A New Era for SiloDAO
TL;DR
- Activating revenue sharing with SILO holders immediately
- Launching spSILO Pendle pool on Arbitrum
- Launching Silo v2 Alpha
- Revealing product roadmap and revenue targets for 2025
Activating Revenue sharing
We propose the following revenue-sharing program:
- SiloDAO activates 100% revenue sharing with $SILO holders for 4 months (renewable) with a guaranteed distribution of $100K/month denominated in ETH.
- Distribute begins Nov 4, 2024.
- All $SILO holders are eligible to participate in the program.
- To grow the protocol’s revenue and revenue distribution, SiloDAO allocates 8M SILO tokens in incentives to users of the protocol across all deployments. The program will run for four months and will be managed by the core team.
This is the first step in the evolution of $SILO from a simple governance token into one that complements the DAO while benefiting from the Silo Protocol’s performance.
How to participate
If token holders pass the above proposal, token holders can participate by following three simple steps:
- Bridge $SILO onto Arbitrum via Arbitrum Bridge.
- Deposit $SILO into the SILO-WETH-USDC.e lending market.
- Claim earned ETH in the UI.
For extra yield, deposit $SILO directly into the spSILO Pendle pool. More below.
Staking $SILO on Pendle
$SILO holders can choose to deposit directly into Pendle’s spSILO pool to earn Silo’s revenue distributions in ETH, in addition to boosted yield from PENDLE rewards and swap fees.
Additionally, the Pendle spSILO pool creates a market for users to speculate on spSILO’s projected yield via:
-
PT-spSILO: purchase $SILO at a discount from the spot price (i.e., lock in fixed yield).
-
YT-spSILO: receive leveraged exposure to spSILO’s underlying yield.
Projected yield
spSILO’s yield APR is expected to be variable due to the following factors:
- The projected yield increases if SiloDAO generates revenue above the guaranteed distribution floor of $100K/month.
- ETH’s price can fluctuate in value, impacting the project yield as it denotes the revenue distribution.
- The staked proportion of circulating $SILO.
- $SILO’s market capitalization.
Here are the projected APRs, assuming 13.7% circulating supply and 50% $SILO staked:
| spSILO APR | Revenue Allocated | Metrics | |
|---|---|---|---|
| SILO Price | $100k/Month | FDV | MC |
| $0.03 | 70.07% | $25m | $3.425m |
| $0.05 | 35.04% | $50m | $6.85m |
| $0.10 | 17.52% | $100m | $13.7m |
| $0.20 | 8.76% | $200m | $27.4m |
Note
- Projected APRs do NOT include extra rewards earned by staking $SILO via the Pendle pool.
- ~55% of the total token supply cap (1bn) is owned by SiloDAO and reserved for future community and developer incentive programs.
- ~15% of the total token supply cap is maintained on Mainnet for governance purposes.
- Roughly 15% of the supply cap remains unclaimed in vesting contracts.
- Numbers are projections only and will vary.
Bright future ahead of us
After rounds of internal audit and thorough testing, the core team has completed Silo the v2 codebase. While the code remains in audit, we are confident in releasing Silo v2 alpha.
Silo v2 alpha
With SiloDAO’s approval, we plan to deploy Silo v2 alpha immediately and roll out two adjacent programs as follows:
- Roll out several immutable isolated lending markets with low liquidity caps imposed on the UI only;
- Launch a new UI with limited features;
- Open Silo v2 Codebase under Business Source License 1.1 to the broader community for feedback;
- Partner Program for developing hooks-powered lending markets;
- Developer incentive program for hooks development;
Silo v2 codebase is scheduled for two more external code reviews (audits), one starting in the first week of November. As the audits successfully progress, caps on existing markets can be increased, and new markets can be rolled out. Once the audits are completed, we can move to the full growth phase - see the Growth roadmap.
The partner program
Using hooks, Silo v2 will bring unprecedented growth to the lending ecosystem. We have already lined up partnerships with major RWAs issuers, stablecoin issuers, and various dApp developers for hooks-powered lending markets that will scale DAOs’ revenue and attract high net-worth users to the platform.
The complete yield suite
In addition to lending and liquidity, the SiloDAO will release a standalone yield strategies application working on top of Silo’s v2 lending markets. The strategies will enable the following:
- 1-click leverage
- Delta-neutral
- Yield optimization
- Carry-trade
and much more…
