What Silo Finance does

Silo Finance is a decentralized, non-custodial DeFi lending protocol operating across six blockchain networks (Ethereum, Arbitrum, Sonic, Avalanche, XDC, and Injective). The core product, Silo v3, is a permissionless money market built on risk-isolated lending markets called Silos, where each market contains two single-asset vaults (collateral and loan asset) and failures are contained at the market level rather than propagating systemically. The protocol's distinguishing technical feature is a dual liquidation system combining traditional Collateral-Sale liquidations with an internal Collateral-Debt Swap (CDS) engine that writes off borrower debt and distributes collateral directly to lenders, enabling guaranteed lender solvency without dependency on DEX liquidity. Supporting components include an oracle-agnostic architecture (Chainlink, RedStone, Pyth, DIA, ERC-4626 vault pricing), a modular Hooks system, ERC-4626 Multi-Asset Vaults managed by third parties, and a dynamic kink interest rate model. The protocol is governed by SiloDAO via the $SILO token (1B max supply, 41% in community treasury), with a small core team (11–50) at Silo Labs in Austin, Texas founded in 2021.

Silo serves three primary user segments: lenders/depositors seeking yield with isolation from cross-asset contagion; borrowers who can use a wide range of assets (including illiquid and real-world assets such as tokenized bonds, equities, commodities, and LP tokens) as collateral; and developers or vault managers who deploy isolated markets or ERC-4626 vaults with configurable risk parameters. There is no KYC, no platform fee on basic lending, and distribution is entirely self-serve via the app.silo.finance web interface with Web3 wallet connectivity. GTM is product-led and community-led, relying on Discord, governance forum, Twitter, Telegram, GitHub, and ecosystem incentives such as the Sonic Labs Sonic Points/Gems program.

The business model is indirect and protocol-native rather than transactional. Revenue is generated through (1) vault manager performance fees on Multi-Asset Vaults (set per vault, paid to third-party managers), (2) protocol-level fees configurable by SiloDAO governance, and (3) xSILO staking rewards tied to revenue distribution. The protocol itself does not charge end users directly; users only pay blockchain gas. No venture funding rounds are disclosed, and Silo Labs has not publicly reported revenue, ARR, or TVL figures in the available materials. Security posture is unusually mature for a DeFi protocol of this size, including Certora formal verification, audits by Enigma Dark, Spearbit Cantina, and Sigma Prime, a $350K Immunefi bug bounty, and Security Alliance Safe Harbor membership.

Name

Silo Finance

Legal name

Silo Labs

Website

https://silo.finance

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

Silo Finance operates a non-custodial, multi-chain DeFi lending protocol (Silo v3) with risk-isolated money markets and a dual liquidation system that guarantees lender solvency. It serves lenders, borrowers, and developers across Ethereum, Arbitrum, Sonic, Avalanche, XDC, and Injective.

Ownership category

akta.pro rank

Product category

DeFi Lending Protocol

NAICS

Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523), Other Investment Pools and Funds (5259)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Finance Services (6199)

akta.pro primary industry

Tokenized Collateral & On-Chain Credit Infrastructure (Collateral Mgmt, Liquidations) (FSAGAMAK)

akta.pro secondary industry

Liquidations, Insurance Funds & Backstop Liquidity Mechanisms (FSADAGAL)

Keywords

• DeFi lending protocol
• Isolated money markets
• Onchain lending
• Non-custodial borrowing
• Liquidity markets

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Vault Manager Performance Fees: Multi-Asset Vault managers can charge a performance fee — a percentage of the interest earned by the vault — as compensation for technical configuration and strategy design of vault deployments. This fee is configured by vault managers and does not create any fiduciary obligation.
2. Protocol Fees: SiloDAO can set protocol fees through governance. The protocol has implemented various fee configurations including StableHighCapv2 interest rate models and bridge USDC configurations across markets. Fee parameters are adjustable via on-chain governance proposals.
3. xSILO Staking Rewards: xSILO holders receive rewards from revenue distribution and early redemption fees. Rewards are automatically compounded, increasing the xSILO-to-SILO ratio over time. Early redemption incurs a vesting-based fee that benefits long-term stakers.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels8 records

Core offering

Silo Finance operates a non-custodial, onchain money market protocol (Silo v3) that enables permissionless lending and borrowing of crypto tokens. Each lending market is isolated (a "Silo") containing two single-asset vaults, and the protocol guarantees lender solvency through a dual liquidation system (collateral-sale plus internal Collateral-Debt Swap) that does not depend on DEX liquidity. It is deployed across Ethereum, Arbitrum, Avalanche, Sonic, XDC, and Injective, and supports multi-asset ERC-4626 vaults managed by third parties.

Product overview

Silo Finance is a multi-chain DeFi lending protocol consisting of Silo v3 as the core platform with isolated money markets where any token can borrow another. The protocol guarantees lender solvency through protocol-level mechanisms (not dependent on instant liquidity). The product portfolio includes Silo v3 Protocol (core lending), Multi-Asset Vaults (managed ERC-4626 vaults for yield optimization), Isolated Markets (single-asset silos for permissionless lending), $SILO token (governance), Sonic Rewards Program (points-based incentives), Developer SDK (ERC-4626 interface and hooks), Dynamic Interest Rate Model, Dual Liquidation System, SiloDAO Governance, and Analytics Dashboards. Currently deployed on Ethereum, Arbitrum, Avalanche, and Sonic with expansion to additional networks.

