- Summary:
- More than $400M is already locked into Silo V2, where Sonic users can earn yield on their capital while mitigating risk.
Silo, the non-custodial DeFi lending marketplace, has launched its V2 protocol on Sonic, enabling users of the high-performance L1 network to access risk-isolated markets. The V2 launch follows extensive auditing and brings programmable lending markets to Sonic for the first time.
The successful completion of multiple audits has enabled Silo V2 to exit beta and commence rolling out isolated lending markets across multiple chains starting with Sonic. More than $400M is already locked into Silo V2, where Sonic users can earn yield on their capital while mitigating risk. Future chain expansion includes Mainnet, Arbitrum, Base, and many other EVM L2 and EVM-compatible chains.
Silo V2 builds on the success of V1, which has facilitated loans worth hundreds of millions of dollars across over 50 isolated lending pools on Ethereum and numerous Layer 2s, maintaining an unbroken record of solvency. The enhanced V2 protocol introduces customizable twin-asset lending markets for any ERC-20 token, allowing deployers to tailor loan-to-value (LTV) ratios, liquidation thresholds, oracles, and interest rate models.
Key features of Silo V2 include permissionless market deployment and optional “hooks” that support new functionality, such as interconnecting market clusters, deploying idle liquidity to other dapps for yield, or creating fixed-term and permissioned markets for regulated assets. The use of the ERC-4626 standard ensures seamless third-party integrations.
Modular liquidation and interest rate options with V2 – ranging from traditional to auction-based or fixed-rate – offer flexibility for diverse assets like stablecoins or real-world assets (RWAs). A dual-oracle system further reduces bad debt risk by separating LTV and liquidation threshold calculations.
The V2 launch also introduces deployer revenue, an optional fee on interest and incentives that accrues to market creators as an ERC-721 token, incentivizing tailored market development. Silo V2’s isolated design mitigates systemic risks synonymous with traditional pooled lending.
Silo V2 on Sonic has been designed to provide secure, adaptable lending solutions. Its programmable markets allow deployers to address specific needs, whether optimizing yield or managing risk, while maintaining the isolation that protects users from broader system failures.
Sonic’s high-speed infrastructure supports Silo V2 with its focus on scalability and developer tools, enhancing the lending platform’s ability to unlock new use cases for decentralized lending.
About Silo
Silo is a non-custodial DeFi marketplace matching lenders and borrowers in isolated lending pools. Silo operates across multiple chains with hundreds of millions of dollars in TVL. V2 introduces programmable lending markets, expanding flexibility and risk isolation for DeFi users, allowing lenders to do more with their digital assets.Learn more: https://silo.finance/