Overview of Sonic Gems and Silo Points

1

Sonic has released a leaderboard showcasing the top apps earning Gems, with Silo leading the pack at over 774K Gems. We thought it was the perfect time to explain the Gems Program and its connection to Silo Points.

|624x418.31914202144947
|624x418.319142021449471600×1073 141 KB

Sonic Gems

Apps like Silo can redeem their Gems for a portion of 37.5% of the total Sonic Airdrop. Silo users will receive 90% of Silo’s Gems through Silo Points—this is in addition to the direct airdrop via Sonic Points, which accounts for 62.5% of the total airdrop.

Gems Allocation

  • 90% to users: Rewarding the community.
  • 10% to Silo Protocol: We’ll use these Gems to fuel Silo’s growth on Sonic, investing in user incentives and initiatives that benefit both the protocol and its users.

Earning Silo Points

Silo users earn two types of Silo Points:

  • Base Points, and
  • Multipliers

1- Base Points

  • Deposits: 1 Silo Point per $1 deposited per day
  • Borrows: 0.5 Silo Points per $1 borrowed per day

2- Multipliers

You will receive multipliers on top of Base Points when you take specific actions on Silo Sonic. You can find all actions eligible for multipliers on Silo Points page.

Ensuring Accurate Silo Points

To maintain transparency and fairness:

  • We’ve published the Silo Points methodology for anyone to verify: GitHub Link.
  • We’re collaborating with external auditors to guarantee accurate point allocation.
  • We are slashing points earned by users depositing non-borrowable assets and borrowing tiny amounts to exploit the system. This ensures fair distribution and prevents dilution for genuine users. Learn more: Silo Points Overview.

Gems Distribution

After Sonic Season 1, Silo will allocate $S to users through the following process:

  • Silo makes public a list of addresses along with their associated points balances at some point before the commencement of the distribution.
  • Silo mints an ERC-20 token, let’s call ExampleToken, in an amount equivalent to the total Silo Points.
  • Users holding Silo Points claim ExampleToken in proportion to their share of the total accumulated Silo Points.
  • ExampleToken holders can exchange their ERC-20 tokens for $S.

Resources