Iron Finance bank run stings investors — A lesson for all stablecoins?

[Tnoy30]

The Iron Finance stablecoin fiasco caused cries for regulation and shed light on the importance of complete collateralization.
The cryptoverse has been overrun with negative events lately. One of the most recent ones was the Iron Finance bank run that occurred on June 16. Iron Finance is a multi-chain, partially collateralized stablecoin protocol with the main goal of providing a dollar-pegged stablecoin to be used for DeFi applications. It was the first large-scale bank run in the cryptocurrency market.

Iron Finance’s stablecoin, IRON, is a partially collateralized token soft pegged to the United States dollar and is available both on the Polygon network and the Binance Smart Chain (BSC). The collateralization of the coin is supported by two different tokens on each of these networks. On the Polygon network, it’s the USD Coin (USDC) and the TITAN token, while on the BSC, it’s collateralized by Binance USD (BUSD) and the STEEL token. The Polygon network and Iron Finance are both protocols supported by billionaire investor Mark Cuban.
Source: Iron Finance bank run stings investors — A lesson for all stablecoins?