Robust vanishing of all Lyapunov exponents for iterated function systems

Given any compact connected manifold $M$, we describe $C^2$-open sets of iterated functions systems (IFS's) admitting fully-supported ergodic measures whose Lyapunov exponents along $M$ are all zero. Moreover, these measures are approximated by measures supported on periodic orbits. We also describe $C^1$-open sets of IFS's admitting ergodic measures of positive entropy whose Lyapunov exponents along $M$ are all zero. The proofs involve the construction of non-hyperbolic measures for the induced IFS's on the flag manifold.