Lenders deposit funds into Silo Finance and receive interest payments from borrowers (supply-side fees).

Silo Finance is a non-custodial lending protocol built on Sonic and other EVM-based blockchains. Silo Finance was founded by Aiham Jaabari and launched in 2021.

SILO tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

governance

github

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Lending

Silo Finance

# Silo Finance Active loans Methodology

## 1. Overview

Active loans measures the total value of assets borrowed from Silo Finance lending markets. It represents the portion of deposited assets that are actively utilized by borrowers and are subject to interest payments, serving as a primary indicator of the protocol's revenue-generating capacity. The metric accounts for outstanding debt across both Silo V2 and Silo V3 deployments, reflecting the net balance of borrow and repayment activities.

## 2. Data sources

- **Blockchain events**: State-read snapshots of borrow balances (including accrued interest) from `Silo V2` and `Silo V3` contracts, covering Ethereum, Arbitrum, Avalanche, Sonic, and XDC
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Outstanding loan tracking

- **Purpose**: Retrieve outstanding debt for Silo V2 and Silo V3 markets using state-read snapshots
- **Logic**: Borrow balances, including accrued interest, are extracted from state-read snapshots of `Silo V2` and `Silo V3` contracts. The total outstanding debt for each market is determined at the end of each daily interval.
- **Key fields**: `active_loans`, `account_address`, `token_address`

### Component B: Market filtering and exclusions

- **Purpose**: Ensure data integrity by removing inflated, compromised, or matured market data
- **Logic**: Specific markets and vaults are filtered out of the calculation based on predefined exclusion lists. The FARM silo is removed due to inflated values, and various markets on Ethereum, Arbitrum, Avalanche, and Sonic identified as impacted by the Stream and Stable Labs collapse are excluded, alongside dead or matured markets on Sonic, Arbitrum, Ethereum, and Avalanche.
- **Key fields**: `market_address`, `vault_address`, `chain`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize loan values to USD and aggregate across the protocol
- **Logic**: Raw asset amounts are normalized by decimal precision based on asset metadata. These normalized values are multiplied by end-of-day asset prices to calculate the USD value. The data is then aggregated by day and chain, with a zero-filling strategy applied to ensure continuity in the time series.
- **Key fields**: `timestamp`, `price_usd`, `decimals`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of loans currently outstanding to borrowers.

Silo FinanceSILO

Active loans

Active loans

Competitive landscape

Chain breakdown