Difference between revisions of "Silo Finance"

Silo Finance (view source)

95 bytes added , 06:08, 25 November 2022

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 ==== Money Market ("silos") ====
-The core function of Silo is to allow for money markets for all token assets. Specifically, it allows for the creation of silos that allow DeFi users to lend, borrow, and collateralize their tokens. The primary value proposition of using Silo compared to other lending markets is risk-isolation, whereby the impact of an exploit in one token is confined to that token's silo rather than spreading to other tokens within the protocol. Since the introduction of money markets for new token assets does not introduce systemic risk to Silo, roll-out of new markets will not require governance approval in the future.
+The core function of Silo is to allow for the creation of money markets for all token assets. Specifically, it allows users to:
+# Deposit tokens and earn interest from borrowers.
+# Use deposited tokens as collateral and borrow tokens from other users.
+The primary value proposition of Silo is its risk-isolated money market design, in which every token has their own silo as opposed to all tokens being collected into a single pool. The benefit of this is that exploits in a single token are isolated to that tokens silo only - lenders in other silos are completely unaffected. This risk-isolated design allows Silo to list long-tail assets and service a larger market than its shared-pool competitors.
 ===== Stablecoin =====