Frequently Asked Questions
Silo is building technology so you can borrow any token using another securely. It is a non-custodial lending protocol for permission-less money markets.
We want to bring secure lend/borrow markets to all tokens in the same way Uniswap brought liquidity pools to thousands of tokens. This simply means you will be able to use any token as borrow collateral.
- Secure: In Silo, the impact of a token being hacked, exploited, or manipulated is isolated to the respective market, not the protocol.
- Efficient: Each market supports only 2 assets, the bridge token, and a unique token. This design concentrates liquidity in single pools and allows for a high degree of efficiency.
- Scalable: With Silo’s market design, the risk is isolated at a market level, and therefore any of the ~10,000 tokens available today can theoretically have a lending market.
Non-custodial means you have control over your money at all times. Neither Silo nor others can take control over your deposited money.
Anyone with a connected wallet can create a lending market. Let’s assume you visit Silo.finance and discover that there isn't a market for $CRV. Well, you can create it by submitting a transaction via your wallet. This is different from AAVE and Compound that control what tokens get accepted in their protocols.
Yes. Here is the token address: https://etherscan.io/address/0x6f80310ca7f2c654691d1383149fa1a57d8ab1f8
Yes, we are a community-first project. Silo is the future of lending and we will remain committed to the ethos of the blockchain.
We are focused on building our protocol as of now.
We are preparing for security audits. Both audits will take place in January 2022. Once they are completed, we will bring Silo to you.
We are a team of 7, working full-time on Silo. We have got an awesome advisor helping us in many areas.
- Smart contracts lead
- Ops leads
- Frontend lead
- Growth lead
- Senior smart contracts engineer
- Blockchain engineer
- Blockchain engineer
We’re always looking for talented people to help us. You can create videos, memes, and other content to spread the word about us. If you have worked in marketing and community growth, talk to us.
To answer the question, let's look at a practical example. Say you deposit $UNI in AAVE. Someone else borrows your $UNI with $AMP as collateral. If something bad happens to $AMP, not only $UNI depositors are at risk, but also everyone who deposited any token in the protocol - every single user in AAVE is exposed to the systemic risk.
Rari Fuse is not different. Look at Tetranode pool, it has ~19 tokens. If you do NOT trust one token out of the 19, the pool is worthless to you. This is a big problem because Rari can no longer match lenders/depositors at because every user has a list of tokens they trust and tokens they don'ts. They would need millions of pools in order to match everyone's risk profile.
Silo Finance is different. We have one market for an asset, paired with ETH, the trusted bridge token. Let's continue with the above example.
You deposit your $UNI in UNI-ETH Silo (market). Someone else deposits $AMP in AMP-ETH Silo and borrows your $UNI. Behind the scene, SILO has moved ETH collateral from AMP-ETH to UNI-ETH. Your $UNI deposit is protected with ETH now, not $AMP. If $AMP goes bad, ETH lenders in the AMP-ETH are impacted.
You see now how Silo Finance can scale: we need one Silo for each token (xToken-ETH), and we need people to deposit $ETH in the markets they trust. You can customize your risk the way you want.
We're building Silo to be chain-agnostic, that is it can be deployed on Ethereum, EVM-compatible chains, L2 scalability chains, and beyond. We have not decided yet where we will be deploying it first as there are many factors to consider. Stay tuned for more information.
No. We have coded Silo from the bottom up. Forking and reengineering a battle-tested code would introduce significant security risks and limit the protocol design choices as we build towards our product vision.