Nexus Pylon Pools

In line with our launch roadmap, Nexus Protocol is participating in Pylon Protocol's lossless investment product - Pylon Pools.

What are Pylon Pools?

Found on Pylon Gateway, Pylon Pools is a product that allows project founders to raise money to execute on their roadmaps by accepting deposits from users.

Leveraging the powerful yield from Anchor Earn, depositors by participating in Pylon Pools, lockup their UST with Pylon Protocol and agree to redirect their Anchor Earn yield to project founders. In doing so, they are participating in a "lossless investment" as their UST principal is returned to them in full once the maturity of the respective pool ends. In exchange for their support, users receive project tokens from the teams, which are vested over a specific time frame.

Our Pylon Pools

Users depositing into the Nexus Protocol Pylon Pool will receive $Psi tokens in exchange for the UST principal lockup and having their aUST yield redirected to the Nexus Protocol and the Nexus team.

After depositing, users will receive a ledger token (in similar fashion to how nLUNA and nETH works currently) which represents their UST deposit in the Pylon Pool; this will be known as $bPsiDP-24m according to Pylon Protocol nomenclature.

By holding these ledger tokens, regardless of whether they remain in the liquidity pool or held in the user’s wallet, users will accrue $Psi token rewards on a per-block basis. These rewards will become claimable according to the parameters of the Pylon Pool.

A total of 200 million $Psi tokens have been allocated for the pool, vested over a period of 24 months.

Benefits to Nexus Protocol

The primary function of the pools is to fund the Nexus team so we can execute successfully on our product roadmap. This is the core function of all Pylon Pools.

However, we feel the use of Pylon Pools can be a great catalyst in helping us jumpstart the acquisition of protocol owned liquidity (PoL) for Nexus Protocol. Therefore, for the Nexus Pylon Pool, 50% of the funds generated will therefore go directly to the Nexus community treasury in the form of UST. This UST will be convertible to Protocol Owned Liquidity (PoL) at any point thereafter via a community vote.

We aim to first taper Psi-UST LP incentives first as PoL of Psi-UST grows before moving to nAsset LPs if deemed necessary.

Technical Details

While Nexus Pool Token will be openly traded on Terraswap, and hence pricing of the token will be determined by the market, there are a few guiding principles on how Nexus Pool Token should be priced. From a fundamental perspective, Nexus Pool Token is simply worth the net present value (NPV) of the UST users can claim at pool maturity plus the implied yield from $Psi token rewards. While the former is deterministic, the latter is dependent on market forces.