Differentiator

Problem solved

Functional benefit

Products and services

• Silo v3 Protocol Non-custodial DeFi lending protocol implementing isolated money markets where any token can borrow any other token, with protocol-level lender solvency guarantees.
• Isolated Markets (Silos) Permissionless risk-isolated lending markets on the Silo protocol where users supply single assets to earn yield.
• Multi-Asset Vaults ERC-4626 vault contracts managed by third-party vault managers that allocate user deposits across multiple isolated lending markets to optimize yield while managing risk.
• $SILO Token Native governance and utility token of the Silo Protocol with 1 billion max circulating supply; 41% allocated to Community Treasury controlled by SiloDAO.
• Sonic Rewards Program Points-based rewards program on the Sonic network combining Silo Points (Sonic Gems) and Sonic Points to incentivize deposits and borrows.
• Developer SDK Developer tools and APIs including ERC-4626 interface, Hooks system for custom lending market logic, and subgraph APIs for integrating with the Silo protocol.

Quantifiable outcome

• Lenders protected against bad debt under all market conditions including illiquid or stressed markets
• +3 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature8 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Sonic LabscoreStrategic or Co-development PartnerSonic Labs partnered with Silo Finance to deploy Silo Sonic, bringing isolated lending markets to the Sonic network. Sonic Labs' rewards program allocated 190,500,000 $S tokens to Sonic users and applications including Silo Sonic, with Season 1 scheduled to conclude in June 2025. Silo commits to distributing 90% of its share of Sonic Gems to Silo Point holders.
• ChainlinkcoreTechnology or IntegrationChainlink provides oracle services for price feeds (wS/USD, USDC/USD via Chainlink data on Sonic) and the Chainlink Transporter bridge for cross-chain token transfers of $SILO and xSILO between Ethereum, Arbitrum, Avalanche, and Sonic networks.
• CertoracoreOthersCertora conducted multiple security audits and formal verification of Silo v2 Core, Silo v3, Silo Vaults, Leverage module, and SILO token contracts. Provided both manual audit reports and formal verification coverage reports for smart contract correctness.
• Enigma DarkcoreOthersEnigma Dark conducted security audits of Silo v2 Core and Silo v3, providing best-efforts security reviews to identify vulnerabilities and smart contract risks.
• Spearbit CantinacoreOthersSpearbit Cantina conducted audits of Silo v2 and the Interest Rate Model (dIRM), providing security assessment and code review services for the protocol.
• Sigma PrimecoreOthersSigma Prime conducted security assessments of Silo v2 Core and Silo Vaults, identifying and verifying resolution of security issues in the protocol.
• Code4renaminorOthersCode4rena hosted an audit contest for Silo Vaults (March 2025), attracting multiple security researchers to review the codebase and identify previously undetected issues.
• RedStonecoreTechnology or IntegrationRedStone provides contract rate oracle feeds for certain Silo markets, including the stS/S market on Sonic network. RedStone oracles report fundamental values like staking contract redemption rates rather than market prices.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Aave: Aave is the largest decentralized lending protocol with pooled markets across multiple chains. Like Silo, it enables permissionless lending and borrowing of crypto assets, but uses pooled (not isolated) risk architecture and relies on DEX-style liquidations. Direct competition for lender and borrower flow.
• Compound: Compound is one of the foundational DeFi lending protocols with algorithmic interest rates and pooled markets. Serves the same lender/borrower segments as Silo but lacks isolated markets and the CDS-based solvency guarantee. Comparable product category with differentiated risk architecture.
• Morpho: Morpho is a decentralized lending protocol built on top of Aave and Compound that introduces peer-to-peer matching and optimized interest rates via Morpho Blue. Closely comparable to Silo's modular, market-isolation approach; both target improved capital efficiency over pooled lending.
• Euler Finance: Euler is a permissionless lending protocol with isolated lending markets organized into ERC-4626 vaults. The most architecturally similar competitor to Silo—same isolation philosophy, same vault standard, same permissionless market creation model. Direct head-to-head in the modular DeFi lending category.
• Spark Protocol: Spark is the MakerDAO-affiliated lending protocol that issues DAI against crypto and RWA collateral. Comparable in targeting long-tail collateral and RWA support, with strong institutional backing. A broad direct peer with similar positioning on collateral flexibility.
• Radiant Capital: Radiant is an omnichain money market enabling cross-chain lending and borrowing across Arbitrum, BNB Chain, and Ethereum. Shares Silo's multi-chain strategy and targets similar cross-chain liquidity use cases, though uses pooled rather than isolated markets.

Broad incumbents

• Goldfinch: Goldfinch is a decentralized credit protocol focused on real-world lending to borrowers in emerging markets. Comparable as a DeFi credit infrastructure project, but operates in off-chain lending markets rather than on-chain asset lending like Silo.
• Maple Finance: Maple is an institutional-grade DeFi credit platform offering undercollateralized loans to crypto-native institutions. Comparable as on-chain credit infrastructure serving sophisticated borrowers, but its pooled-tranche model differs from Silo's isolated-market approach.
• MakerDAO: MakerDAO operates the DAI stablecoin system via collateralized debt positions against crypto and RWA collateral. Comparable as foundational DeFi credit infrastructure with deep institutional adoption; competes indirectly via Spark Protocol for the same lending market segments Silo targets.

Emerging players

• Pendle Finance: Pendle enables yield tokenization and trading on DeFi yield-bearing assets. Comparable as yield-optimization infrastructure that integrates with lending protocols like Silo; serves overlapping sophisticated DeFi users seeking yield enhancement strategies.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• GitHubgithub.com/silo-finance
• Xx.com/SiloFinance
• LinkedInlinkedin.com/company/silo-finance

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Silo Finance