Iron Finance is a stablecoin protocol. The Iron protocol features two tokens: IRON and STEEL.
STEEL - is an algorithmic token that accumulates seigniorage revenue and excess collateral value.
IRON is a stablecoin pegged to $1, partially backed by collateral such as BUSD, USDT, etc., and partially supported by the STEEL algorithm. The ratio between collateral and algorithmic support, known as the collateral ratio (CR), depends on the market price of IRON.
The ratio between collateral assets and algorithmic assets will depend on the market price of IRON. If IRON > $1, it means theres high demand for IRON in the market, and the system can decrease the CR to release more collateral. If IRON < $1, the demand for IRON in the market decreases, and the system gradually increases the CR towards 100%.