Introducing Pylon Protocol

limowooj 💎
Published in
4 min readMay 15, 2021


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, one-off transactions, it fails to effectively capture value for transactions over a sustained period of time involving recurring consumption.

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 funds upfront.

2. Sellers of intangible value (artists, musicians, livestreamers, content creators, etc.) may struggle to monetize their 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.

Enter Pylon Protocol.

Deposit Money, Spend Yields

Pylon consists of a suite of savings and payments products in Decentralized Finance (DeFi) that builds on stable yield-bearing protocols such as Terra’s Anchor Protocol in order 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.

Pylon aims to reimagine incentive alignment between payers and payees, consumers and creators, patrons and artists, investors and entrepreneurs, and many more relations. The protocol is maintained by various independent platforms and is governed by holders of Pylon’s native governance token.

Pylon for Payments

Pylon is a convenient principal-protected payments product designed for broad appeal beyond the world of crypto natives.

Making a payment with Pylon, for the user, consists in two simple steps:

  • Deposit Terra stablecoins for access to recurring services powered by platforms.
  • Withdraw your principal in full, base capital untouched, upon subscription expiry.

For the creator behind the scenes, using Pylon is even simpler:

  • Customize your funding options and receive stable, continuous yields generated from user deposits.

Consider the following that Pylon enables…

  • Instead of paying upfront for a year-long TV subscription, you can make an initial key money deposit to continue watching popular shows and movies for as long as you want without ever touching your base capital.
  • Simply by pledging to hold a deposit for your favorite artist, you can receive personalized NFT airdrops, access gated posts and concerts, and express your fanship via leaderboard.
  • In lieu of making a risky and highly volatile investment in a newly announced startup venture or a token launch, you can invest-via-deposits to farm tokens and secure investor rewards.
  • Imagine depositing stablecoins as collateral for you to rent virtual property, e-books, or game items without worrying about direct payments or incurring any losses at all.

By making a simple, affordable, and retrievable deposit, users of Pylon will be able to receive “no-fee” subscription services; contribute to charity and academic research in perpetuity; support their favorite artists to earn NFT airdrops and tiered fandom perks; rent cars and condos with their principal as collateral; enter no-loss games and mystery box giveaways with prize savings accounts; and make riskless investments in startup projects with all the upsides of being an early investor.

Pylon Launchpad

Pylon Gateway, a token launchpad for forthcoming projects on the Terra blockchain, will be Pylon’s first integrated use case and flagship platform.

For investors, Gateway provides an opportunity to make riskless investments while accessing all the upsides of pitching in early. Investors deposit principal-protected Terra stablecoins to a project of their choice in order to earn project tokens and governance rights. Investors may withdraw their full principal after a pledged lockup period to claim corresponding rewards.

For entrepreneurs and project teams, Gateway enables blockchain projects and early-stage ventures to raise capital and scale their ideas upon Pylon’s crowdfunding-via-yield. Project teams can customize funding options and receive consistent yield payouts that will respond to project growth over a sustained period of time.

Pylon’s native governance tokens (yet to be announced) will be one of the first projects to be officially launching on Gateway.

Deposit With Pylon

Crypto-friendly platforms that bridge users and creators in any industry will soon be able to simply integrate Pylon’s software, widget, and SDK to power services via user deposits and accrued yield.

Pylon will have forthcoming use cases spanning payments for services and content offerings, charitable fundraising, art patronage, startup investments, rentals, savings, and so much more.

“You Must Construct Additional Pylons…”

In the StarCraft universe, our namesake “pylon” refers to a protoss supply building that powers nearby structures and serves as a prerequisite for the construction of other units.

If you are a platform or service provider wanting to integrate Pylon’s deposit to pay widget into your commercial payments gateway, or if you are blockchain-related project team aiming to launch your tokens on Gateway, please contact us at [contact [@]]

Join Pylon’s Telegram and follow @pylon_protocol on Twitter to keep up with the latest updates.