Remember the Titan? The TLDR on one of DeFi's most public events.
Titan (Iron Finance)
The Titan has fallen and Iron Finance turned out not to be “ironclad”. Instead, Iron Finance has feet made out of clay! Titan was not a “rug pull” or exploited; instead they experienced what many believed to be a crypto “bank run” from investors.
Titan is a collateralized and algorithmic stablecoin project. For it to truly work users had to use Iron to gain Titan (their stablecoin). When Titan went off it’s peg the crowd panicked and sold.
According to Titan’s Medium blog this is what happened:
Later, at around 3pm UTC, a few big holders started selling again. This time, after they started, a lot of users panicked and started to redeem IRON and sell their TITAN. Because of how the 10mins TWAP oracle works, TITAN spot price drops even further in comparison to the TWAP redemption price. This caused a negative feedback loop, as more TITAN was created (as a result of IRON redemptions) and the price kept going down. A classic definition of an irrational and panicked event also known as a bank run. At the time of writing this, the TITAN supply is 27,805 billion.
At some points, the price of TITAN became so low, close to 0 actually, which caused the redeem contract to revert the redeem transactions. We already queued the fix for this, so people can redeem again at 5pm UTC.
Iron Finance has recovered well, continuing to claw its way back from this event over the course of the summer of 2021.
How Can RugZombie Help?
Although their team is recovering fine, RugZombie wants to take your melted Titan and make it into something useful as well.
- Our team is hosting our FIRST CHARITY AUCTION. We will list a few 1/1 pieces created by artists from across the internet.
2. One of the lucky winners will also receive a future commission featured in a GRAVE for Iron Finance.
3. Our users can bid on these pieces in our MAUSOLEUM using APE LP tokens.
We want to be clear, Iron Finance is actually not a rug pull or a hack! They experienced this awful event, but RugZombie has never been one to steer away from being a bit edgy and irreverent…it’s all in good fun 🙂