What Is Birthday Cake (BDAY)?
Birthday Cake is a decentralized borrowing protocol on the Polygon network which allows users to borrow the PUSD stable coin against the MATIC token at 0% interest. PUSD is obtained by staking Matic and used to pay out loans on the Poly Quity protocol. At any time it can be redeemed against the underlying collateral at face value. The integration with Iron Swap will enable PUSD users to swap at low swap fees and up to 100X smaller slippage compared to other DEXes like Quick Swap and Sushi Swap on the Polygon network.
Public distrust with centralised financial institutions has grown as currencies around the world continue to debase over time. Blockchain technology enables complete transparency rather than centralised control, allowing for an unbiased, highly-efficient, permission less global financial system that better serves the public good.
While Bitcoin, Ethereum, Polygon(MATIC), and others succeed as a crypto-currency on varying levels, their price volatilities do not lend themselves to be an optimal medium of exchange.Contrarily, IRON brings value because it is designed to minimize price volatility.
Birthday Cake Storage Key Points
|Coin Name||Birthday Cake|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
IRON aims to be money with a stable, consistent, and predictable value that provides exposure to all crypto backing it. It is decentralized, unbiased, collateral-backed, and soft-pegged to the US Dollar. A store of value is an asset, commodity, or currency that maintains its value without depreciating. Because IRON is a stable coin, it is designed to function as a store of value, even in volatile markets.
IRON as a Medium of Exchange
Birthday Cake A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties. IRON aims to be the medium of exchange in the decentralized, non-custodial ecosystem of DeFi products, protocols, and use cases that make up Iron Finance.
IRON as a Unit of Account
A unit of account is measurement for value, used to assign value to goods and services. IRON currently has a target price of 1 USD. While IRON is not used as a standard measure of value off-chain, IRON functions as a unit of account within the Iron Finance protocol and some blockchain dapps. IRON is required to settle debts given in IRON in order to receive back one’s supplied collateral in Iron Lend.
Alternatively, IRON can borrowed on Birthday Cake by various crypto-native collateral assets, and is able to exist without a central authority or administrator that may abuse its influence. Being over collateralized, IRON effectively removes bank-run risks resulting from price risk (such as loss of $1 peg). Over collateralize ensures FULL redeemability, as IRON can and will always be treated at face value of $1 when minting or redeeming.
An additional benefit of borrowing IRON is that one can keep their exposure to the collateral provided. In other words, one doesn’t have to sell their crypto assets to obtain USDC and mint IRON. Additionally, those collateral assets accrue interest by providing supply to Iron Lend.
Collateral Factors may change based on the needs of the protocol and governance initiatives. Always consult Key Parameters to be conscious of borrow limits and liquidation risks. We have reintroduced the very straightforward stable coin mint/redeem mechanism (0.5%/0.9% fee, respectively where accumulated fees can go to governance stakers). They will keep the stable coin over collateralized thus low-risk.
Supply Cap & Stability Mechanisms
IRON will have a supply cap of 50M at launch and will be increased as we grow. You can mint or redeem the IRON stable coin whenever there is an arbitrage opportunity. The mint/redeem mechanism has a 0.5%/0.9% fee, respectively, where accumulated fees go to governance stakers. To remain decentralized, Birthday Cake cannot rely on a central entity to perform the liquidation but needs to incentivize other players to liquidate the collateral, repay the borrowed funds, and in return receive the collateral in another asset with some discount.
Liquidations are the results of unsuccessful bets and are highly correlated with steep changes in prices of underlying tokens. The changes cause borrowers that bet on the “wrong side” of the change to exceed their borrowing quota allowed by their collateral, leading to under-collateralization (in other words, the collateral becomes worth less than the borrowed amount) and become subject to liquidation.