Published on April 26, 2021

IR O N .FI N ANC E

Partial collateralised stablecoin

on the BinanceSmartChain

Time-lock Audited $115M

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Important information

This brochure is not an official document of IronFinance and

the information and the data in this document may be
factually wrong or inaccurate. Nothing contained in this
document should be construed as  investment advice. This
document is distributed for general informational and
educational purposes only and is not intended to constitute
investment advice. The information contained herein is not,
and shall not constitute an offer to sell, a solicitation of an
offer to buy or an offer to purchase any cryptocurrencies or
tokens nor should it be deemed to be an offer, or a
solicitation of an offer, to purchase or sell any investment
product or service.

This document was made by @raccooneu

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 IRON token
What is IRON? 4
Minting 5
Redeeming 6
Collateral 7
Price stability 8

STEEL token
What is STEEL? 9
Farming 10
vFarm and vSafe 11
Foundry 12

Protocol
ECR (effective collateral ratio) 13
TCR (target collateral ratio) 14
Vaults (invested idle collateral) 15-16

Information
Time-lock, audit 17
Illustrations 18-20

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What is IRON?

IRON token is a partially collateralised token, soft pegged to

the U.S. Dollar. The protocol aims to maintain IRON token’s
price stability, in other word the peg, by storing sufficient
collateral in the time-locked smart contracts. This collateral
is used for redemptions, helping to maintain price stability.

The collateral consists of two tokens. BUSD and STEEL

token. The BUSD token is deposited into the protocol when a
user mints IRON token, while the STEEL token, serving as
collateral is burned when a user mints IRON token and
minted by the protocol when a user redeems IRON token.

The ratio of BUSD and STEEL token used by the minting and
redeeming function is determined by the Target Collateral
Ratio (page 14) and the Effective Collateral Ratio (page 13).

Quick facts

• Collateralised with BUSD and STEEL token

• Minted with approximately $1.00 worth of deposit
• Redeemed for approximately $1.00 worth of tokens
• Listed on CoinGecko
• Address: 0x7b65b489fe53fce1f6548db886c08ad73111ddd8

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Minting

Minting is the name of the process which creates IRON

tokens. In order to mint 1 IRON token, the user must deposit
approximately $1.00 worth of collateral into the protocol in
the form of BUSD and STEEL token. The ratio of BUSD and
STEEL token that is required for minting IRON token is
determined by the Target Collateral Ratio (TCR) (page 14), or
TCR in short.

The percentage of BUSD token required always equal to the

TCR percentage, while the required percentage of STEEL
token is 100% minus the TCR percentage. The STEEL token
used in the minting process is burned, decreasing the
circulating supply of STEEL token.

Minting IRON tokens has a 0.2% fee, which is deducted from

the amount the user receives.

Example

If you would like to mint 1,000 IRON tokens and the TCR
percentage is 75%, then you need 75% BUSD and 25%
STEEL token or 750 BUSD token and 250 BUSD worth of
STEEL token as collateral.

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Redeeming

Redeeming is the name of the process where the user

returns IRON token to the protocol in exchange for collateral.
The protocol burns the redeemed IRON token and pays the
user approximately $1.00 worth of value in BUSD and STEEL
token.

The ratio of BUSD and STEEL token paid to the user is

determined by the Effective Collateral Ratio (page 13), or
ECR in short. The ECR percentage equals to the percentage
of BUSD token the user receives in the redeeming process,
while the percentage of STEEL token paid to the user is the
sum of 100% minus the ECR percentage. The STEEL tokens
received in the redeeming process is minted, increasing the
circulating number of STEEL tokens.

Redeeming IRON token comes with a 0.3% fee, which is

deducted from the amount the user receives.

Example

If you would like to redeem 1,000 IRON token and the ECR
percentage is 85%, then you should receive 850 BUSD token
and 150 BUSD worth of STEEL token.

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Collateral

The protocol works with two collaterals, BUSD and STEEL

token. BUSD token is received by the protocol when the user
mints IRON token and this deposited BUSD is stored in the
protocol’s time-locked smart contracts. The STEEL token
which is used in the minting process is used as collateral
dynamically, meaning when the user mints IRON token,
STEEL token is burned and if the user redeems IRON token,
then STEEL token is minted.

