pylon-protocol/core contracts define Pylon interest redirection logic, of which:

  • any UST deposited to the Pool contract is deposited to Anchor, and returned aUST from resulting contracts is held by this contract.

  • the Pool contract returns DP tokens (Deposit Provider tokens) instead, which are pegged 1:1 to UST.

  • the Pool contract queries new exchange_rate parameters from Anchor, and uses this information to calculate how much UST should be returned for DP token redemptions and interest redirection, respectively.

  • exchange_rate follows a virtual exchange rate parameter calculated by the Exchange Rate contract, which charges a 10% fee for all generated interest.

  • collected fees are sent to the pylon-protocol/token/collector contract to be used for MINE buybacks for MINE governance stakers.

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