Lending Markets

The Silo Protocol allows anyone to deploy a risk-isolated lending market. Each silo shares a common core architecture while supporting modular components, enabling flexible configurations and interoperability with other dApps.

Markets are permissionless to deploy and immutable once created. However, before a market is surfaced on the Silo web app, the Silo team reviews its smart contract setup and integration for correctness. This process is limited to technical validation and does not assess or guarantee the economic safety of the collateral. Users should refer to the Terms of Use and conduct their own risk assessment before interacting with any market.

Modules

Modules are modular components of a market that can be independently configured at deployment.

This includes:

📄️ Isolated Pairs

Silo v3 isolates risk at the market level through isolated lending markets.

📄️ Lender Protection

Liquidations ensure that markets remain solvent and lenders can withdraw their funds in full. To protect lenders, Silo supports two types of liquidations:

📄️ Borrowing Parameters

Each asset in a lending market defines two key parameters that determine how much can be borrowed and when a position becomes unsafe:

📄️ Oracles

Every asset in a lending market relies on an oracle—an external data source that provides up-to-date prices onchain.

📄️ Interest Rates

Silo v3 uses an innovative Interest Rate Model designed to maintain equilibrium between lenders and borrowers under changing market conditions.

Markets can be deployed as fully immutable (modules cannot be changed) or with limited upgradeability, where only interest rate curves and oracles can be updated.