SEOUL, South Korea, June 21, 2021 /PRNewswire-PRWeb/ -- Pylon, a principal-protected, yield-based products and services protocol built on Anchor, officially launches, ushering in a new era of long-term value exchange. Pylon redefines the conventional one-off value exchange model by unlocking the vast potential of customizable deposit contracts and yield redirection. Pylon introduces a new incentive alignment primitive -- swapping out payments-in-principal for payments-in-cashflow.
"Pylon enables platforms and creators to build money legos and reshape their payment options via programmable yields," says Woojin Lim, Co-Founder and Project Lead for Pylon. "For users, the appeal is straightforward. By making a key money deposit that is later retrievable in full, users can access recurring services, project token farms, and exclusive content offerings. All without making a single direct payment."
Pylon was originally conceived by TFL CEO and Co-Founder Do Kwon in an Agora Research Forum post in early April. Incubated by the team at Terraform Labs (TFL), Pylon is powered by Anchor Protocol, a decentralized money market and savings protocol on Terra that offers 20% APY to depositors and accepts liquid staking derivatives as collateral for borrowers.
Pylon creates a more sustainable long-term value exchange model by allowing anyone to create customizable, principal-protected deposit contracts that divert the yield from Anchor UST (aUST) to the addresses prescribed by the contract. As a result, sellers of future value or unascertained goods (e.g., early-stage startups), intangible value (e.g., musicians), recurring value (e.g., SaaS providers), and lenders of illiquid assets (e.g., real-estate) can accrue yield-based cashflow via Anchor from patrons in a manner conducive to long-term incentive alignment.
Users deposit Terra's UST stablecoin into deposit contracts of providers, with the yield diverted to the project or creator under the terms explicitly specified in the contract. Critically, user deposits are principal-protected, meaning that they can pay for subscription-based services in a "no-fee" model or even invest in a "lossless" manner where payment is rendered via cash flow rather than upfront expenditure -- inducing a new mechanism for value-additive investing.
The Pylon Widget and SDK will enable sellers to embed deposit contracts into applications, unlocking yield-based products and services for their users. For example, Alice can deposit UST into a deposit contract for her Netflix subscription, where the cost is absorbed entirely from the yield generated by Anchor -- her initial deposit is left untouched and is easily retrievable.
Pylon will initially launch with Gateway, a yields-based IDO Launchpad platform on Terra that enables custom deposit contracts for whitelisted IDO projects. Investors receive deposit provider tokens (for short, "DP tokens," analogous to LP tokens) proportional to the yield generated from their initial deposit, with DP tokens representing a stake in the investment relative to the size of UST deposited. DP tokens can be redeemable for UST (the original deposit) and could be used to claim project tokens or access different services -- just like a membership badge/card.
Projects can receive programmatic cashflows from investor deposits to bootstrap liquidity and capital for their roadmap, while investors receive "lossless" yield-based upside exposure to startups building in the Terra ecosystem. This induces superior long-term incentive alignment relative to incumbent IDO platforms since investors can withdraw their principal should projects stray from initial mandates and contract terms.
Moving forward, Pylon will expand its impact to the mainstream, ushering in a creative design space that envelops the endless possibilities of payments-in-cashflow. Potential use cases include improved monetization of a musician's supporters, revamped content paywall structures, and more effective community treasury management. Pylon's launch will be accompanied by the protocol's native governance and value accrual token, $MINE, which is designed to scale with Pylon's growth.
"With Pylon, we plan to open up a new design space for DeFi payments bridging Fintech and TradFi," concludes Lim. "As for possible use cases, the sky's the limit."
For media inquiries, please contact Nick Rodriguez at (310) 260-7901 or Nick(at)MelrosePR(dot)com.
About Pylon
Pylon is a general-purpose framework for principal-protected, yield-based products and services that extends Anchor's feature set to the vast potential of customizable deposit contracts and yield redirection. Pylon is powered by Anchor, a low-volatility savings protocol that generates stable yields of ~20% per annum -- passing borrowers' staking rewards onto lenders. All funds entering Pylon (UST) are automatically deposited into Anchor (aUST) to generate stable yields. Pylon includes the Pylon SDK and Widget, alongside Gateway -- a yields-based IDO Launchpad on Terra.
Media Contact
Nick Rodriguez, Melrose PR, (310) 260-7901, [email protected]
SOURCE Pylon
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