Pylon Protocol
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Overview
Deposit with Pylon
Pylon builds on Anchor's fully decentralized fixed income standard to open up a new design space for payments for services via retrievable key stablecoin deposits and yield redirection.
- 1.Users deposit Terra stablecoins and access platform-specific services.e.g. 1 > Investor Zerg deposits $100K UST into Pylon Gateway in return for $MINE token rewards over a vesting period of 12 months. e.g. 2 > Collector Mirror deposits $500 UST via the "Deposit with Pylon" widget to support the artwork of Artist Anchor
- 2.Creators receive stable yield payouts for providing recurring services.e.g. 1> Project team Protoss receives funding via payouts-in-yield generated by Zerg's deposit over the vesting period of 12 months. e.g. 2 > Artist Anchor receives consistent yield stipends to support their creative artwork without having to worry about financing their work.
- 3.Upon subscription expiry, users withdraw their principal in full.e.g. 1 > Investor Zerg is issued a full refund of $100K UST after 12 months in addition to $MINE token rewards, which Zerg can claim beginning 6 months into the vesting period. e.g. 2 > Collector Mirror receives back the $500 UST deposit (or may decide to donate it to Artist Anchor to provide patronage in perpetuity) while also claiming NFT airdrops, exclusive tickets to virtual tours, meet-and-greets, and perhaps even physical merch.
Protocol Participants
The main participants that exist in the Pylon ecosystem include users (payers), creators (value providers), platforms, MINE investors, MINE stakers, and MINE liquidity providers.
Users
Users are the payers who deposit stablecoins in return for a particular service, content offering, exclusive membership, or other staking rewards. Depending on specific platform integrations, users can be interchangeably referred to as customers, investors, patrons, fandoms, donors, consumers, or borrowers.
Creators
Creators are the value providers of a service who receive regular interest payouts via Anchor. Depending on specific platform integrations, creators can be interchangeably referred to as suppliers, project teams, artists, popular influencers, beneficiaries, producers, or lenders.
Platforms
Platforms are the forums of exchange that facilitate long-term transactions between users and creators. Platforms can integrate Pylon's deposit-to-pay mechanism to pay creators via user deposits. Pylon's open source Payments-as-a-Service SDK can be integrated in 10 lines of code.
Investors
MINE investors are early investors of the protocol who stake UST for a designated vesting period in return for MINE rewards. On Pylon Gateway, there are three Pylon Pools for MINE with different cliff and vesting periods where investors can stake UST for MINE, and one Pylon Swap pool for MINE where investors can swap UST for MINE with a lockup of 1 month.
Stakers
MINE stakers are holders of Pylon's native token MINE who are eligible to participate in governance, and receive voting power weighted by the amount of their total staked MINE. MINE stakers also earn staking rewards which grow linearly as more deposits are made into Pylon. MINE can be staked through the Pylon WebApp.
Regarding Pylon Gateway in particular, MINE stakers may gain access to exclusive pools for selected projects and may receive airdrops for project tokens launching on Pylon Gateway.
Liquidity Providers
MINE Liquidity Providers provide liquidity to the MINE-UST Terraswap Pair. They manage the initial bootstrapping of the exchange liquidity between MINE tokens and UST. MINE exchange liquidity is critical as MINE tokens are distributed as depositor and platform incentives.
Mechanism
Pylon Protocol builds on Terra's native savings standard via Anchor Protocol to provide a sustainable payments gateway. Later versions of Pylon Protocol will accommodate yield diversification by partnering with a number of different yield-bearing protocols within and beyond the Terra ecosystem.
Anchor Protocol
Anchor is a principal-protected low-volatility savings product that accepts Terra deposits and stabilizes the deposit interest rate. To generate yield, Anchor lends out deposits to borrowers who put down liquid-staked assets from diversified Proof-of-Stake blockchains as collateral and passes on a variable fraction of block rewards from collateral assets to depositors.
Tokens
Name
Type
Description
TerraUSD (UST)
Native Terra
Terra Stablecoin pegged to the US Dollar
Pylon Token (MINE)
CW20 Token
Governance token for Pylon Protocol
PylonDP Token
CW20 Token
Deposit receipt for Pylon Protocol (internal)
Last modified 5mo ago
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