Silo is a non-custodial lending protocol that enables users to create permissionless and risk-isolated markets. Through their novel approach, Silo attempts to bring a more secure alternative to existing shared-pool markets, where every token asset has its own isolated pool. Silo has been live on Ethereum for over a year and has recently expanded to Arbitrum with combined TVL nearing $45m.
By welcoming Silo to the Round Table, Camelot is committed to supporting deep and sustainable liquidity for $SILO on Arbitrum. As the Arbitrum native DEX, we’re proud to support their growth in the ecosystem.
The Silo team has migrated their PoL to Camelot, with dual incentives for SILO/ETH now live!
A partnership to support innovation on Arbitrum
Camelot is a custom-built protocol that aims to become the native Arbitrum DEX. By building multiple novel features from the ground up, Camelot enables higher capital efficiency and attempts to bring the real-yield approach to a DEX.
Camelot is designed to move away from the standard short-term yield farm model to prioritize long-term and sticky liquidity. Therefore, we’re excited to build deep and sustainable liquidity for Silo through our custom features, such as Nitro pools, dynamic fees, and spNFTS. Through this partnership, Silo will be seeding the initial pool with protocol-owned liquidity, with $GRAIL incentives being matched with $SILO rewards additionally. This means that users will be able to earn sustainable dual liquidity mining rewards on their SILO/ETH positions. Silo’s novel products will allow for composable innovation on Arbitrum, so we’re therefore proud to reinforce further collaboration on the network.
Silo has been building novel isolated markets on Ethereum and has recently deployed and bridged to Arbitrum, offering attractive & isolated markets for native tokens like $ARB, $UMAMI, and $DPX. We’re proud to support them on Arbitrum by welcoming them to the Round Table, and we’re committed to a long-term relationship that provides them with a bespoke service.
The Round Table comprises the key Arbitrum builders, and we are excited that this partnership will further align the ecosystem with collaborating, innovating, and building.
Silo’s novel approach to lending attempts to create a more secure model than regular shared-pool DeFi lending platforms. Shared-pool lending protocols also can’t scale to accept long-tail assets, whereas Silo’s approach allows for risk isolation and scaling.
Silo Arbitrum uses an isolated-pool approach where every token asset has its own lending market and is paired against the bridge assets ETH and USDC. Lenders in each silo are only exposed to the risk of ETH and USDC at any given time as well as the base asset. Lenders deposit funds into an isolated lending market consisting of Token ABC and the bridge asset only. If Token XYZ experiences an exploit, Token ABC lenders will not be affected since the risk is isolated to the Token XYZ market.
In addition, since all tokens are paired with ETH or USDC, there is only a single market for every token asset, preventing fractured liquidity and allowing greater protocol efficiency. This is as opposed to pure lending pair approaches, where a new lending market is created for each additional pairing.
Silo Ethereum features XAI, Silo’s overcollateralized stablecoin, in place of USDC as the second bridge asset. The integration of XAI throughout the Silo platform allows for the deployment of strategic credit lines that can be used to bootstrap lend-side liquidity in any given silo. This creates a new path for cross-asset lending and opens up avenues for leverage, shorting, and borrowing to farm in each of Silo’s markets.
Silo will be working with the Camelot team to build integrations with protocols that allow for seamless integration of liquidations. This will allow for the deployment of lending markets on Silo for any token that has liquidity on Camelot. We believe that this will be a highly synergistic relationship for both protocols and we are eager to push this collaboration to the next stage.
Custom-built Liquidity Infrastructure
Camelot’s vision is to build innovative infrastructure that supports other Arbitrum builders through unique custom features:
- Unique AMM implementation that supports volatile & stable assets with dynamic fees (custom fees per pool, as well as per buy or sell direction)
- A custom NFT wrapper for staked positions that allows LPs to be reused for further capital efficiency gains
- Nitro pools allow protocols to incentivize liquidity based on custom requirements permissionlessly
- Innovative escrowed tokenomics that enable a more sustainable protocol that can capture real yield for holders
Camelot will leverage all its unique features to ensure that liquidity is deep and adaptable — tailored to what is most effective for $SILO liquidity. For example, Nitro pools will allow Silo to incentivize liquidity in a custom way, such as by only rewarding LPs that lock for a certain time and deposit over a certain amount.
In addition, we could set custom fees for Silo pools or add even further custom requirements to Nitro pools. This high level of control will allow us to support the Silo DAO in building an efficient rewards structure for their token liquidity. Therefore, we can enable highly efficient returns on Silo liquidity while bootstrapping critical infrastructure that benefits the entire ecosystem.
Most importantly, by welcoming Silo to the Round Table and building deep liquidity for their token, we hope to foster further innovation within the Arbitrum ecosystem. For example, deeper liquidity for Silo could open up new opportunities for use in other DeFi primitives.
The quest for $GRAIL
The Camelot Castle has quickly become the natural home for Arbitrum native protocols, and we’re excited to be supporting so many builders.
In just over three months, Camelot has over $100m TVL, with over $1,200,000,000 in total traded volume. The Round Table has expanded significantly, with Vela, Justbet, Factor, Perpy, Plutus, and many more joining the ranks. We recently started the launch process for our v2, with the first stage being the release of our v3 concentrated liquidity AMM. In the coming weeks, we will further roll out our UI update and high-efficiency farms.
We’re proud to be supporting the entire Arbitrum ecosystem, and we thank our Knights for their loyal support.