cipher
151 posts
cipher
@0x_Layer2
In crypto since 2016 In for the tech DeFi lover
Greece Katılım Mayıs 2010
510 Takip Edilen42 Takipçiler
Recovery Update after Accident
1/ Following the incident with Credix exposure in MetaVaults, we’ve prepared detailed recovery terms.
Full doc here:
stabilitydao.gitbook.io/stability/risk…
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@SiloFinance for sonic for example when the repay is so low, nobody can withdraw any position still right? I mean not a single person withdrew correct?
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📢 Additional Stream Repayment Update
Latest confirmed repayments across xUSD/USDC markets:
• Sonic: ~$88,169 (112)
• Avalanche: ~$556,669 (129)
• Arbitrum: ~$1.49M (146)
Total confirmed repayments tied to xUSD/Stream now stand at ~$2.13M
More updates to follow as progress continues.
Silo Labs | V3 Live@SiloFinance
🔈 Stream Recovery Update: ~$1.49M USDC has been repaid to the xUSD/USDC Arbitrum market, which enabled many users to withdraw part of their funds, primarily through the Varlamore vault. We thank the borrower for making the repayment, and we remain committed to helping users recover as much as possible. Track progress 👇
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@stabilitydao yeah what happens to this #gid=41265706" target="_blank" rel="nofollow noopener">docs.google.com/spreadsheets/d…
that you had shared
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SIP-1: xSTBL instant exit fee 50% -> 80%
Changes:
- Type: Change DAO parameter
- Parameter: xSTBL instant exit fee
- Old value: 50%
- New value: 80%
Goals:
- Fewer instant exits
- More PvP rewards
- Better setup for use xSTBL as incentives
Link: snapshot.box/#/s:stabilityd…
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cipher retweetledi
Dear @SiloFinance team,
Thank you for the detailed response.
I appreciate the clarifications on protocol design and legal actions taken. However, several critical concerns remain unaddressed:
1️⃣ DAO Governance vs. Unilateral Decisions
You state that Silo operates as a DAO where SILO token holders have voting power over treasury management and protocol decisions . Yet, the decision that "the DAO will not compensate lenders" (Point 7) appears to have been made unilaterally without community vote.
On behalf of the community, I request:
Formal DAO proposal on @SnapshotLabs presenting multiple options:
– Option A: No compensation (current stance)
– Option B: Partial treasury-funded compensation (e.g., 25-50% haircut)
– Option C: SILO token dilution to create compensation fund
– Option D: Revenue-sharing from future protocol fees until affected users are made whole
Let SILO token holders decide through governance, not the core team.
2️⃣ Reputation Damage ≠ Legal Liability
While I understand Silo's legal position, users will associate the Silo brand with this $60M loss regardless of ToS disclaimers.
This is already evident:
• TVL down 22% in 5 days ($143.7M → $111.7M)
• Affected users will never return without resolution
• New users will choose competitors (Aave, Morpho, Compound) with clean track records
• Every DeFi community discussion about Silo will mention "the $60M incident"
The question isn't "Are we legally liable?"
It's "Can Silo survive reputationally without proactive action?"
3️⃣ Weekly Legal Updates
You mention legal proceedings have been initiated, and it's very much appreciated. Transparency requires regular updates:
• Weekly or bi-weekly public updates on:
• Legal proceedings status (filings, responses, court dates)
• Negotiations with Stream Finance/Stable Labs
• Recovery timeline estimates
• Any settlements or repayments received
4️⃣ UI Transparency
Hiding affected markets while promoting new vaults creates perception of cover-up, regardless of intent.
I strongly advise to:
– Restore UI visibility with clear red warning banners:
"⚠️ This market is affected by the Stream Finance incident. Withdrawals are currently frozen. [Learn more]"
– Dedicated status page showing exact frozen amounts per market, recovery progress, legal action updates
5️⃣ The Permissionless Protocol Paradox
You correctly note that Silo's markets are permissionless and immutable.
However:
• Uniswap doesn't promote specific pools. Users create them independently
• Silo actively promoted Managed Vaults through official channels
• This creates implied endorsement, even if legally disclaimed
If Silo wants to maintain "neutral infrastructure" positioning, it must:
• Stop promoting specific vaults/markets
• Implement risk ratings (A/B/C/D) for all markets
• Require independent audits for any vault featured on official UI
***
The DeFi community values protocols that acknowledge mistakes and let governance decide on solutions. Hiding behind terms of service while promoting new products will permanently damage trust.
This is your chance to either build a strong community by proactively seeking ways to compensate users or risk destroying your reputation entirely.
Assisting affected users will provide long-term value, even if your compensation covers only a fraction of the loss - such as through vested or staked tokens, for example.
PS: Appreciate that you reply to my messages publicly, this is a green flag for the entire community.
