Collateral Status
Last updated
Last updated
When a user deposits on silo, they can choose between making a borrowable or protected deposit. Both deposit types can be used as collateral for borrowing but differ in whether they can themselves be borrowed by other users.
Borrowable deposits can be borrowed by other users. This allows the depositor to earn interest as well as $SILO rewards, if any.
A user may choose to do a borrowable deposit if they want to earn interest and $SILO rewards.
Protected deposits cannot be borrowed by any other users. Since these deposits cannot be borrowed, they do not earn interest or $SILO rewards but can still be used as collateral for borrowing.
Users may opt for protected deposits if they do not want their collateral to be borrowed or guarantee access to liquidity if utilization is at 100%.
Certain assets may be usable as protected deposits only.
