Silo USDC.e
Description
Silo is a novel lending protocol deployed on Ethereum and Arbitrum. Funds on Silo are deposited in isolated lending pools securing only a single asset of a user’s choice. The protocol stands out from other lending platforms like AAVE and Compound where funds are pooled together against a variety of whitelisted collateral assets.
The strategy provides funds to the wstETH silo, where deposited USDC.e are loaned out to users looking to borrow against their wstETH holdings.
Risk Level — 'A'
Narrative
The strategy earns yield based on demand for USDC.e liquidity paid by the borrowers on Silo, and therefore can be attributed to the real yield narrative.
Why invest?
The strategy benefits from elevated on-chain activity and can serve as a sustainable way to earn yield on USDC.e holdings by providing liquidity to the wstETH isolated lending market.
What’s inside?
User funds are converted into USDC.e and are deposited on Silo. Supplied USDC.e is used by the borrowers to take out loans against wstETH. In return, USDC.e lenders receive lending APY plus ARB incentives..
Safety Scoring
| Simplicity - 5/5 | Longevity - 5/5 | Protocol safety - 5/5 | Overall score - 5/5 |
|---|---|---|---|
Strategy is easy to understand and execute. No leverage is involved. Losses are highly unlikely. | Strategy has been running for more than 8 months with no critical issues and no changes in code base | Utilized protocol has been audited by ABDK, Quantstamp and Certora , and had no exploits or hacks in the past. There is an ongoing Bug Bounty campaign on Immunefi. | Low risk |
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