It’s a new month and Terra protocol is surprising us once again with major innovations that promote the cryptocurrency community. The other day, it was all about Anchor and how it enables its users to save and borrow their tokens. Today, it’s all about the Pylon protocol and how it’s enabling crypto investors to make interest.
Pylon works together with other Terra products to succeed in its incubation goals. The main goal is to fund new businesses and balance the venture capital in the community throughout. As a member, you get to enjoy a friendly environment on the pylon protocol.
To understand more about pylon protocol, here is everything you need to know about it.
What is Pylon Protocol (MINE)?
To understand pylon protocol (MINE), you first need to familiarize yourself with Anchor. This is Terra’s protocol development that is designed to allow its users to stake their terra tokens and earn interest of up to 20%. You can get the 20% interest by depositing your tokens on Anchor and you get to borrow 30% of your interest, which you will be paying an interest rate of up to 17%. At the same time, 100% of your tokens are staked at Anchor Treasury to ensure that the 20% interest is stored.
Pylon protocol, on the other hand, enables you to deposit the 20% earned on your account and use it to pay service providers or even use it on other projects. As you do this, your initial tokens staked on Anchor will not be used. Hence, we can describe it as a launchpad that funds projects on Terra platform. These are mostly DeFi startups that need to start successfully.
Components of Pylon Protocol Work?
Now that you are familiar with what Pylon protocol, understanding its components is very crucial. It has three main components, but the developers are most likely going to bring in more, according to the current trend. Here are the current components that make the pylon protocol a big success.
- Pylon gateway – Under pylon protocol, you will find pylon gateway. Just as the name suggests, it is a user-friendly platform that links users to possible ways of earning tokens. As mentioned above, the 20% interest earned from your tokens will not be paid in UST. Instead, you get to redirect it to other projects or pay for services. Early this year, Pylon Gateway launched Pylon Pool, which enables its users to deposit UST for either 6, 12, or 18 months. And in return, you are rewarded with MINE tokens. The more you store your UST, the higher the chances of receiving more MINE tokens. As of last month, the MINE pools were rewarding their users with $0.01 per token they deposited.
- Anchor protocol – As started earlier, this component works hand in hand with Pylon Protocol to facilitate saving and borrowing stablecoins on Terra. Users can borrow against their savings and pay back with interest. What is amazing about this is that your collateral continues to earn interest that you can withdraw. So, the savings give you a double benefit on pylon protocol.
- Pylon web app – This is a pylon protocol application that provides its users with services that allow them to save, stake, and borrow Terra crypto. With a high infiltration of technology, people can now use web applications easily. It is easier to use the pylon web app on a mobile phone.
Where to Access Pylon Protocol
Several platforms support pylon services for trading and saving. It is not a must that you visit the official Terra website to stake or transact in any other way. So, consider using these popular platforms, and check out more that will partner with Terra in the near future.
- Terra platform – Terra is the pioneer of this project, and they definitely have it on their platform. Whether you are looking to save, make payments, or launch a startup, Terra’s website will give you the best experience. According to the website and current users, this is a next generation-level crypto management platform with new products and improvements of the old ones coming up every day.
- Loop Finance – Last month, Loop finance launched its service on pylon gateway, which enables its users to stake their MINE and use the interest earned in developing different projects. Loop is an ever-evolving platform with promising strengths and benefits to its users. If you already have an account with them, visit the pylon protocol page to see what is in store for you.
- Coinbase – This platform is known for supporting most crypto services globally. It has recently supported the pylon protocol by creating ways for users to use the pylon web app to stake their tokens and earn interest. You also get access to the incubation benefits of pylon protocol, which you should try.
How to Claim Tokens on Pylon Protocol
Investing in the pylon protocol enables users to borrow money for their startups and also earn handsome interest. But do you wonder how they claim the earned coins? Savings are locked for a specified time, after which users can access their interest. However, the interest starts to accumulate the moment you start saving. So, how do you claim your earned MINE?
When your Terra wallet is connected, the user can claim free earned MINE with the click of a button. The following process is simple. They recommend you stake your redeemed MINE, but you can also send it to another wallet for cashing out. But one thing to know is that staking back the coin helps you grow your investment.
With just a few months of service from pylon protocol, we can clearly state that it has a bright future ahead. It allows its users to stake their tokens and in return earn interest from them, which they can use to pay for different services or projects. If you are new to pylon protocol, the above article provides information to help you learn more. It is enough information for you to register, but you need to check out for more information to succeed.