Verify a decision

{"actor":"system:backfill","investigation_id":"6189fec9-4020-44fa-9a88-735fc5a2f100","kind":"publish","page_slug":"iron-finance","published_at":"2026-05-30T12:58:46.194Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Iron Finance","sections":[{"content":"","heading":"Protocol Overview and Mechanism","severity":"high","sources":[{"credibility":2,"name":"Iron Finance Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Iron_Finance"},{"credibility":2,"name":"Bank Run in DeFi – Iron Finance Fiasco Explained – Finematics","type":"research","url":"https://finematics.com/bank-run-in-defi-iron-finance-explained/"},{"credibility":2,"name":"Iron Finance Expansion to Polygon – Iron Finance Medium","type":"official","url":"https://ironfinance.medium.com/iron-finance-expansion-to-polygon-8a714ba5635e"},{"credibility":3,"name":"Iron Finance (IRON/STEEL/TITAN) – CryptoCurrency Wiki","type":"other","url":"https://cryptocurrencywiki.org/Iron_Finance_(IRON/STEEL/TITAN)"}]},{"content":"","heading":"The Death Spiral: June 16–17, 2021","severity":"critical","sources":[{"credibility":2,"name":"Iron Finance Post-Mortem 17 June 2021 – Iron Finance Medium","type":"official","url":"https://ironfinance.medium.com/iron-finance-post-mortem-17-june-2021-6a4e9ccf23f5"},{"credibility":1,"name":"Iron Finance's Titan Token Falls to Near Zero in DeFi Panic Selling – CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/06/17/iron-finances-titan-token-falls-to-near-zero-in-defi-panic-selling"},{"credibility":1,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – Federal Reserve","type":"regulatory","url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"credibility":1,"name":"In Token Crash Postmortem, Iron Finance Says It Suffered Crypto's First Large-Scale Bank Run – CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/06/17/in-token-crash-postmortem-iron-finance-says-it-suffered-cryptos-first-large-scale-bank-run"},{"credibility":2,"name":"Bank Run in DeFi – Iron Finance Fiasco Explained – Finematics","type":"research","url":"https://finematics.com/bank-run-in-defi-iron-finance-explained/"}]},{"content":"","heading":"Mark Cuban's Involvement and Regulatory Response","severity":"high","sources":[{"credibility":2,"name":"Mark Cuban Calls for DeFi Regulation After Crypto Investment Goes to Zero – Decrypt","type":"news_article","url":"https://decrypt.co/73861/mark-cuban-titan-defi-crypto-regulation"},{"credibility":1,"name":"Mark Cuban Calls for Stablecoin Regulation After Trading Token That Crashed to Zero – Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2021-06-17/mark-cuban-defi-iron-finance-crashed-100"},{"credibility":2,"name":"Iron Finance's DeFi bank run — and why Mark Cuban got 'rekted' – Forkast","type":"news_article","url":"https://forkast.news/iron-finances-defi-bank-run-why-mark-cuban-got-rekted/"},{"credibility":2,"name":"Mark Cuban calls for stablecoin regulation in wake of Iron Finance 'bank run' – CoinTelegraph via Investing.com","type":"news_article","url":"https://www.investing.com/news/cryptocurrency-news/mark-cuban-calls-for-stablecoin-regulation-in-wake-of-iron-finance-bank-run-2536642"}]},{"content":"","heading":"Design Flaws and Rug Pull Allegations","severity":"critical","sources":[{"credibility":2,"name":"Iron Finance Denies Rug Pull After Token Collapse – CryptoBriefing","type":"news_article","url":"https://cryptobriefing.com/iron-finance-denies-rug-pull-after-token-collapse/"},{"credibility":2,"name":"Iron Finance Titan Post-Mortem Analysis – Omniscia","type":"research","url":"https://medium.com/@omniscia.io/iron-finance-titan-post-mortem-analysis-f1d3fd1abbc9"},{"credibility":1,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – Federal Reserve","type":"regulatory","url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"credibility":2,"name":"Iron Finance bank run stings investors — A lesson for all stablecoins? – CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/iron-finance-bank-run-stings-investors-a-lesson-for-all-stablecoins"}]},{"content":"","heading":"Scale and User Impact","severity":"critical","sources":[{"credibility":2,"name":"Iron Finance TVL Stats & Charts – DeFiLlama","type":"on_chain","url":"https://defillama.com/protocol/iron-finance"},{"credibility":1,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – Federal