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).

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Lending

Silo Finance

# Silo Finance Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average amount of fees paid by an individual active user of Silo Finance over a 24-hour period. This metric reflects the daily cost of utilizing the protocol's lending and borrowing services for a typical user. It is calculated by dividing the total daily fees generated by the number of unique active users (daily).

## 2. Data sources

- **Blockchain events**: `Borrow`, `Deposit`, `Withdraw`, and `Repay` events from `SiloV1`, `SiloV2`, `SiloV3`, `Silo`, and `Silo1` contracts; `WithdrawnFees` events from `Silo1` and `SiloV3` contracts; and `NewSilo` events from `SiloFactoryV3` contracts, covering Ethereum, Arbitrum, Base, Optimism, and 3 other chains
- **External data**: End-of-day price feeds and asset metadata
- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Active users (daily) tracking

- **Purpose**: Identify the unique daily participants interacting with Silo Finance lending markets
- **Logic**: `Borrow`, `Deposit`, `Withdraw`, and `Repay` events are parsed across all protocol versions. The transaction signer address is identified as the active user. Interactions associated with specific excluded markets and vaults, such as those impacted by the Stream and Stable Labs collapse, are filtered out to ensure data integrity.
- **Key fields**: `transaction_hash`, `from_address`, `block_timestamp`

### Component B: Fee collection and reconstruction

- **Purpose**: Calculate the total daily fees generated across all protocol versions
- **Logic**: For V1 and V2, protocol fees are retrieved from contract state calls. Total fees are reconstructed by dividing the protocol's share of fees by the protocol fee percentage. For V2, realized protocol revenue from `WithdrawnFees` events is added back to the state-based balances to capture the maximum fee state prior to withdrawal. For V3, fees are calculated as the sum of `daoFees` and `deployerFees` extracted from `WithdrawnFees` events.
- **Key fields**: `daoFees`, `deployerFees`, `withdrawn_amount`, `result` (from state calls)

### Component C: USD conversion and AFPU calculation

- **Purpose**: Normalize fee values to USD and calculate the average fee paid per user
- **Logic**: Cumulative fee values are converted into daily non-cumulative amounts. These amounts are normalized by decimal precision and multiplied by end-of-day asset prices. Average fees per user (AFPU) is then calculated by dividing the total daily fees by the count of unique active users (daily) for each 24-hour window. Daily granularity is maintained using UTC day boundaries.

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

Silo FinanceSILO

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape