive-centric algorithmic stablecoin that uses bonding LP mechanisms along with Arbitrage auctions to stabilize.

On Wednesday, another Polygon-based algorithmic stablecoin project, Iron Finance’s token TITAN, lost 100% of its value. The price of TITAN rallied above $64 high only to fall straight to zero.

IRON also lost its peg to fall from $1 to $0.615 and now trades at $0.69.

Iron Finance is a partially collateralized token that is soft pegged to the USD. The project is actually a fork of FRAX stablecoin and popularized by Twitter, especially billionaire investor Mark Cuban, who recently revealed that he had been involved in it.

In a blog post on Sunday, he shared that he has been providing liquidity for DAI/ TITAN on QuickSwap.

Recently, Cuban also joined a panel discussion at the DeFi Summit virtual conference, where he said Polygon (MATIC) is “destroying everybody else” as it is “getting so much momentum,” making it “hard to catch up” for others.

While it was believed Cuban lost millions of dollars as an LP, he doesn’t seem to have suffered losses.

“I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than Bam,” said Cuban in response to the question if he “rugged CT or himself got rugged on IronFinance.”

Instead of an exploit, the incident seems to be similar to a bank run where people continue to cash out, sending the prices of the token falling until it couldn’t go down anymore.

“Could be an exploit but unlikely, other protocols broke in the same fashion without any bad actor,” noted @0xSisyphus. “Pretty sure the mechanism it broke thru is b/c people sold titan for other reasons, and that meant there wasn’t enough value contained in titan to fully repay the iron holders.”

There are two tokens at play here, IRON and TITAN.

USD-pegged stablecoin USDC is deposited in the protocol when a user mints the IRON token while TITAN, which is used for minting, is burned. When the user redeems IRON tokens, the protocol pays back USDC and mints the required amount of TITAN tokens.

“It has a circulating supply of 0 TITAN coins and a max supply of 27.8 Trillion,” states CoinGecko.

The drop in TITAN’s price, after people started selling, caused IRON to lose its peg, which in turn sent the TITAN price crashing, and the whole cycle continued.

Iron Finance protocol noted on Twitter that because the price of TITAN fell to 0, the contract didn’t allow for any redemptions and will take at least 12 hours for the timelock to pass before USDC redemptions are possible again.

“Redeeming IRON for USDC will resume at 5 PM UTC,” tweeted the team on Thursday and asked users to remove liquidity from DND/BNB and DND/IRON pairs.

The post Another Algorithmic Stablecoin Crashes to Death; Mark Cuban Promoted TITAN Losses 100% of Value and Goes to Zero first appeared on BitcoinExchangeGuide.

 

Source: BitcoinExchangeGuide

 

All In One Crypto App presents a unique dynamic crypto course that allows you to become a profitable and successful trader. Download Now

Don't forget to share your review/suggestions for the android app.

All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.es here

Categories

Select a Sub Category
category
616aa0d1c9485
0
1
Loading....

Reviews

All In One Crypto App

Made $234 profit with Free Signals from $50

This is the best useful app on my phone. Started trading with $50 and in 5 weeks I was up to $234 just with the free signals. I will recommend it to any new person that wants to try trading crypto. Link to Review

Asoluka Chimdindu

Free User
All In One Crypto App

Good Support

This app is one of the best for crypto currency trading signal for experts and beginal with free and premier with auto follow trading bot all the signal is excellent with accurate technical analysis and fundamental I really like the way they guide and support. Link to Review

olaplus olaplus

Premium User
All In One Crypto App

Accurate Trading Signals

I was premium member of this channel back in 2018 when there was no app. Thr signals were too good, more than 90% accuracy. Now with this app and newly introduced auto trading bot, it will be awesome. Too the moon. Link to Review

Yogesh Patil

Premium member
All In One Crypto App

Awesome and Accurate Signals

Very glad to use this app. The crypto signals was awesome and accurate with detailed explanation and visual information. The admin also helpful and nice. Link to Review

soon cheong

Free User
All In One Crypto App

User Friendly App

Signals are great. I love it. App also friendly to use… Nice job guys Link to Review

Olawunmi Dilureni

Premium Subscriber