Reserve","type":"regulatory","url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"credibility":2,"name":"Iron Finance Implodes After 'Bank Run' – The Defiant","type":"news_article","url":"https://thedefiant.io/news/defi/iron-finance-implodes-after-bank-run"},{"credibility":2,"name":"A DeFi Bank Run: Iron Finance, IRON Stablecoin, and the Fall of TITAN – SSRN","type":"research","url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3888089"}]},{"content":"","heading":"Academic and Regulatory Scrutiny","severity":"high","sources":[{"credibility":1,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – Federal Reserve","type":"regulatory","url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"credibility":2,"name":"A DeFi Bank Run: Iron Finance, IRON Stablecoin, and the Fall of TITAN – SSRN (Saengchote)","type":"research","url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3888089"},{"credibility":2,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – SSRN (Adams & Ibert)","type":"research","url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4127181"}]}],"sources_used":[{"credibility":2,"name":"Iron Finance Post-Mortem 17 June 2021 – Iron Finance Medium","type":"official","url":"https://ironfinance.medium.com/iron-finance-post-mortem-17-june-2021-6a4e9ccf23f5"},{"credibility":2,"name":"Iron Finance Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Iron_Finance"},{"credibility":1,"name":"Iron Finance's Titan Token Falls to Near Zero in DeFi Panic Selling – CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/06/17/iron-finances-titan-token-falls-to-near-zero-in-defi-panic-selling"},{"credibility":1,"name":"In Token Crash Postmortem, Iron Finance Says It Suffered Crypto's First Large-Scale Bank Run – CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/06/17/in-token-crash-postmortem-iron-finance-says-it-suffered-cryptos-first-large-scale-bank-run"},{"credibility":2,"name":"Mark Cuban Calls for DeFi Regulation After Crypto Investment Goes to Zero – Decrypt","type":"news_article","url":"https://decrypt.co/73861/mark-cuban-titan-defi-crypto-regulation"},{"credibility":1,"name":"Mark Cuban Calls for Stablecoin Regulation After Trading Token That Crashed to Zero – Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2021-06-17/mark-cuban-defi-iron-finance-crashed-100"},{"credibility":1,"name":"Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel – Federal Reserve FEDS Notes","type":"regulatory","url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"credibility":2,"name":"A DeFi Bank Run: Iron Finance, IRON Stablecoin, and the Fall of TITAN – SSRN (Saengchote)","type":"research","url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3888089"},{"credibility":2,"name":"Runs on Algorithmic Stablecoins – SSRN (Adams & Ibert)","type":"research","url":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4127181"},{"credibility":2,"name":"Iron Finance Denies Rug Pull After Token Collapse – CryptoBriefing","type":"news_article","url":"https://cryptobriefing.com/iron-finance-denies-rug-pull-after-token-collapse/"},{"credibility":2,"name":"Iron Finance Titan Post-Mortem Analysis – Omniscia","type":"research","url":"https://medium.com/@omniscia.io/iron-finance-titan-post-mortem-analysis-f1d3fd1abbc9"},{"credibility":2,"name":"Bank Run in DeFi – Iron Finance Fiasco Explained – Finematics","type":"research","url":"https://finematics.com/bank-run-in-defi-iron-finance-explained/"},{"credibility":2,"name":"Iron Finance Implodes After 'Bank Run' – The Defiant","type":"news_article","url":"https://thedefiant.io/news/defi/iron-finance-implodes-after-bank-run"},{"credibility":2,"name":"Iron Finance bank run stings investors – CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/iron-finance-bank-run-stings-investors-a-lesson-for-all-stablecoins"},{"credibility":2,"name":"Iron Finance TVL Stats & Charts – DeFiLlama","type":"on_chain","url":"https://defillama.com/protocol/iron-finance"},{"credibility":2,"name":"Iron Finance's DeFi bank run — and why Mark Cuban got 'rekted' – Forkast","type":"news_article","url":"https://forkast.news/iron-finances-defi-bank-run-why-mark-cuban-got-rekted/"},{"credibility":2,"name":"Analysis of the TITAN fall – Jeiwan.net","type":"research","url":"https://jeiwan.net/posts/analysis-titan-fall/"}],"summary":"Iron