Price Stability
The IRON token’s price stability is supported by multiple mechanisms. The main pillar of 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 when there is a profitable arbitrage opportunity.
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 when there is a profitable arbitrage opportunity.
Last modified 5mo ago
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