Supply Cap & Stability Mechanisms

Supply Cap

IRON will have a supply cap of 50M at launch and will be increased as we grow. Implications and lessons learned:

  • A cap prevents IRON supply from unnecessarily overinflating

  • Better control over IRON supply, and supply growth, minimizes unnecessary supply volatility

  • Since ICE is required to mint IRON, stability of IRON supply also prevents both positive and negative demand shocks for ICE in the short term.

Stability Mechanisms

Over-collateralisation is the main stability parameter. Others will include:

  • IronSwap integration: deposit LP tokens in an existing stablefarm to earn ICE rewards

  • In development as of 28 Aug: IRON Saving (single-staking product): Deposit IRON > earn ICE.

    • Governance will control the target interest rate of IRON Saving, which will help to control the amount of IRON in the market.

  • Minting & Redeeming: You can mint or redeem the IRON stablecoin whenever there is an arbitrage opportunity. The mint/redeem mechanism has a 0.5%/0.9% fee, respectively, where accumulated fees go to governance stakers.