# Silo Finance

> The money market for everything onchain

Silo Finance is a decentralized lending protocol that provides isolated money markets for onchain assets. It lets users lend and borrow against individual tokens without exposure to risks from other markets on the platform.

Silo Finance is a decentralized lending protocol that provides isolated money markets for onchain assets. Each token has its own separate lending market, letting users deposit collateral and borrow against it or lend assets to earn yield without exposure to risk from other tokens on the platform. The protocol targets holders of a wide range of assets, including illiquid or long-tail tokens that centralized money markets typically exclude.

Silo addresses the risk of cross-asset contagion common in shared-pool lending markets by isolating each market at the smart contract level, so a collapse in one token's price cannot create bad debt elsewhere. When a borrower is liquidated, the underlying collateral is delivered directly to lenders rather than relying on decentralized exchange liquidity, which allows markets to function even for assets with limited trading depth. Lenders can earn yield from borrower interest, liquidation fees, and collateral value appreciation.

The protocol offers permissionless market creation alongside curated vaults, letting third-party managers build single-asset or multi-asset vault strategies for lenders seeking diversified exposure. Silo operates across multiple EVM-compatible networks, including Ethereum, Arbitrum, Avalanche, and Sonic. It is used by lenders seeking yield, borrowers seeking collateralized credit, and asset issuers seeking a market for tokens that lack deep liquidity elsewhere.

- Type: Company
- Sector: DeFi
- Status: Active
- Profile: https://thegrid.id/profiles/silo_finance

## Products

- [Silo](https://thegrid.id/profiles/silo_finance): Silo is a decentralized lending protocol that lets users borrow against, and lend, virtually any onchain token through isolated, risk-contained markets. Each market pairs a specific asset with a bridge asset so that risk in one market cannot spread to others, and lenders can access vaults that pool deposits across several isolated markets for diversified yield. Borrowers pay variable interest based on utilization, while lenders earn from borrower interest, liquidation fees, and upside on collateral received during liquidations. (Decentralised Borrowing & Lending, Live, Main Product)

## Assets

- [Silo Governance Token (SILO)](https://thegrid.id/profiles/silo_finance): SILO is the governance token of Silo Finance. It is used to vote on protocol decisions and delegate voting rights, as well as to deploy new lending markets and adjust market parameters. The protocol allocates half of its revenue to buy back SILO tokens from the open market, which are then distributed to the xSILO staking contract, allowing holders to earn protocol revenue by staking their tokens. (Governance)
- [xSILO (xSILO)](https://thegrid.id/profiles/silo_finance): xSILO is a liquid staking token representing staked SILO on Silo Finance. It is used for governance participation and to receive protocol revenue distributions, with rewards from protocol revenue and redemption fees auto-compounded. Implemented as an ERC-4626 contract, xSILO accrues yield based on an index ratio that increases over time, letting holders redeem more SILO than they originally staked. (Liquid Staking Tokens (LSTs))

## Links

- [Main](https://silo.finance)
- [Documentation](https://docs.silo.finance)
- [Governance](https://gov.silo.finance)
- [Terms of Service](https://silo.finance/terms-of-use)
- [Media Kit/branding](https://docs.silo.finance/docs/additional-info/brand-assets)
- [Twitter / X](https://x.com/SiloFinance)
- [Discord](https://discord.gg/silo-finance)
- [Telegram](https://t.me/SiloFinance)
- [GitHub](https://github.com/silo-finance)
- [Telegram](https://t.me/silo_finance)
- [LinkedIn](https://www.linkedin.com/company/silo-finance)
- [YouTube](https://www.youtube.com/@silofinance1842/videos)

## Legal

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- [Data Licensing & Disclaimers](https://about.thegrid.id/legal/data-licensing-and-disclaimers): Licensing models and disclaimers
- [Open Data (ODbL)](https://about.thegrid.id/legal/open-data): Open Database License terms and scope for The Grid's open data service.
- [Attribution Guidelines](https://about.thegrid.id/legal/open-data-attribution-guidelines): How to attribute The Grid's data when using the open data service.
- [Web Services Terms](https://about.thegrid.id/legal/web-services-terms): commercial Terms for using data services.
- [All Legal Documents](https://about.thegrid.id/legal): Full index of terms, policies, and disclosures

## Optional

- [TGS Field Descriptions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/tgs-field-descriptions.md): Schema field definitions for The Grid's data model
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- [Product Type Definitions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-definitions.md): Definitions for each product type
- [Product Type Classification](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-classification.md): Guide for classifying products into types
- [Grid MCP Guide](https://github.com/The-Grid-Data/workspace-public/blob/main/grid-search/skills/grid-query/references/grid-mcp-guide.md): How to query The Grid programmatically via MCP