Summary:
Proposal to add SILO/FRAX Factory Pool to the Gauge Controller to enable users to assign gauge weight and mint CRV. SILO is a lending protocol which mitigates risks by design. It implements isolated money markets (called Silos). It is in Silo and Frax’s interest to promote deep liquidity for SILO and FRAX on Ethereum in order to advance the on-chain stablecoin and lending ecosystem in DeFi.
References/Useful links:
Website: https://www.silo.finance/
Token Address: 0x6f80310ca7f2c654691d1383149fa1a57d8ab1f8
Twitter: https://twitter.com/SiloFinance
Medium: Silo – Medium
GitHub: https://github.com/silo-finance (repo will be public following audits)
Protocol Description:
SILO is an ERC20 token issued by Silo Finance. Silo Finance is a lending protocol which mitigates risks by design. It implements isolated money markets (called Silos). Each Silo consists of two assets only, the bridge asset and a unique token. By isolating the risk of any asset to a specific silo, new and higher-risk assets can be immediately utilized in lending markets without causing systemic risk to assets held in other Silos.
Silo works closely with a group of thought leaders and builders in DeFi, including Sam Kazemian from Frax. Notably, Silo would like to use FRAX as part of its planned v2 LP which will allow both protocols to grow symbiotically within the Curve/Convex ecosystem.
Recognizing the importance of Curve.Fi to the DeFi ecosystem, Silo DAO has entered the Curve Wars by exchanging 4.41M USDC for ~250,000 CVX. Locked as vlCVX, Silo Finance intends to use these tokens to generate treasury revenue and incentivize liquidity for our SILO:FRAX LP without increasing native emissions.
Motivation:
Curve is the cornerstone of modern decentralized finance. With this pool set up for a gauge, an incentivized inclusion on Curve provides visibility to SILO and brings a mature ecosystem with existing integrations to other protocols. Curve incentivization would help deepen the liquidity of SILO and help it reach critical mass to become a widely-adopted lending platform with deep liquidity
Specifications:
1. Governance: The SILO token contract was deployed by the Silo Finance core team. The current owner of the protocol is Silo DAO (openzeppelin governance bravo) Tally | Silo. The DAO controls its funds. The core team’s 2/3 multisig wallet on Ethereum (0xDfF2aeA378e41632E45306A6dE26A7E0Fd93AB07) doesn’t control the DAO’s funds.
2. Oracles: Silo Finance uses Uniswap v3, Balancer v2 price feed to get the prices of the collaterals. More oracle integrations are planned following beta.
3. Audits: The first measure to mitigate security risk is to write codebase from the bottom up rather than reengineer a fork. This is what we’ve done. Silo’s codebase is 100% original. The decision mitigates significant security risks and opens up the protocol to numerous design choices as we build towards our vision. Silo is being audited by Quantstamp. A second audit by ABDK will begin on March 28th 2022.
4. Centralization vectors: Silo Finance’s governance multi-sig has the right to modify the lending protocol’s parameters, such as changing price oracle, liquidation ratio, etc. This set up allows the Silo Finance core contributors to have maximum flexibility, ensuring that they are in-line with market demand.
5. Market History: The SILO token launched on Ethereum in January 2022. First, the team raised a seed round from known builders in the space (listed on the website, and later bootstrapping occurred via a public Gnosis auction with the protocol currently in beta prior to full launch in April/May 2022.