what's Iron Bank?

Iron Bank is a decentralized lending protocol designed for protocol-to-protocol lending. It enables whitelisted trusted protocols to borrow funds without posting collateral, promoting capital efficiency across DeFi and CeFi ecosystems. Suppliers earn yield by providing liquidity to these markets, while borrowers access undercollateralized loans through a permissioned whitelist mechanism. The platform operates on multiple chains including Optimism, Ethereum, Avalanche, and Fantom. It features smart contract automation for isolated lending markets, reducing systemic risk compared to shared pool models. Iron Bank serves as a liquidity backstop, integrating with yield aggregators like Yearn and AMMs like Velodrome for enhanced utility.

Iron Bank recently experienced $27M in bad debt.