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UPDATE: In light of recent events with Terra Classic, Pylon Protocol is continuing to explore all possible options moving forward. We are committed to our vision of platforms built around yield redirection and deposit contracts.Please check our Twitter or Telegram for more updates and information on next steps.
This is where you will find all the essential information about Pylon Protocol, including documentation for the functional and technical aspects of Pylon Protocol's core products.
This is a live document that will be updated as the protocol evolves over time via governance.
Pylon Protocol consists of a suite of savings and payments products in decentralized finance (DeFi) that builds on low-volatile yield-bearing protocols, notably Anchor, to provide services powered by user deposits. Pylon enables sustainable exchanges between long-term value providers and their consumers through customizable deposit contracts and yield redirection.
As a promising future standard of programmable payments, Pylon introduces a new paradigm of incentive alignment between payers and payees, consumers and creators, patrons and artists, investors and entrepreneurs, borrowers and lenders, and many more groups and relationships.
The protocol is maintained by various independent platforms and is governed by holders of Pylon's native governance token also known as $MINE.
In a conventional value transfer model, a seller offers some good or service and a buyer pays with money or barter. While this model works well for immediate and one-off transactions, it fails to effectively capture value for transactions over a sustained period of time involving recurring services and consumption. Consider the following cases:
- 1.Sellers of future value or unascertained goods (early-stage startups, crowdfunding, initial coin offerings, etc.) may not be incentivized to deliver value over time if they receive all the funds upfront.
- 2.Sellers of intangible value (artists, musicians, livestreamers, content creators, etc.) may struggle to monetize their niche creative content offerings and receive steady payouts that reflect fanbase growth over time.
- 3.Sellers of recurring value (content IP, SaaS software, subscription-based services, etc.) may need to rely on discounts to fair value to reduce churn.
- 4.Lenders of illiquid assets (real estate, cars, luxury items, etc.) may lack a venue to securely lease their assets over time and be provided with proper recourse for contract violations.
Pylon provides each of these parties with the technical toolkit necessary to readjust their payments options and accommodate long-term services that garner value with the growth of an active customer base. Pylon aspires to build a wide array of consumer-friendly payments and savings platforms that integrate complex DeFi payments infrastructure via simple user deposits.
Pylon unlocks a new suite of options for payments, patronage, investments, rentals, and savings. When realized as a payments gateway, Pylon is a principal-protected payment product where users can finance recurring services (i.e. subscriptions, memberships, content offerings) via "key money" deposits and consistent interest payouts.
Most simply put, users can deposit Terra native assets and spend accrued yields on platform services and content offerings. Upon subscription expiry, users can withdraw their principal in full. Platforms can easily integrate the "Deposit with Pylon" widget in 10 lines of code.
By making a simple retrievable deposit, users essentially receive "no-fee" subscription services; contribute to charity and academic research in perpetuity; support their admired artists and gain access to gated content and NFT airdrops; rent cars and condos with their principal as collateral; enter raffles and mystery box giveaways with prize savings accounts; and make "lossless" investments in startup blockchain projects with all the upsides of being an early investor.
By "principal-protected" and "lossless," this means a guarantee of minimum return equal to the investor's amount, not value, of initial investment. For instance, if a user deposits 10 LUNA and yields from the token are redirected to a third-party beneficiary for a certain period of time, a user can later retrieve the underlying 10 LUNA, although the value of the token may fluctuate.
Reimagining the future of recurring payments and providing convenient platform integrations for the mainstream adoption of crypto, Pylon aims to become a must-have feature of the DeFi future. Forthcoming Pylon innovations plan to stretch the design space for programmable payments and represent an exciting paradigm shift for real-world DeFi applications.
Rather than limiting itself to a single platform, Pylon intertwines a series of decentralized, modular payments and savings gateways. Pylon's core products include a project launchpad, yield-integration widget, and a dashboard for staking rewards. Pylon's products are configured in a way that allows for the entire platform to maintain decentralized governance by MINE token holders, while continuing to innovate with platform integrations.
Pylon Protocol WebApp
"Deposit with Pylon" Widget
Pylon will soon be launching a widget and SDK which new and existing platforms can simply integrate into their payment options. This would allow users on any crypto-friendly site to pay for services via user deposits and automatically redirect yield to creators and platforms.
"You Must Build Additional Pylons..."
Forthcoming platforms building on Pylon Protocol span the range of applications in philanthropy, arts and entertainment, hospitality and tourism, real estate, savings accounts, sweepstakes, as well as other recurring subscriptions and membership programs.
Terraform Labs and Pylon's core team is currently developing a second flagship product which aims for mainstream adoption, planning to launch in Q3.
Further documentation of Pylon Protocol is provided in the following pages.
- Read up on the specifications and descriptions of Pylon's main offerings
- Check out Pylon's core smart contracts and the mechanics of deposit provider contracts
- Find out how to invest in Pylon's native governance token MINE via Pylon Gateway
- Engage in governance and Pylon's forum through governance proposals
- Learn about the mechanics behind the yield-generating protocols that support Pylon
- Discover forthcoming service provider platforms powered by Pylon's payments-via-deposits