Pylon (MINE)

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:

Audits & Exploits

• Bug bounty program can be found here (7-2021) up to $150k.
• From their docs (7-2021):

"Independent audit report. Forthcoming second audit by Cryptonics."

• Scored a 74% on DeFi Safety (22-8-2021):

"SVCSoft published a Pylon Protocol audit report on June 26th 2021. The audit quality appears high, however we have concern about several high severity findings that are not fixed or explained by the team. For this reason 30% is deducted or 60%.

This audit was performed before the launch of the MINE token staking."

With the comment: "Good transparency all round.  Some items in the audit raised an eyebrow but overall a solid show."

Governance

Admin Keys

• From their blog (19-7-2021):

"Although the first couple of projects to launch on Pylon Gateway will be carefully selected by Terraform Labs and the Pylon team, the aim is to make Pylon Gateway entirely permissionless within the end of year."

• From DeFi Safety (23-8-2021):

"Pylon Protocol's access controls are clearly labelled as "Pylon Governance" in their documentation.

a) Contracts are labelled as upgradeable through the process of voting.

b) Governance contract is OnlyOwner of itself.

No evidence of a Pylon Protocol Pause Control or similar function was found in their documentation or in their GitHub repositories."

DAO

• From their blog (19-7-2021):

"Pylon will be primarily used to roll out all Terra-based community grants and DAO membership fees.

Once governance pools go live on the WebApp, MINE stakers will be able to make proposals and vote on topics including but not limited to:

1. Gradually transitioning from a buyback-and-distribute model to a buyback-and-burn model.
2. Vetting and whitelisting project token launches on Pylon Gateway.
3. Cutting off projects from receiving further funding via Pylon Gateway if that project does not meet their stated long-term goals and promises.
4. Rolling out community fund grants for proposed projects."

Treasury

• From their blog (30-12-2021):

"One of the most important pivots for the protocol has been the establishment of a robust community fund governed by MINE stakers to capture more value over time. Building on previous community posts, the forum post “Establishing the Pylon Treasury” called for changes two-fold:

1. the redirection of yields accrued across all Pylon-integrated platforms to the Pylon Treasury
2. the redirection of all further weekly MINE airdrops for LUNA stakers to the Pylon Treasury

To date, weekly buybacks have amounted to over 12 million MINE being distributed to governance stakers. The vote for this proposal passed, resulting in the temporary halt of weekly MINE buybacks and the permanent halt of weekly MINE airdrops for LUNA stakers. Yields generated from Pylon Gateway have so far been accumulating in the Pylon Treasury.

Instead of all yields going towards token buybacks and redistribution to stakers (as was the previous model), a follow-up community poll set up an initial distribution for the treasury, which will come into effect starting early next year:

1. 25% for weekly MINE buybacks to be redistributed to governance stakers
2. 25% for providing additional liquidity to the MINE-UST pair, with LP rewards being redistributed to stakers
3. 50% being stored as aUST in Anchor Protocol, with storage and use cases for the UST being governed by stakers"

Token

Token Allocation

• From their docs (7-2021):

"The hard cap of circulating MINE token supply will be fixed at 10,000,000,000 MINE, which is scheduled for distribution over a period of at least 4 years. A total of 2,500,000,000 MINE tokens are released at the genesis of Pylon Protocol. The initial distribution of MINE will be as follows:

1. Pylon Launchpad: 400M (16%) tokens will be distributed for early MINE investors. The genesis MINE launch on Pylon Gateway will distribute 200M MINE tokens across three deposit pools, while another 200M MINE will be reserved for the Pylon Swap pool.
2. LUNA Staking Airdrop: 500M (20%) tokens will be airdropped to LUNA stakers, with the snapshot taken on the date of launch.
3. Community Fund: 1,600M (64%) will be allocated to the community pool. At least 100M tokens will be reserved for bootstrapping initial project pipeline on Pylon Gateway, early user onboarding, or second-round MINE fundraising as needed.

