Silopedia
  • Read Me
  • Introduction
    • What is Silo?
  • The Silo Protocol
    • Protocol Design
      • Base and Bridge Assets
      • Silo Deployments
      • Collateral Status
      • Interest Rate Model
        • Dynamic IRM with PI Controller
        • Kink IRM with Multiplier
        • Fixed IRM
      • $XAI
      • Curve LP Markets
      • Incentives
    • Lending 101
      • The Markets
      • The Lender
      • The Borrower
      • Liquidation
    • Risks
      • Smart Contract
      • Economic
      • Oracle
      • Bad Debt
      • Liquidation
    • Integrations
      • Pendle Finance
      • Contango
      • Beefy
      • Factor
  • Walkthroughs
    • Using Silo
      • Connect Wallet
      • Lending (Depositing)
      • Withdrawing
      • Borrowing
      • Repaying
    • Delegating $SILO to Vote
      • Delegate to Self
      • Delegate to Somebody Else
    • Farming with $SILO
      • LPing SILO/ETH v3 on Camelot (Arbitrum)
    • Borrowing Strategies
      • Borrow to Short
      • Borrow to Leverage
  • Yield farming opportunities
  • Oracles
  • Liquidate a position manually
  • SiloDAO
    • $SILO
      • Token Allocation and Vesting
    • Governance
    • Creating a Silo
    • Wallets and DAO Contracts
  • Security
    • Audit
    • Formal Verification
    • Bug Bounty Program
    • Smart Contracts
  • Additional Information
    • Brand Assets
    • Developer Docs
    • Submit a Bug
    • Official Channels
    • SiloDAO (Snapshot)
    • SiloDAO (Tally; On-Chain Voting)
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On this page
  • What is the Silo Protocol?
  • What makes Silo different from other lending markets?
  • Risk-Isolation
  • Markets for any Token
  • Lender-Defined Risk
  • Risk-Defined Interest
  1. Introduction

What is Silo?

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Last updated 1 year ago

What is the Silo Protocol?

Silo is a risk-isolated lending market that allow users to deposit tokens to earn interest or as collateral to borrow other tokens.

Silo is actually composed of multiple individual lending markets consisting of a and the (this could be $ETH or stablecoins depending on the ).

What makes Silo different from other lending markets?

Risk-Isolation

By creating individual lending markets for each base asset, each Silo market is completely separated from every other Silo market. This means lenders only take on the risk of the market they choose to deposit into i.e. the base asset.

This is distinct from legacy platforms like Aave that pool assets, with lenders exposed to the risk of all tokens on the platform.

Markets for any Token

Silo can create markets for any token where there are willing lenders. This allows for lending markets for esoteric assets like and .

This is distinct from shared-pool platforms where new assets are incredibly difficult to list since each new token introduces incremental systemic risk.

Lender-Defined Risk

depositors can choose what silo to deposit into which defines their risk exposure.

This is distinct from shared-pool platforms where you are automatically exposed to all tokens upon deposit.

Risk-Defined Interest

This is distinct from shared-pool platforms where each token has a unified interest rate - lenders do not receive better interest rates to reflect the additional risk.

Silo interest rates are allowing different interest rates on a per silo per token basis. This allows, for example, higher interest rates to compensate lenders against more volatile tokens.

modular,
deployment
Curve LP Tokens
Pendle PT tokens
Bridge asset
base asset
bridge asset(s)