How Much Did Mark Cuban Lose On Titan

Another day, another decentralized finance (DeFi) protocol has taken a hitting.

Non merely a DeFi project, but an algorithm stablecoin has concluded upward crashing. Algorithmic stablecoins use algorithms to balance the circulating supply of the asset, but they have failed to maintain their peg and flourish.

Just concluding week, Polygon-based DEX QuickSwap Malt Stablecoin (MALT) concluded up losing its $1 peg to fall to 0.18.

MALT is a yield farming incentive-axial algorithmic stablecoin that uses bonding LP mechanisms along with Arbitrage auctions to stabilize.

On Wednesday, some other Polygon-based algorithmic stablecoin projection, Fe Finance’s token TITAN, lost 100% of its value. The price of TITAN rallied in a higher place $64 high merely to autumn directly to goose egg.

IRON too lost its peg to autumn from $ane to $0.615 and at present trades at $0.69.

most brutal chart i’ve ever seen, log nautical chart of $titan on the m1 pic.twitter.com/fFeUNX32Ph

— tilopa (@youngtilopa) June sixteen, 2021

Atomic number 26 Finance is a partially collateralized token that is soft pegged to the USD. The projection is really a fork of FRAX stablecoin and popularized by Twitter, peculiarly billionaire investor Mark Cuban, who recently revealed that he had been involved in it.

In a blog post on Sun, he shared that he has been providing liquidity for DAI/ TITAN on QuickSwap.

Recently, Cuban also joined a panel discussion at the DeFi Superlative virtual conference, where he said Polygon (MATIC) is “destroying everybody else” as it is “getting and so much momentum,” making it “hard to catch up” for others.

“Valuing tokens is easier and makes more sense than you think” – Mark Cuban, two days before suffering a 99.9% loss. https://t.co/O1Lf31arnj

— Alex Krüger (@krugermacro) June 16, 2021

While it was believed Cuban lost millions of dollars as an LP, he doesn’t seem to take suffered losses.

“I got hit similar everyone else. Crazy office is I got out, thought they were increasing their TVL enough. Than Bam,” said Cuban in response to the question if he “rugged CT or himself got rugged on IronFinance.”

Instead of an exploit, the incident seems to be similar to a depository financial institution run where people proceed to greenbacks out, sending the prices of the token falling until it couldn’t go down anymore.

“Could be an exploit just unlikely, other protocols broke in the same mode without any bad actor,” noted @0xSisyphus. “Pretty sure the machinery it bankrupt thru is b/c people sold titan for other reasons, and that meant in that location wasn’t enough value contained in titan to fully repay the iron holders.”

One failed redemption mechanism and everyone suddenly becomes an algostable Ponzi expert

It has to exercise with how CR works – the protocol gives u $one of “value” merely a portion of that -25%- is in titan money. When the Ponzi turns, titan supply rapidly inflates as information technology loses $ value

— Sisyphus (@0xSisyphus) June 16, 2021

In that location are two tokens at play hither, IRON and TITAN.

USD-pegged stablecoin USDC is deposited in the protocol when a user mints the IRON token while TITAN, which is used for minting, is burned. When the user redeems Fe tokens, the protocol pays back USDC and mints the required amount of TITAN tokens.

“It has a circulating supply of 0 TITAN coins and a max supply of 27.eight Trillion,” states CoinGecko.

The drib in TITAN’south cost, after people started selling, caused IRON to lose its peg, which in plough sent the TITAN price crashing, and the whole wheel continued.

Iron Finance protocol noted on Twitter that because the cost of TITAN fell to 0, the contract didn’t allow for whatsoever redemptions and will take at least 12 hours for the timelock to pass earlier USDC redemptions are possible over again.

“Redeeming IRON for USDC will resume at 5 PM UTC,” tweeted the team on Thursday and asked users to remove liquidity from DND/BNB and DND/Fe pairs.