⟦ LINKS ⟧
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⟦ SUMMARY ⟧
Silo Finance offers high APR on ETH through yield farming and leveraging collateral for potential high leverage, but with the risk of liquidation if OP incentives are not compounded.
⟦ CHAPTERS ⟧
00:00 Silo Finance solves the problem of exotic collateral in crypto by allowing users to use a variety of different collateral for their strategies.
01:11 Lenders can choose which markets to lend to in order to minimize risk and protocols can incentivize lending for specific assets through Silo Finance.
02:24 Exchange rate oracles ensure that you cannot get liquidated from market price dep pegging, as the value of the asset comes directly from the amount of eth backing it.
03:40 Silo Finance offers 100% APR on ETH through yield farming with no liquidation risk, interesting opportunities, and easy auto-leverage options.
04:09 Silo Finance offers 100% APR on ETH with the ability to leverage up to 6.57x on a max principal amount of 134 ETH, and there is a way to calculate points that is relatively indisputable.
05:07 The speaker calculates average APR for yield farming on Silo Finance and shows how to estimate the size of an airdrop based on total value locked.
06:50 Assuming certain factors, there is potential for a significant APR boost in ETH yield farming with Silo Finance.
07:56 Silo Finance offers high APR on ETH through yield farming, leveraging collateral for potential high leverage and a total potential APR of 11.7%, but with the risk of liquidation if OP incentives are not compounded.
“Disclaimer: I’m an ambassador for the following protocols, if I talk about any of thee protocols, please understand that I’m biased and this is not financial advice:
– Contango
– SummerFi
– Fraxtal
– Silo
– Gearbox
– Everclear”
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As we delve into Silo, a protocol that has made a name for itself by solving a long-standing issue in crypto – exotic collateral – it’s hard not to feel a sense of excitement. The problem that Silo aims to tackle is the risk associated with using untested collateral, which can lead to exploitable price fluctuations. By allowing users to select their desired level of exposure to different markets, Silo essentially takes on the risk of these markets, effectively isolating the lenders’ exposure.
One of the features that set Silo apart is its ability to incentivize lending for specific assets. This means that if a protocol wants to encourage borrowing against a particular asset, they can do so without affecting the loan pool.
Moving on to the topic of oracles, specifically exchange rate oracles, we see that these have become a crucial component in the Silo ecosystem. By providing an exchange rate that is pegged to the actual value of the asset, it becomes challenging for lenders to get liquidated due to market price fluctuations.
In the context of Easy eth on Optimism, we observe that the Oracle feed directly relates to the amount of ETH backing the Easy eth, rather than market price. This exchange rate oracle setup has proven to be a game-changer, significantly reducing the risk associated with lending against these exotic collateral assets.
As we explore the Kango protocol and its no-fee lending mechanism, it’s hard not to be impressed by the array of lending options available, including wo eth, which currently boasts a whopping 45% APR. With opportunities like this, it’s no wonder that Silo is attracting the attention of many in the crypto space. The protocol’s emphasis on allowing users to make informed decisions by providing clear and transparent information is one of the key reasons for its growing popularity.