Finance was a multi-chain algorithmic stablecoin protocol deployed on Polygon and Binance Smart Chain in early 2021, best known for its IRON stablecoin partially collateralized by the protocol's native TITAN token. In June 2021, large token holders began liquidating their TITAN positions, triggering a negative feedback loop that drove TITAN from approximately $65 to near zero in a matter of hours and is widely cited as the first large-scale bank run in DeFi history. Estimated user losses reached approximately $2 billion, and the incident prompted prominent investor Mark Cuban — who publicly held positions in the protocol — to call for stablecoin regulation.","timeline":[{"date":"2021-03-01","event":"Iron Finance initially launches on Binance Smart Chain with the STEEL token as native collateral for IRON stablecoin.","source":"Iron Finance Wikipedia; CryptoCurrency Wiki","source_url":"https://en.wikipedia.org/wiki/Iron_Finance"},{"date":"2021-05-18","event":"Iron Finance expands to Polygon, launching the TITAN token as the Polygon-side collateral for IRON stablecoin.","source":"Iron Finance Medium — Expansion to Polygon","source_url":"https://ironfinance.medium.com/iron-finance-expansion-to-polygon-8a714ba5635e"},{"date":"2021-06-09","event":"TITAN reaches $1 billion TVL milestone on Polygon; the protocol publishes a celebratory announcement.","source":"Iron Finance Medium — TVL milestone","source_url":"https://ironfinance.medium.com/forged-in-fire-iron-reaches-1b-tvl-milestone-3ec4f9193d62"},{"date":"2021-06-13","event":"Heavy social media promotion drives additional capital into Iron Finance; TITAN begins its final ascent fueled partly by notable endorsements including Mark Cuban.","source":"Federal Reserve FEDS Notes — Runs on Algorithmic Stablecoins","source_url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"},{"date":"2021-06-15","event":"Iron Finance TVL on Polygon peaks above $3 billion. TITAN reaches an all-time high of approximately $65.","source":"DeFiLlama; CoinDesk","source_url":"https://defillama.com/protocol/iron-finance"},{"date":"2021-06-16","event":"Around 10:00 UTC, large liquidity providers begin removing IRON/USDC liquidity and selling TITAN positions. TITAN drops from approximately $65 to $30 within roughly two hours. IRON breaks its $1 peg, falling toward $0.75. Redemption arbitrage activates, triggering continuous TITAN minting and a death spiral.","source":"Iron Finance Post-Mortem; CoinDesk","source_url":"https://ironfinance.medium.com/iron-finance-post-mortem-17-june-2021-6a4e9ccf23f5"},{"date":"2021-06-17","event":"TITAN collapses to near zero (recorded low approximately $0.000000035). IRON stablecoin loses most of its TITAN collateral backing. Iron Finance publishes a post-mortem characterizing the event as the 'world's first large-scale crypto bank run.' Estimated user losses reach approximately $2 billion.","source":"Iron Finance Post-Mortem; CoinDesk; CoinGecko","source_url":"https://ironfinance.medium.com/iron-finance-post-mortem-17-june-2021-6a4e9ccf23f5"},{"date":"2021-06-17","event":"Mark Cuban publicly discloses losses from the TITAN collapse and calls for stablecoin regulation, stating 'There should be regulation to define what a stable coin is and what collateralization is acceptable.'","source":"Bloomberg; Decrypt","source_url":"https://www.bloomberg.com/news/articles/2021-06-17/mark-cuban-defi-iron-finance-crashed-100"},{"date":"2021-11-01","event":"The U.S. President's Working Group on Financial Markets publishes a report recommending Congress enact legislation limiting stablecoin issuance to insured depository institutions, citing risks analogous to those demonstrated by the Iron Finance collapse.","source":"President's Working Group Report on Stablecoins","source_url":"https://home.treasury.gov/system/files/136/StableCoinReport_Nov1_508.pdf"},{"date":"2022-06-02","event":"The Federal Reserve publishes 'Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel,' a transaction-level analysis of the collapse concluding that design flaws in the no-arbitrage mechanism were central to the failure.","source":"Federal Reserve FEDS Notes","source_url":"https://www.federalreserve.gov/econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.html"}]},"v":1}