Even if you've cut the cord on cable, it's easy to see your streaming bills grow. Between Netflix, Amazon Prime, Disney+, Hulu, and any other subscriptions, the monthly bill for these services can nearly leave you longing for the good old days of cable. Let's break it down:
- Netflix recently raised its prices by $1-2 across its plans. So the monthly price for a Standard plan is $15.49.
- Amazon Prime also recently lifted its price by $2 to $14.99 for the monthly plan.
- Disney+ will run you $7.99 per month.
- Hulu's ad-supported plan is $6.99 per month. If you want to spring for no ads, you pay $12.99 per month.
The monthly tally on the top-end of all these services is over $50. This is conservative, as consumers on average dole out hundreds of dollars per month on subscription services combined. Thanks to the emergence of the blockchain and a phenomenon known as decentralized finance (DeFi), your streaming budget could be about to shrink.
Pylon is a DeFi protocol that supports savings and payments products on the Terra blockchain. We'll get more into why that matters later. One of the Pylon protocol's key use cases is to address the pain point of subscription-based services, which it suggests have outgrown the traditional “value transfer model.” The Pylon team wants to appeal to an audience beyond “crypto natives” and is trying to make the project useful in the real world.
Defi-ing the Odds
DeFi is a burgeoning blockchain segment credited with turning the financial services industry on its head. This is mainly due to the rise of smart contracts, which are agreements automatically executed on the blockchain when preset conditions have been met. The potential for DeFi seems endless as developers flex their innovative prowess in the decentralized market.
DeFi participants have been huge beneficiaries, as decentralization has opened up a world of earning opportunities through yield farming and staking activities. In addition, it eliminates layers of fees considering there's no need for third-party intermediaries like banks. DeFi is delivering cryptocurrency yields in the double-digit percentage range, in some cases, while yields on bank savings accounts are fractions of a percent. Of course, DeFi assets are considered riskier than the average investment, such as bonds, so investors need to do their own research.
Pylon is a DeFi protocol that supports savings and payments products on the Terra blockchain. Terra is a blockchain that specializes in DeFi and stablecoins, the latter of which are digital assets on the blockchain that are pegged to a fiat currency, like the U.S. dollar, which helps to keep the price stable compared to the volatility of, say, bitcoin. Stablecoins are a vital component in Pylon's principal-protected payments, specifically the TerraUSD (UST) stablecoin, which is where your Netflix subscription comes into play.
Twitter account “Josephliow,” who is a member of Qi Capital and who writes about Terra, explained the Pylon protocol's use case, saying,
“The payment of a subscription based service by making a one time deposit. (EX: Netflix is $200/year, deposit $1,000 for a year and get Netflix for ‘free.'”
Here's how it works:
- Deposit money, in this case, Terra stablecoins, into a pool.
- Pylon harnesses what's known as an Anchor Protocol, which calls itself the “Stripe for savings.”
- This is where the DeFi component kicks in. Pylon stakes those stablecoins, generating a return on your deposit.
- You earn deposit provider (DP) tokens commensurate with the number of stablecoins deposited.
- Generate a yield of approximately 20% per annum on stablecoins from the Anchor Protocol.
- Spend the yield on long-term subscription services like Netflix.
- Withdraw the principal in full after a vesting period (three months, six months, etc.) and when the subscription ends.
According to the project, it's a “no-loss” proposition.
1/ DP tokens, short for Deposit Provider tokens, consist of a novel asset class of community tokens on Terra pic.twitter.com/nTSUVXDHkh
— Pylon Protocol (@pylon_protocol) January 6, 2022
According to Pylon Protocol, you'll no longer need to “pay upfront for your Netflix subscription.” They say it's as simple as depositing UST, in exchange for which your subscription is seemingly automatically paid, presumably once the balance is high enough, and you “gain access to your favorite shows.” And remember, you can withdraw your initial stablecoin investment later on.
— Pylon Protocol (@pylon_protocol) May 21, 2021
If streaming doesn't have you down and you're not looking for a fix to the subscription problem, there are plenty of other ways to participate in DeFi with Pylon, including:
- “Contribute to charity and academic research.”
- “Support 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.”
- “Make riskless investments in startup projects with all the upsides of being an early investor.”
All in all, DeFi is a creative way to earn money on the blockchain. Who knows, earning yield could just make watching Netflix even sweeter.
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This post was produced and syndicated by Wealth of Geeks.
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