This study examines the downfall of Iron Finance's algorithmic stablecoin in June 2021 and draws parallels with the Terra–Luna (UST) collapse in May 2022. Using transaction-level blockchain data, we dissect the events leading to Iron Finance's failure, unveiling algorithmic stablecoins’ inherent vulnerabilities. We highlight the disproportionate impact on retail investors, a pattern also mirrored in UST, where confidence erosion led to a similar destabilizing ‘bank run.’ Our analysis contributes to the broader understanding of the fragility of DeFi ecosystems and sheds light on the risks of adopting permissionless blockchains and algorithmic stablecoins as payment infrastructures and forms of digital money.

中文翻译：

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数字货币创建和算法稳定币运行

本研究考察了 Iron Finance 算法稳定币在 2021 年 6 月的崩溃，并将其与 2022 年 5 月 Terra–Luna (UST) 的崩溃进行了比较。使用交易级区块链数据，我们剖析了导致 Iron Finance 失败的事件，揭示了算法稳定币的崩溃固有的弱点。我们强调了对散户投资者的不成比例的影响，这种模式也反映在 UST 中，信心的侵蚀导致了类似的不稳定的“银行挤兑”。我们的分析有助于更广泛地了解 DeFi 生态系统的脆弱性，并揭示采用无需许可的区块链和算法稳定币作为支付基础设施和数字货币形式的风险。