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Introduction to Silo

What is Silo v3?​

Silo v3 is a new class of onchain money markets designed to guarantee lender solvency without relying on instant liquidity.

Traditional lending protocols depend on the ability to liquidate collateral immediately on the market. When liquidity fails, these systems break—leading to bad debt and systemic risk.

Silo v3 removes this dependency.

Instead of relying on market liquidity, Silo v3 introduces a protocol-level solvency mechanism that ensures lenders are repaid under all market conditions.

This is achieved through:

  • Risk-isolated markets, where exposure is contained
  • A dual liquidation system, including Collateral-Debt Swaps (CDS)
  • Guaranteed lender coverage, even when liquidation liquidity is unavailable

In Silo v3:

  • Lenders are always protected at the protocol level
  • Insolvency is addressed directly, not indirectly through liquidation
  • Liquidation events can become a source of yield, not just risk

Silo v3 shifts lending from liquidity-dependent systems to explicit, mechanism-driven credit infrastructure.

Silo v3 is built to support:

  • Any asset as collateral
  • Isolated, customizable credit markets
  • High, market-driven yield
  • Real-time risk visibility

Silo v3 is currently live on Ethereum, Arbitrum, and Avalanche, and coming soon to Injective, XDC, and many more networks.

Who is Silo v3 for?​

Silo v3 is built for three types of users:

Lenders​

Earn yield with built-in protection mechanisms that guarantee coverage even in illiquid or stressed markets.

Borrowers​

Access liquidity using a wide range of assets, including those without deep onchain liquidity.

Developers​

Build credit markets that scale based on asset fundamentals—not liquidity constraints.