STEEL meets DiamondHand: Premiering the world’s first partial-collateralized synthetic assets

Iron Finance
3 min readApr 5, 2021

DiamondHand Introduction

The DiamondHand is another experimental innovation aimed at expanding the Iron Finance ecosystem with a synergy effect for STEEL and IRON. In brief, DiamondHand (DH) is a product for creating decentralized synthetic tokens pegged to cryptocurrencies like BTC, ETH, BNB, ADA, DOT, LINK and others by using the partial-collateralized design concept which was proven to work admirably well with the IRON stablecoin.

Tokens

  • Diamond (DND) is the native token of DH that accrues seigniorage revenue and excess collateral value
  • Synthetic tokens (dTokens) are tokens pegged to the price of actual cryptocurrencies like BTC, ETH, BNB, ADA, DOT, LINK and others

Collateral Ratios

  • Similar to the IRON protocol, DiamondHand will use 2 different collateral ratios: Target Collateral Ratio (TCR) and Effective Collateral Ratio (ECR) for each synthetic token.
  • TCR will be used while minting new synthetic tokens while ECR will be used during the redemption of synthetic tokens

The Diamond Castles

  • Comparable to the aforementioned Foundry feature of IRON, with DiamondHand we will have multiple Castles where users can stake DND and DND LP tokens to earn BTC, ETH, BNB, ADA, DOT every epoch.

DiamondHand objective

As the IRON protocol grows stronger, the main objective of DH is to popularize the usage of the IRON stable coin. While stablecoins have already proven their use in DeFi and broader, most synthetic assets are still in experimental phases and the market is totally underdeveloped.

The supply of major cryptocurrencies like BTC, ETH, BNB, ADA, DOT on the Binance Smart Chain is very limited as it most often requires several steps to transfer them. With DH we introduce a decentralized solution to scale up volume of these popular coins by using our partial collateralized design where synthetic token supply will be partially backed by other liquid tokens and partially by the DND token.

Each synthetic token will have a test period incentivized by liquidity mining pools. If the adoption of a particular dToken is promising, we will make plans to extend the mining pool. If the adoption is low, we will close the pool and not extend the DND liquidity program for that particular dToken.

IRON protocol benefits from DiamondHand

  1. There will be a liquidity mining program where STEEL holders can participate and earn DND tokens.
  2. 10% of DND supply (1,000 DND in total) will be used as another income stream for IRON protocol by exchanging DND to collateral (BUSD) and depositing to IRON’s Minting pool. This 10% of DND supply will be vested over 2 years (read more in the next section)
  3. Increased liquidity for both STEEL and IRON tokens
The Iron Finance Ecosystem

Tokenomics

  • Total supply: 10,000 DND
  • IRON protocol: 1,000 over 24 months
  • Liquidity mining: 7,000 over 24 months
  • Treasury, development, costs: 2,000 DND over 24 months

Liquidity Mining

  • Kick-off on 9 April at 10am UTC at ValueDeFi vFarms
  • Start with the first two synthetic tokens: dBNB, dBTC
  • Diamond Castle first epoch will start 3 days after launch: 12 April at 1pm UTC

50/50 DND-BNB (DND liquidity pool)

  • Incentive: 2,000 DND
  • Duration: 24 months

40/60 STEEL-IRON

  • Incentive: 1,000 DND
  • Duration:24 months

50/50 dBTC-BTC

  • Incentive: 250 DND
  • Duration: 6 months (with further extension)

50/50 dBNB-BNB

  • Incentive: 250 DND
  • Duration: 6 months (with further extension)

Allocation of the remaining 3,500 DND for the next synthetic assets will be decided via community voting. New synthetic tokens will be added every few weeks. Stay tuned for more ecosystem developments!

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Iron Finance

Building a user-friendly, multi-chain stableswap and lending ecosystem. Community chat: http://discord.gg/ironfinance