Ali Smith retweetledi
One of the most interesting evolutions / experiments in DeFi lending just went live.
We've always assumed that in a liquidation scenario, the lender needs to be repaid in the assets that they lent.
It turns out this creates lots of issues and limitations. What if there's no dex liquidity? what if the asset has a redemption delay? what if the lender is also just has happy taking the collateral?
Silo v3 challenges this fundamental assumption by asking, what if -- in addition to a standard liquidation threshold -- you had a collateral swap threshold, where the collateral gets returned to the lender instead of the lent assets.
Of course the risks are different. But this type of structure can more cleanly support more collateral assets that may not look like your conventional DeFi token. As RWA's come onchain with all kinds of sizes and shapes, having more flexibility in the lending market allows for more possibilities. A new kind of more flexible money lego.
Silo Labs | V3 Live@SiloFinance
Silo v3 is LIVE. Silo introduces the safest lending markets in DeFi. We rebuilt the core assumption behind lending: collateral does not need to be sold to keep markets solvent. That shift puts lender protection first — and makes yield more durable. Here’s how 👇
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