Silo Finance (SILO) is a permissionless isolated lending protocol on Ethereum and Arbitrum that solves a fundamental flaw in pooled lending (Aave, Compound): shared-pool contagion risk — where one poorly-performing collateral asset can cause losses for all depositors — by creating individual, siloed lending markets for each token, where each Silo pairs a specific token (the “bridge” collateral) with ETH or USDC (the “bridge” asset) in a self-contained lending market, such that a liquidation crisis or oracle failure in the GMX Silo cannot affect the CRV Silo or any other market, enabling Silo to safely support long-tail tokens that would be too risky to accept in pooled lending protocols.
| Stat | Value |
|---|---|
| Ticker | SILO |
| Price | $0.00 |
| Market Cap | $174,372 |
| 24h Change | -0.8% |
| Circulating Supply | 82.61M SILO |
| Max Supply | 1.00B SILO |
| All-Time High | $0.91 |
| Contract (Ethereum) | 0x6f80...b1f8 |
| Contract (Base) | 0x57bd...dce7 |
| Contract (Arbitrum One) | 0x0341...e391 |
How It Works
- Isolated Silos — Each token has its own dedicated lending Silo, a self-contained smart contract. A Silo for GMX, for example, contains only GMX (collateral) and ETH (bridge asset). Lenders deposit ETH into the GMX Silo to lend to GMX holders; GMX holders deposit GMX as collateral to borrow ETH.
- Bridge asset model — Each Silo has exactly two assets: the Silo’s primary token (the unique collateral) and a bridge asset (ETH or stablecoins). This dual-asset model allows lenders to lend universally via the bridge asset without understanding every token’s tokenomics.
- Risk isolation — If a Silo’s primary token crashes or is manipulated, only that Silo is affected. Lenders in all other Silos are completely unaffected. This is the core security improvement over Aave-style shared pools.
- Permissionless Silo creation — Anyone can create a Silo for any ERC-20 token. The Silo creator sets initial parameters; SILO governance can adjust risk parameters for established pools.
- ETH lending across Silos — Lenders can deposit ETH once and spread it across multiple Silos to earn yield from multiple collateral markets simultaneously (using Silo’s “Collateral Only” deposit mode). This creates a capital-efficient multi-Silo lending position.
- SILO governance — SILO holders vote on bridge asset selections, collateral factors, reserve factors, Silo V2 features, and fee parameters.
Tokenomics
| Parameter | Value |
|---|---|
| Ticker | SILO |
| Max Supply | 1,000,000,000 SILO |
| Ethereum contract | 0x6f80310CA7F2C654691D1383149Fa1A57d8AB1f8 |
| Chain | Ethereum (primary) + Arbitrum |
| Emissions | Distributed to borrowers, lenders, and SILO stakers |
| Launch | November 2022 |
Use Cases
- Long-tail token lending — Borrow ETH against niche DeFi tokens (GMX, CRV, CVX, RDNT) in their own isolated Silo, safe from cross-contamination.
- ETH yield farming — Lend ETH across multiple Silos to earn yield from diverse collateral borrowers.
- Permissionless Silo creation — Create a lending market for any ERC-20 token without governance approval.
- SILO governance — Vote on protocol parameters, bridge asset choices, and upgrades.
History
- 2021-2022 — Silo Finance is conceptualized and developed in response to high-profile lending protocol exploits (Cream Finance’s three hacks, AAVE’s CRV shortfall event) that demonstrated how shared lending pools create systemic risk. The founders design the isolated Silo model as a structural solution.
- 2022-11 — Silo Finance V1 launches on Ethereum. Initial Silos created for DeFi blue chips: ETH/USDC, GMX, CRV, CVX, BAL, and others. Early TVL grows from DeFi users who hold long-tail tokens and need liquidity without selling.
- 2023 — Silo expands to Arbitrum, deploying Silos for Arbitrum-native tokens (GMX, RDNT, JONES, ARB). The Arbitrum deployment grows quickly given the high activity in Arbitrum DeFi.
- 2023-2024 — Silo V2 development begins. V2 introduces enhanced multi-asset Silo configurations and improved capital efficiency. Silo grows to approximately $100–200 million in TVL across Ethereum and Arbitrum.
- 2024 — Silo V2 launches with significant architectural improvements. The isolated lending model attracts institutional attention as a safer alternative to shared-pool lending for long-tail assets. Silo is frequently cited alongside Euler V2 and Morpho Blue as the next generation of DeFi lending infrastructure.
Common Misconceptions
“Silo is just another Aave fork.”
Silo’s architecture is fundamentally different from Aave’s shared pool model. Aave uses one shared pool where all assets interact; Silo uses strictly isolated markets where each pair is independent. This enables Silo to safely list assets Aave would never list due to contagion risk.
“Isolated lending means lower yields.”
Isolated lending can actually offer higher yields for obscure tokens because borrowers paying high interest for illiquid token-backed loans creates high APYs for ETH lenders in those specific Silos. Siloing creates niche high-yield markets, not uniform low yields.
Social Media Sentiment
Silo Finance is respected in DeFi security and architecture discussions as a thoughtful structural response to pooled lending risks. The protocol’s growth reflects genuine demand from holders of long-tail DeFi tokens who want to leverage without selling. SILO token is discussed primarily by DeFi yield strategists and protocol developers rather than speculative traders.
Last updated: 2026-04