Silo Finance

Silo Finance uses an isolated-pool lending approach that aims to be more secure than regular shared-pool DeFi lending platforms.

Each token asset has its own lending market and is paired with bridge assets ETH and XAI.

Lenders are exposed only to the risk of ETH and XAI, and if a token experiences an exploit, lenders in other markets remain unaffected.

Lenders deposit funds into an isolated lending market consisting of a token and its bridge asset only.

Since all tokens are paired with ETH or XAI, there is a single market per asset, preventing fractured liquidity and improving efficiency.

This contrasts with traditional lending models that create a new market for every additional token pairing.