Iron Finance is a stablecoin protocol. The Iron protocol has 2 tokens: IRON and STEEL.
STEEL - is an algorithmic token that accumulates seigniorage revenue and excess collateral value.
IRON is a stablecoin pegged to $1, partly backed by collateral such as BUSD, USDT, and partly backed by the STEEL algorithm. The ratio of collateralization to the algorithm, the so-called collateralization ratio (CR), depends on the market pricing of IRON.
The ratio of collateralized assets to algorithmic assets will depend on the market price of IRON. If IRON > $1, it means that the market demand for IRON is high, and the system can release the mortgage by lowering CR. If IRON < $1, the market demand for IRON will decrease, and the system will gradually increase CR to 100%.