What is Silo Finance (SILO)?
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🟢 The simple version
Plain English — no jargon. Start here.
Silo Finance creates isolated lending markets (silos) per token — every asset gets its own pool with risk fully contained, enabling long-tail tokens to have lending markets without endangering the entire protocol.
Isolated silos — any token, contained risk
In Aave's shared pool, a bad asset affects all lenders. Silo: each token gets its own isolated silo. If the ARB silo is exploited, only ARB silo lenders are affected — USDC silo lenders are untouched. This allows Silo to list hundreds of tokens Aave governance would never approve. Silo v2 made silos composable: silo share tokens usable as collateral in other silos while maintaining risk isolation. ~1B SILO governance. Is SILO legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
SILO vs Morpho vs Euler v2
All use isolated market approaches. Silo: per-token silos with ETH/bridge asset pairs. Morpho Blue: permissionless isolated markets. Euler v2: Euler Vault Kit modular vaults. Silo v2 composability (silo shares as cross-silo collateral) is its key evolution over the original design.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: SILO (~1B)
- Model: Per-token isolated silos
- Risk: Fully contained per silo
- v2: Composable silos (2024)