Silo Llama
Lending protocols pose risk to depositors, including the risk of failed liquidation and price oracle manipulation. SiloDAO doesn't govern risk. Use at your own risk.
Silo Llama is a fork of the original Silo Finance protocol that uses $crvUSD as its only bridge asset.
Silo Llama inherits the security and features from the current Silo Finance legacy lending app, that was deployed last year with two security audits and formal verification, and has been battle-tested since August 2022.
With the launch of Silo Llama, crvUSD has a dedicated isolated lending protocol where it can be used as collateral to borrow any other assets in the protocol while users remain completely isolated from contagion risk.
With the deployment of Silo Llama, Silo Finance has now 3 deployments:
- Silo Finance - Llama (Ethereum)
- Silo Finance - Legacy (Ethereum)
- Silo Finance (Arbitrum)
If you wish to deposit YFI to borrow crvUSD, you can simply:
- 1.Deposit YFI into the YFI silo
- 2.Borrow crvUSD
The YFI silo only allows YFI and crvUSD to be used as collateral. This means activity in other silos is completely isolated from position, insulating both parties from contagion risk.
If you wish to deposit YFI and borrow RPL (to short LDO for example), you can
- 1.Borrow crvUSD from the YFI market.
- 2.Deposit borrowed crvUSD into the LDO market.
- 3.Borrow LDO from the LDO isolated market against your crvUSD collateral.
As such, you now have two borrow positions, 1. and 2. as mentioned above, neither one of which is exposed to the risk of the other.
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Traditional lending markets like Aave offer a singular USDC deposit rate that is set by one interest rate curve, regardless of the collateral used to borrow.
In Silo Llama, each market has a unique interest rate curve based on the risk of the collateral in that market. As a result, crvUSD depositors in the YFI market may earn higher interest rates than those depositing in the rETH market.
Here is a list of assets and interest rate curves they use:
Market | Base Asset | Interest rate curve | Bridge Asset | Interest rate curve |
rETH-crvUSD | rETH | crvUSD | ||
YFI-crvUSD | YFI | crvUSD | ||
RPL-crvUSD | RPL | crvUSD | ||
LINK-crvUSD | LINK | crvUSD | ||
cbETH-crvUSD | cbETH | crvUSD | ||
OHM-crvUSD | OHM | crvUSD | ||
SNX-crvUSD | SNX | crvUSD | ||
LQTY-crvUSD | LQTY | crvUSD | ||
LDO-crvUSD | LDO | crvUSD | ||
UNI-crvUSD | UNI | crvUSD | ||
USDC-crvUSD | USDC | crvUSD |
Silo Llama uses multiple price providers (oracles), including:
- Chainlink price feeds to read the price of base assets such as RPL, rETH, YFI and the rest use Chainlink price feeds.
Contracts:
Owner: Silo Llama is a non-custodial, non-upgradable protocol. However, the Silo’s core contributors team owns functions in the protocol that are detailed here.
Last modified 1mo ago