Pylon, which first made waves on May 15 of this year, is the talk of the Terra ecosystem after it was promoted in the fourth issue of the group’s Project Spotlight. It’s the fifth protocol incubated by the Terra team, according to a tweet from Terra, joining Chai, Mirror, Anchor and Nebula.
So, what is Pylon Protocol, what does it offer for creators and fans, and how can you get involved? Let’s find out.
What Is Pylon Protocol?
“Deposit Money, Spend Yields.” “Enhance your spending.” “No loss deposits.”
Those are the headlines that Pylon Protocol plasters just about everywhere. But how does the protocol work?
Pylon offers a suite of DeFi savings and payments products designed to build on stable yield-bearing protocols, including Terra’s Anchor protocol. The goal, according to the Pylon team, is to “provide services powered by user deposits” and enable “sustainable exchanges between long-term value providers and their consumers through customizable deposit contracts and yield redirection.”
The main offering of the protocol is known as Pylon for Payments. It’s designed to provide a convenient payments product designed not just for crypto natives, but for the wider digital economy.
Users, or those who wish to make a payment using Pylon, simply deposit Terra stablecoins to gain access to recurring services powered by platforms. Then, these users can withdraw their principal in full upon subscription expiry.
Creators, or those who want to accept a Pylon payment, meanwhile, only need to customize funding options to include Pylon. They can then start receiving “stable, continuous yields generated from user deposits.”
Why Does Pylon Protocol Matter?
The Pylon Protocol offers what claims to be an easier, simpler solution to subscription payments. But how will that play out in the real world?
According to the Pylon team, there’s no shortage of possible use cases. For example, users could make deposits that allow them to watch certain shows or movies without paying for a year-long cable subscription. Or, they could deposit stablecoins as collateral to rent property, eBooks, in-game items, or more.
Ultimately, the goal of the Pylon Protocol is to give its users access to new ways to make payments, whether those payments be for subscription services, charitable constitutions, car and residence rentals, and much more. And perhaps unsurprisingly, these possibilities have plenty of Terra faithful, including @MSpallo93 on Twitter, feeling optimistic about the future of Pylon.