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Risk Parameters

Introduction

Silos provide similar risk isolation to liquidity pools on Automated Market Makers (AMM) such as Uniswap. Each v1 Silo has the same default parameters for:
  • Loan to Value (LTV)
  • Liquidation Threshold
  • Liquidation Penalty
Silos are permissionless and therefore anyone can create a Silo for any token asset provided the token asset is listed on Uniswap V3 or Balancer V2.
Users can borrow up to 50% of the value of their collateral. Collateral is liquidated when the debt position reaches 62.5% of the collateral. This high liquidation threshold reduces the risk of any Silo becoming under-collateralized during a liquidation event.

Default Collateral Factors

The table below lists collateral factors for a random group of token assets. By default, all Silos apply the same collateral factors.
Loan To Value (LTV)
Liquidation Threshold
Liquidation Penalty
50%
62.5%
37.5%
Collateral factors can be adjusted for each Silo through governance. Once adjusted, we will list token assets with their updated collateral factor in a separate table..

Adjusted Collateral Factors

None. At launch, all Silo will have default collateral factors at genesis.