SILO - Risk Isolator

• permissionless & risk-isolated lending protocol

• any token asset can create a silo based on holder voting

• each silo is independent from exploit, tokens in other silo are not affected

Shared pool vs. Silo pool

• shared pool put all deposited tokens into same pool, any exploit to collaterals or price oracle affects all tokes in the pool

• silo pairs token to only bridge assets (ETH or XAI), lenders are only exposed to the risk of bridge assets, this also optimise efficiency by a 'bridge asset to all' market

How Silo works

• deposit any supported token as collateral

• borrow bridge asset ETH or XAI

• redeposit bridge asset as collateral to borrow any supported tokens

• token in each Silo are isolated from exploit

Protected Deposit

• deposited collaterals are used for loan but not borrowed to any others

• this prevents from bad actors to borrow & manipulate governance tokens

  • to vote for a harming result in governance voting

  • build a short position & sell for a cascading liquidations