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.

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What is Silo Llama?

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)

Using Silo Llama - Examples

Example 1

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.

Example 2

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.

Interest Rate Curves

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	bridgeETHv2	crvUSD	stableHighCapV2
YFI-crvUSD	YFI	volatileOpt50Base15	crvUSD	volatileOpt80Base15
RPL-crvUSD	RPL	volatileOpt50Base15	crvUSD	volatileOpt80Base15
LINK-crvUSD	LINK	volatileOpt50Base7	crvUSD	stableHighCapV2
cbETH-crvUSD	cbETH	bridgeETHv2	crvUSD	stableHighCapV2
OHM-crvUSD	OHM	bridgeETHv2	crvUSD	stableHighCapV2
SNX-crvUSD	SNX	volatileOpt50Base15	crvUSD	volatileOpt80Base15
LQTY-crvUSD	LQTY	volatileOpt50Base15	crvUSD	volatileOpt50Base15
LDO-crvUSD	LDO	volatileOpt50Base15	crvUSD	volatileOpt50Base15
UNI-crvUSD	UNI	volatileOpt50Base15	crvUSD	stableHighCapV2
USDC-crvUSD	USDC	stableHighCapV2	crvUSD	stableHighCapV2

Oracles

Silo Llama uses multiple price providers (oracles), including:

• A custom oracle for crvUSD that reads the price of crvUSD from the audited Curve crvUSD-USDC pool.

• Chainlink price feeds to read the price of base assets such as RPL, rETH, YFI and the rest use Chainlink price feeds.

Contracts and resources

Github: https://github.com/silo-finance/silo-llama-core

Devdocs: https://devdocs.silo.finance/

Contracts:

• SiloRepository: 0xbcd67f35c7a2f212db0ad7f68fc773b5ac15377c

• PriceProvidersRepository: 0xa40111994F44C8add82eF495269e19109c9A982A

• SiloFactory: 0x2c0fA05281730EFd3ef71172d8992500B36b56eA

• InterestRateModelV2: 0x408822E4E8682413666809b0655161093cd36f2b

• ChainlinkPriceProvider: 0xb05F478d93C7063194f37535aD148242B8d1F1B8

• crvUSDPriceProider: 0xa1c2837b7A899d6f89282e9bE9f1496D12e86bBa

• SiloLens: 0x32a4Bcd8DEa5E18a12a50584682f8E4B77fFF2DF

• Liquidation helper: 0x205E95fCCFa7A0684BF7E41A4d11b4BF41E88516

• SiloRouter: 0xF380F025675A868eD5614a1Dd77c6b05f4147004

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.