Over the past few weeks, as market conditions worsened for crypto as a whole, TITAN and STEEL have stood out as gems. While the rest of the market fell, with BTC declining around 50% from its recent highs, TITAN and STEEL have both risen 1,000% in value in a relatively short period of time. These price movements make TITAN and STEEL two of the best performing bear-proof assets in the entire crypto market. In this article, we’re going to explain the reason behind this phenomenon.
Calling All Bears
As bearish sentiment continues to dominate the crypto markets, traders are selling their coins and looking for safe havens to park their funds. As a bonus, they can deposit their stables into yield-producing farms, or lend out their tokens to others looking to open leveraged positions. At the moment, TITAN and STEEL offer by far the best returns on stablecoin pairs, such as IRON/USDC and IRON/BUSD. It is also important to note that, IRON/BUSD has been offering one if not the absolute highest APRs for months now, ever since it launched on March 3, 2021. This explains the rapid influx of TVL to the Iron ecosystem, which recently eclipsed the $2B milestones!
You might be wondering, “how exactly do TITAN and STEEL offer the best yields?” In the yield farming space, there is a troubling trend of high APYs that inevitably decline along with the value of the governance token, often incredibly quickly. However, the Iron protocol was specifically designed to offer these high APYs in a more sustainable manner.
As a fractionalized stablecoin, using both TITAN and STEEL to capture value from all newly minted IRON, the key feature of the protocol is that the minting process which creates the IRON stablecoin requires a varying ratio of USDC and TITAN token (or BUSD and STEEL on BSC) and the TITAN or STEEL token, which is used in the IRON minting process is burned. This means that any influx of TVL into IRON farms creates an inherent and constant demand for both IRON and TITAN/STEEL, boosting the price of TITAN/STEEL (and thus the APY of the farms, making it even more incentivized). It’s a perfect flywheel.
Adding fuel to the fire, idle stablecoin collateral is deposited into a yield-producing vault, with all vault proceeds going to a TITAN or STEEL single token staking pool, receiving the profit share! These two features in tandem make TITAN and STEEL the most sustainable farms on the market, and this model solidifies both tokens as cycle-neutral assets as the demand for stable farms grows.
Benefits to Market Health
Traders who were around during the last bear cycle (2018–19) did not have the luxury of interest-bearing stablecoin farm opportunities, and instead had to turn to short the market with leverage — only worsening the poor market conditions. By offering attractive stable farming opportunities, traders have an alternative method of earning substantial yields — taking pressure off from the market and allowing it to recover faster. Meaning, our users have been enjoying one if not the highest yields and price stability, while watching the bear market from the safety of the sidetrack.
More Than Countercyclical
While STEEL and TITAN are countercyclical in this nature, there is something for every market in the IRON ecosystem. Positive market conditions are known to boost governance token values, which in turn could also boost the value of STEEL and TITAN, also increasing the APYs for the stable farms.
Remember that both TITAN and STEEL are paired in liquidity pools with native crypto assets that appreciate during bull markets, making TITAN and STEEL good investments during bull and bear markets alike.
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