Silo Labs | V3 Live@SiloFinance
We acknowledge the community’s concerns and share the frustration caused by the Stream and Stable Labs incidents. However, several points in your letter require clarification: 1️⃣ Protocol Design Silo’s lending markets are immutable and permissionless, much like Uniswap pools. The DAO cannot control, pause, or conduct economic reviews of collateral assets. Stream Finance and Stable Labs are independent issuers — they alone bear responsibility for their assets’ failure. Like all DeFi protocols, Silo depends on external oracles, issuer redemption mechanisms, and DEX liquidity. These are the known and disclosed sources of risk. 2️⃣ Root Cause Liquidations failed because Stream and Stable Labs unilaterally disabled redemptions of their tokens, freezing liquidity. Silo’s liquidations are open to all; the core team attempted to execute them immediately once the issue was identified. However, the issuers’ redemption lock made liquidation technically impossible. 3️⃣ Transparency & Legal Action Silo has published a verified registry of affected lenders to preserve on-chain evidence and support restitution: 🔗 Full announcement: silofinance.medium.com/19c6b1f13a5b The DAO has also initiated legal proceedings against Stream and Stable Labs — the first protocol to do so. (If this was missed, we encourage a review of our public updates.) 4️⃣ UI & Data Integrity Interest continues to accrue in immutable markets, which can distort total deposit metrics. To protect new users, affected markets were removed from the public UI, while all positions remain accessible via dashboard to existing lenders. This is a protective measure — not an attempt to conceal data. 5️⃣ Independence & Neutrality Silo DAO has no association with any vault manager, including Varlamore Capital. The protocol and its interface remain neutral, transparent, and data-driven, enabling users to make independent, informed decisions. 6️⃣ User Risk Acknowledgment Silo’s Terms of Use clearly outline risks and responsibilities. The lending application requires users to acknowledge the risks associated with using permissionless lending markets (summary below): a- Markets are immutable and beyond Silo Labs’ control. b- Users are solely responsible for evaluating and assuming risk. c- Managed Vaults and markets may involve multi-asset exposure, which users must understand before proceeding. 7️⃣ Restitution & Responsibility Under Silo DAO’s Terms of Use, the DAO does not and will not compensate lenders. Users interact directly with permissionless vaults and bear exposure to asset issuers, not the protocol. Restitution must therefore be sought from Stream Finance and Stable Labs, the direct counterparties responsible for their obligations.
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cipher retweetledi
Silo DAO is preparing legal action to defend its community.
We stand by our lenders who’ve been impacted by Stream Finance’s failure to repay standing loans and redeem xUSD and xBTC.
Here’s what’s happening and how you can participate 👇
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@VarlamoreCap please.. lost like 90% of all my net worth (it aint much, sub $10k) since i trusted defi yield more than my banks apy (sub 0,5%)
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We are actively engaging in Silo’s ongoing process to restore Liquidity Providers affected by Stream’s recently announced shortfall.
For anyone affected please fill out the form here.
No stone will be left unturned to recover user funds.
Silo Labs | V3 Live@SiloFinance
6/ To assess participation and readiness, we’re gathering input from lenders through a short form. 👉 Fill out the participation form: forms.gle/JEnWws49u6AVVp… Your input matters — it helps shape the DAO’s collective action.
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@AllowNegative @SiloFinance for sonic airdrop season1 they were used to distribute the S Silo received. For season2 it will be the same as far as im aware
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@SiloFinance You ever gonna tell us what the fuck silo points are for? Or just a scam gimmick to pull people to your platform??
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@SiloFinance What happens with the xUSD vaults and earn where we cant withdraw USDC from?
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SiloDAO’s October report is out.
$424M TVL
$210K in revenue
$82K USDC shared with xSILO holders
Arbitrum grew +176% via DRIP, Avalanche led liquidity, and Injective joins as a Day 1 launch partner.
Read more 👇
medium.com/silo-protocol/…
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We’re aware of the ongoing Balancer exploit!
Silo has zero exposure. Neither the protocol nor any Silo markets are affected. Everything is secure and operating normally!
Stay safe! #SiloFinance
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@jchoop @stabilitydao @SiloFinance ?No response from @SiloFinance after a week. No info about it anywhere.@SiloIntern
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@stabilitydao Whats the go with people who were just supplying sonic on silo to the wmetaS/S market?
v2.silo.finance/markets/sonic/…
When will my sonic be withdrawable?
@SiloFinance
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Finally found my groove in betting with @Overtime_io. The sleek UX and option to dive in with just a social login? Absolutely clutch! overtimemarkets.xyz
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cipher retweetledi
cipher retweetledi
GM $MLH Miners! 🧵
MLH Total Hashrate just surpassed 400,000, meaning 400,000 $S has been burned to mint $MLH — a major milestone for the ecosystem.
#MLH 2.0 is right around the corner.
@SonicLabs @SonicAssistant @SonicEcosystem @Intern4Sonic @SonicLabsCN @seasun0x
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