Further MINE tokens are set to be released over a period of at least 4 years, increasing total supply until it reaches 10B. The final distribution structure will be:

1. Pylon Launchpad: 400M (4%) tokens will be distributed to early MINE investors over vesting periods of 6 months, 12 months, and 18 months.
2. LUNA Staking Airdrop: 500M (5%) tokens are airdropped to LUNA stakers on launch.
3. LUNA Staking Rewards: 1,000M (10%) tokens are linearly distributed to LUNA stakers over a period of 2 years. Tokens will be distributed every 100,000 blocks (approximately every week). Snapshots are taken every 100,000 blocks to determine distribution eligibility.
4. Depositor Incentives: 4,000M (40%) tokens are linearly released to be used for depositor incentives and to reward ecosystem participation over a period of 4 years.
5. Community Fund: 1,600M (16%) tokens will be reserved for the Pylon Community Fund.
6. Team Reserve: 1,000M (10%) tokens will be vested over 4 years to the creators of Pylon.
7. MINE LP Staking Rewards: 1,500M (15%) tokens are distributed to the MINE-UST pair liquidity providers over a period of 4 years.

Utility

• From their docs (7-2021):

"The first and foremost functionality of MINE is to allow MINE holders to govern the underlying protocol via the Pylon WebApp. Users can deposit MINE to create governance polls, and MINE stakers can vote on community fund grants, protocol updates, launchpad projects, parameter changes, new features development, and other ecosystem expansion initiatives.

MINE is designed to capture a portion of yields and transactions generated across all Pylon platforms and project launches on Pylon Gateway, such that MINE holders directly benefit from the success of Pylon Protocol and products built on top of it. Yields collected in TerraUSD are used to purchase MINE through Terraswap."

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Terra, Anchor

Fees

• From their blog (19-7-2021):

"All Pylon Pools will dedicate 20% of accrued yields for MINE token buybacks on TerraSwap, which will be distributed entirely to MINE stakers. The remaining 80% of yields will be redirected to project teams."

Staking

• From their blog (30-12-2021):

"One of the latest upvoted governance polls that is awaiting implementation is the launch of a 14-day undelegation period for MINE governance stakers, aiming to reduce day-to-day price volatility and fluctuations while incentivizing long-term governance and constant engagement in polls."

• From their blog (19-7-2021):

"MINE buybacks will go into effect on July 26th, 2021, in order to provide initial buy demand and encourage new MINE holders to stake their MINE holdings. The yields accrued from the ~$10.6M UST deposits on Pylon Gateway (as of today) will be powering the initial annual percentage yield (APY) for MINE stakers.

On a project-by-project basis, additional benefits for MINE stakers may include early access queues, higher maximum deposit allocations, higher rates of project token distribution per MINE staked, exclusive participation in MINE staking pools, and/or project token airdrops.

Instead of a singular genesis snapshot like airdrops for LUNA stakers, airdrops for MINE stakers will be cumulatively distributed over a designated period of time (similar to how current UST stakers on Pylon Gateway receive accumulated MINE rewards over time). This is designed to reward long-term MINE holders, not those who just stake for a single day and unstake the day after snapshot."

Their Other Projects

Pylon Funds

• From their blog (30-12-2021):

"In short, Pylon Funds are sustainable yield-based treasuries built upon a new asset class of DAO membership tokens (DP tokens). DP tokens here represent the underlying locked UST that is redeemable upon lockup expiry on top of the value add of each distinct Pylon Fund, whether that be linear pro rata token distribution, retrospective airdrops, governance, ownership over fractionalized NFTs, and so forth."

Pylon Gateway

• The token launchpad for Terra.

Roadmap

• Can be found here (30-12-2021).

Usage

• From their blog (30-12-2021):

"Topped $250M in total value locked (USD)."

Projects that use or built on it

• From their blog (30-12-2021):

"A flurry of protocols have launched since the last monthly update via the standard Pylon Pools, including Orion Money, White Whale, Glow Yield, Sayve Protocol, and XDEFI Wallet. Many of the projects decided to implement MINE staking entry requirements.

The latest NFT Raffle Pool to launch was Deviants’ Factions, with Luna Bulls, TerraBots, and Terra Movie Club passing the governance vote to launch early next year."

Team, Funding and Partners

Team

• Full team can be found [here].
• Terraform Labs and its own Pylon Team.

Funding

• Orion Money; took part in the Private Farming raise of $70M TVL (12-8-2021).

Partners

• Partnered with multiple Terra projects (30-12-2021), including: Glow Yield, Valkyrie Protocol, Spectrum Protocol, Prism, Astroport, TerraFloki and Olympus Pro.

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