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.
The table below lists collateral factors for a random group of token assets. By default, all Silos apply the same collateral factors.
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..
None. At launch, all Silo will have default collateral factors at genesis.