Silo

The Silo Protocol's allows anyone to deploy two-sided lending market known as a silo. Every silo is identical in architecture but variable in its modules, enabling interoperability with other dApps.

Modules

Modules are interchangeable units of a silo that can be configured at deployment.

This includes:

📄️ Isolated Pairs

Every Silo consists of two tokens that can be used for lending or borrowing within that market. By default, silos are two-sided, meaning Token A can borrow Token B and vice versa. This creates yield opportunities for deposits of both assets.

📄️ Interest Rates

Each token in an isolated market (silo) has an algorithmic Interest Rate Model (IRM) that adjusts the borrow interest rate (IR) based on the token’s utilization in the market, setting higher rates when utilization is high and lower rates when utilization is low.

📄️ Borrowing Parameters

Every token in a given silo has a defined maximum Loan to Value (mLTV) and Liquidation Threshold LT that define the borrowing power and solvency requirements of that token.

📄️ Oracles

Every token in a silo uses an oracle which are third-party applications that provide updated token prices on-chain. For technical information, read this document.

📄️ Liquidation

What is Liquidation?

📄️ Hooks

coming soon

Silos may either be immutable (modules can not be changed) or upgradeable (modules can be changed) at deployment.