The Effective Collateral Ratio (page 13), or ECR in short, is

the percentage of BUSD stored as collateral relative to the
supply of IRON token. If the ECR is 85% and the supply of
IRON is 10 million, then 8.5 million BUSD is stored in the
protocol, while the other 1.5 million IRON is dynamically
collateralised with STEEL token.

To further strengthen the price of both IRON and STEEL

token, the protocol invests part of the the idle BUSD
collateral to earn interest for the protocol (page 15).

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Price stability

The IRON token’s price stability is supported by multiple

mechanisms. The main pillar of the price stability comes
from the possibility of redeeming IRON token for
approximately one U.S. Dollar worth of tokens.

Another mechanism to support the price peg is the arbitrage

opportunity offered by the minting and redeeming functions.

If the price of the IRON token is less than one U.S. Dollar,
then anyone can purchase it on the open market and redeem
it for approximately one USD worth of value.

If the price of the IRON token is more than one U.S. Dollar,
then anyone can mint it with the protocol for approximately
one USD worth of value and sell it on the open market.

Furthermore, the Target Collateral Ratio (page 14), or TCR in

short, modifies the required percentage of the native token in
the minting process.

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What is STEEL?

STEEL token is IronFinance’s share token, functioning as

collateral and it allows investors to receive income from the
Foundry (page 12).

In the first year the maximum supply of STEEL token is

limited to 28 million. This maximum supply is reached in 12
months only.

The circulating supply of STEEL token changes because it is

both burned when someone uses it to mint a IRON token and
it is also minted when someone redeems IRON token.

Quick facts

• It serves as collateral besides BUSD token

• It is burned when used for minting IRON token
• Investors can receive income by staking it in the Foundry
• Listed on CoinGecko
• Address: 0x9001ee054f1692fef3a48330cb543b6fec6287eb

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Farming

Investors can yield farm STEEL token in ValueDefi’s vFarm

and vSafe farms by providing liquidity in one of the following
50%-50% pools:

IRON — vDOLLAR IRON — BUSD BNB — STEEL

Before ~April 18, 2021

In the first month, between ~March 18, 2021 and ~April 18,
2021 investors in both farms receive 30% of the APR%, while
the remaining 70% is locked. This locked reward will be paid
out linearly between ~April 18, 2021 and ~July 18, 2021.

From ~April 18, 2021

From this date the rate of immediately available rewards for

both vSafe and vFarm will gradually increase from 30% to
100% by ~July 18, 2021. The difference between 100% and
30% is paid out linearly with the locked rewards by ~July 18,
2021.

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vFarm

The 70% locked reward is linked to each individual wallet

address and paid out even if the person is not farming in the
three months period while it is being paid out.

Manual compounding Locked rewards linked to wallet

No fee on pro t Gas to be paid when compounding

vSafe

The 70% locked reward is not linked to each individual wallet

address and paid out to those investors who are farming on
the last day when the 30%/70% scheme ends, however in the
three months period while the 70% reward is paid out, you
get paid your share of the rewards only while you are
farming. If you are farming for 1 week out of the 3 months,
then you get the 70% rewards for that week only.

Automatic compounding Locked rewards is pooled

5% fee on pro t Auto-compound costs no gas

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Foundry

STEEL token investors can stake their tokens in the Foundry

to receive income. The minimum staking period is 4 epochs.
The duration of 1 epoch is 12 hours.

The Foundry receives income from the following sources:

• The 0.2% minting and 0.3% redeeming fee

• 10% of the DND supply received over 12 months
• Income received from the Vaults (page 15)

The money received from the sources above is pooled

together and a portion of it is paid out in every epoch. The
Utilisation Rate is the percentage share of the pool that is
being paid out in that particular epoch.

Example

If the value of the pool is $1,000,000 and the Utilisation Rate

is 1.5%, then $15,000 worth of BUSD will be paid out in that
epoch.

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ECR

ECR stands for Effective Collateral Ratio and it is showed in

percentage. This percentage expresses the amount of BUSD
token stored as collateral for the IRON token.

