Silo Finance

Our groundbreaking lending approach creates a considerably safer structure in contrast to standard shared-pool DeFi lending platforms. Silo utilizes a segregated-pool approach where every token asset has its distinct lending market and is linked with bridge assets ETH and Silo’s over-collateralized stablecoin XAI. Lenders in every protocol encounter the risk of ETH and XAI at any time. Lenders assign funds to a distinct lending market that comprises solely of Token ABC and the bridge asset. If Token XYZ experiences an exploit, lenders of Token ABC will not be impacted, since the risk is confined to the Token XYZ market. Furthermore, since every token is connected to either ETH or XAI, there is a single market for each token asset, which prevents fragmented liquidity and improves protocol efficiency. In contrast to pure lending pair methods, which create a new lending market for every new pairing.