1/ In our fourth issue of Terra’s Project Spotlight, we’re thrilled to introduce @pylon_protocol --  a yield-based saving, payment, and launchpad platform built on Terra.

2/ Pylon is the 5th app incubated by the TFL team, following Chai, Mirror, Anchor, & Nebula. Pylon similarly infuses itself with the theme of “looking outwards,” where adoption, accessibility, & use cases that appeal to the average user are powered by Terra’s DeFi ecosystem
3/ The idea enshrined in Pylon is to swap “payments-in-principal with payments-in-cashflow” using Anchor’s high-yield, low-volatility deposit rate.

Anchor’s ability to unlock new dimensions for user engagement with products and services is powerful.
4/ Pylon unlocks a new suite of options for payments, philanthropy, patronage, investments, rentals, and savings, reimagining long-term relationships and incentive contracts b/w payers & payees, consumers & creators, patrons & artists, and investors & entrepreneurs.
5/ Wielding the phrase “Deposit Money, Spend Yields,” Pylon’s ambitions reflect the idea that principal-protected yield payments of stablecoins erode the notion of short-term payments of principal enduring as the status quo.
6/ Fusing the advantages of stablecoins, the high-yields of Anchor, and the composability of DeFi Pylon ushers in a new primitive of incentive alignment — “no-fee” products and services or “lossless,” value-additive investments.
7/ Pylon consists of two primary groups: creators/sellers & users.

Creators are anyone that issues a product, seeks fundraising, or provides some type of service to an audience of patrons.
8/ Users engage with the deposit contract directly by depositing UST, earning deposit provider tokens (for short, “DP tokens,” analogous to LP tokens) representing a stake in the investment relative to the size of UST deposited.
9/ 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.
10/ Pylon contains 3 core products:

1. Pylon Gateway (Launchpad)
2. Pylon Widget
3. Pylon Dashboard (Web App)
11/ The initial Pylon-integrated product will be the Pylon Gateway, a yield-funded launchpad for projects building on Terra. The Pylon Widget is the protocol’s Swiss Army Knife, providing a tool easily integrated into existing applications — both crypto-native and non-crypto.
12/ The Widget will be accompanied by an SDK, providing product or service providers of various types with a seamless ability to introduce yield-based payments, savings, and investing into their application or community of patrons.
13/ Pylon’s WebApp Dashboard allows users to easily trade and stake Pylon’s native utility tokens, vote on community governance proposals, engage with the Pylon community, and propose ideas for future platform growth.
14/ Pylon opens up a world of possibilities & can be customized for both crypto and mainstream audiences, providing individuals with a fresh way to launch projects and provide services to an audience of patrons.

• • •

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More from @terra_money

26 May
1/ Terra’s integration with @WalletConnect — open-source protocol designed for dapp<>wallet connectivity — is now live, enabling users to access full Anchor, Mirror & Terra Bridge functionality through Terra Station.
2/ By deep linking each web application with Terra Station mobile, @WalletConnect enables users to simply manage their assets across the entire Terra ecosystem on the go.

Download Terra Station mobile & connect your wallet on the front page of the Anchor/Mirror/Bridge web app👇
Read 5 tweets
26 May
1/ A great video clarifying by YouTuber CryptoCents on some of the misconceptions around TerraUSD ($UST) and how the broader Terra economy works.

Check out his profile and give this man a follow #LUNAtics.

2/ “LUNA is not an asset that explicitly collateralizes UST -- it simply absorbs the short-term volatility of UST.”

UST is backed by the demand for the Terra ecosystem, not explicitly the asset price of LUNA collateralizing the system.
3/ Hence, why an FDNV of LUNA approaching the outstanding liabilities of circulating UST does not trigger a “death spiral” bank run characteristic of traditional endogenous collateral models.
Read 35 tweets
24 May
1/ Extreme volatility produced a series of collateral effects across the Terra ecosystem, primarily derived from the short-term peg deviation of $UST and its impact on the volatility of $LUNA and levers of the Terra protocol. There’s a lot to unpack, so let’s dive in 👇
2/ Let’s start with the basics. The Terra protocol mechanism is quite simple:

When the supply of Terra stablecoins (like UST) goes up, the LUNA supply goes down.

When the supply of Terra stablecoins goes down, the LUNA supply goes up.
3/ As an algorithmic stablecoin network, Terra is akin to a decentralized, open-source central bank.

Read 30 tweets
21 May
1/ Following an active day of community discussion around prop 82, the community has spoken.

2/ With the threshold currently passed and roughly 96% of votes reporting "No," the community pool will be swapped out for $UST after Columbus-5 and used to bootstrap Ozone. More details will follow after the conclusion of the current voting period.
3/ The community's decision reflects the idea that community-funded growth from the treasury for a blossoming DeFi ecosystem on Terra is the optimal path forward for the network to maximize value and adoption in the long term.
Read 9 tweets
23 Feb
For the first time in Terra’s history, seigniorage distribution to the validators/delegators and the community pool has occurred due to the sharp increase in UST demand -- equating to 24 million LUNA. This is NOT newly minted LUNA.
For some context, the Terra blockchain records "decreased LUNA supply during a week" as accrued seigniorage. The seigniorage is spent in two ways:
1. Oracle rewards: distributed to validators + delegators as staking rewards => increase staking rewards (released over 52 weeks).

2. Community pool: the treasury for the community.
Read 16 tweets
6 Feb
As @mirror_protocol gains traction, it’s important to denote the mutually beneficial relationship between Terra, LUNA stakers, and Mirror’s adoption. Rather than purely being a synthetic assets protocol, Mirror’s adoption accrues value to LUNA stakers.
How does it? Let’s follow UST, Terra’s USD-pegged stablecoin. At a high level, Terra’s LUNA collateralizes its cadre of stablecoins, including UST.
When UST is trading above $1, arbitrageurs can burn $1 of LUNA to mint 1 UST and sell UST on the open market for a profit. When UST trades below $1, then arbitrageurs can buy UST on the market at a discount, and swap it for $1 worth of LUNA.
Read 20 tweets

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