If the Target Collateral Ratio (page 14), or TCR is short is

lower than ECR, then the protocol has Excess Collateral.
TCR is usually lower than ECR when the demand for the
IRON token is high and the price stays above the peg.

If the TCR is higher than the ECR, then the protocol has no
Excess Collateral. TCR is usually higher than the ECR when
the price of the dToken in question stays around and below
the peg for extended period of time.

Example

If ECR is 85% and the circulating supply of IRON token is

30,000,000 then 85% of it is collateralised with BUSD token,
therefore 25,500,000 BUSD is held as collateral in the
protocol’s time-locked collateral smart contract and the rest
of the collateral is provided dynamically in STEEL tokens.

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TCR

TCR stands for Target Collateral Ratio and it is showed in

percentage. This ratio expresses what percentage of BUSD
token is required to mint IRON token.

If the time weighted average price of IRON token in the past

hour is more than $1.00, then the protocol lowers the TCR by
0.25%. If it is less than $1.00, then the protocol increases the
TCR by 0.25%.

TCR can increase or decrease by maximum 0.25% per hour

and maximum 6.00% per day.

Example

If TCR is 75%, then the user needs 75% BUSD token and 25%
STEEL token to mint IRON token.

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Vaults

BUSD tokens used as collateral for the minted IRON tokens

is stored in the protocol’s time-locked collateral smart
contract, however in optimal conditions the daily
redemptions are only a small part of the supply of IRON
token. In this case a large portion of this collateral is idle and
economically speaking inefficient. Vaults changed this by
investing a large portion, but not all of the BUSD token
collateral to generate passive income to the protocol and to
the Foundry (page 12).

Out of all the BUSD the protocol stores as collateral,

maximum 75% is invested into Vaults, while the remaining
25% is kept by the protocol to serve the daily redemptions of
IRON token.

If this 25% of all the BUSD collateral, stored in the protocol’s

time-locked collateral smart contract, serving the daily
redemptions of IRON token, decreases to 15% or less, then
the Vaults will withdraw some of the invested BUSD tokens
back to the protocol.

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Vaults - explanations

Invested Collateral Ratio is the percentage of all the BUSD

collateral that is set to be invested via Vaults to generate
income to the Foundry (page 12) and to the protocol.

Effective Reserve Collateral Ratio is the present percentage

of all the BUSD the protocol stores as collateral that is not
invested via Vaults but kept in the protocol to serve daily
IRON token redemptions.

Reserve Threshold Ratio is the set percentage of all the

BUSD collateral the protocol has at which it will withdraw
investments from the Vaults to have more BUSD at the
protocol for the daily IRON token redemptions.

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 Time-lock

The following smart contracts are owned by a time-lock

contract with a 24 hours minimum time-lock.

0x6927E99071578B75 0xDE3BaA1e28740e7f
Time-lock 5292199bCbbe653975 Treasury DbdBf65E78efcb3aA9
606316 94b110

0xFE6F0534079507De 0x9Ef9a563C5639349
BUSD Collateral 1Ed5632E3a2D4aFC2 Foundry e211450Bfcf59E7f745
423ead2 3ab90

0x523A6F12cE058455 0x59a584C62a2410aF
Revenue pool 4dc4A61F7 570b1Ab Vaults e389278f23aB86846B
66B1Bd 20751f

Audit

IronFinance has published its first audit on April 1st, 2021

which was successful and was made by OMNISCIA.

https://docs.iron.finance/audits

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Illustration
Minting

STEEL token
used for minting
is burned

BUSD STEEL

% ratio equals % ratio equals

to TCR% 100% - TCR%

0.2% minting
fee paid to
Foundry
IRON

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Illustration
Redeeming

0.3% minting
fee paid to
Foundry
IRON

STEEL token is
minted for
redeeming

BUSD STEEL

% ratio equals % ratio equals

to ECR% 100% - ECR%

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Illustration
Foundry

Income from
investments

0.2% Vaults 0.3 %

minting fee redeeming
fee

Income from Vaults

10% of DND
Revenue supply
Pool exchanged
to BUSD
Utilisation Rate %

Foundry

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