Silo, a non-custodial decentralized finance marketplace, has just announced the launch of its V2 protocol on Sonic, a high-performance Layer 1 network. This exciting development means that users on Sonic can now access lending markets where risks are kept separate, ensuring that any issues in one market do not affect the others. Following multiple security audits, Silo V2 is now live and has already seen $400 million locked into the platform.
The previous version, Silo V1, made a significant impact in the DeFi world by facilitating loans worth hundreds of millions of dollars across over 50 markets, all without any solvency issues or major problems.
One of the key features of Silo V2 is that users no longer need permission to create a market, making it open to anyone. Additionally, the introduction of “hooks” allows users to add new features such as connecting different markets, redirecting idle funds to other platforms for additional yield, or setting up fixed-term loans. By utilizing the ERC-4626 standard, Silo V2 can now communicate with other DeFi apps, making it easier to move funds and interact with different platforms.
In terms of risk management, Silo V2 now employs a dual-oracle system to separate LTV and liquidation threshold calculations, enhancing the accuracy of risk assessment and reducing the likelihood of bad debt. Market creators can also earn fees on interest and incentives through an ERC-721 token, creating a new revenue stream while encouraging the development of diverse and competitive lending options.
Looking ahead, Silo plans to expand the rollout of V2 to Ethereum, Arbitrum, and Base, further extending its reach and solidifying its position in the DeFi space. With its combination of flexibility, security, and scalability, Silo V2 is set to revolutionize decentralized lending, making it more accessible and user-friendly than ever before.