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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Silo Finance

# Silo Finance Earnings Methodology

## 1. Overview

Earnings measures the net value retained by Silo Finance after all expenses are subtracted from protocol revenue. Protocol-level profitability is reflected by incorporating both operating expenses and token incentives. Revenue is derived from the protocol's share of interest and fees, while expenses are comprised of rewards distributed to users to bootstrap liquidity.

## 2. Data sources

- **Blockchain events**: `RewardsClaimed` events from `SiloIncentivesController` contracts, `TokensClaimed` events from `ClaimCampaigns` contracts (Hedgey Finance), `WithdrawnFees` events from `Silo` contracts, ERC-20 token transfers, and protocol state calls, covering Ethereum, Arbitrum, Base, Optimism, and 2 other chains
- **External data**: End-of-day price feeds

## 3. Step-by-step calculation

### Component A: Protocol revenue calculation

- **Purpose**: Reconstruct daily protocol revenue from fee balances
- **Logic**: Protocol revenue is reconstructed from daily protocol fee balances captured via state calls. For V2 markets, `WithdrawnFees` events from `Silo` contracts are added back to the current state to account for fee withdrawals and ensure a continuous balance. Daily revenue is calculated as the non-negative difference between consecutive daily balances. Markets and vaults identified as stream-impacted or associated with collapsed entities are excluded from the calculation.
- **Key fields**: `daoFees` and `deployerFees` from `WithdrawnFees` events

### Component B: Operating expenses extraction

- **Purpose**: Capture reward distributions in assets other than SILO
- **Logic**: Operating expenses are captured from reward distributions in assets other than SILO. Data is parsed from `RewardsClaimed` events emitted by `SiloIncentivesController` contracts and `TokensClaimed` events from Hedgey Finance `ClaimCampaigns` contracts. On Sonic, expenses are identified by filtering ERC-20 token transfers associated with specific transaction input signatures.

### Component C: Token incentives extraction

- **Purpose**: Capture native protocol reward distributions
- **Logic**: Token incentives are extracted using the same event sources and filtering logic as operating expenses, but are restricted to distributions of the SILO asset. Native protocol emissions are separated from external asset expenses through this filtering.

### Component D: Aggregation and USD conversion

- **Purpose**: Combine components and normalize to USD
- **Logic**: Earnings are calculated by subtracting the sum of operating expenses and token incentives from protocol revenue. All amounts are normalized by decimal precision and multiplied by end-of-day asset prices. Daily granularity with UTC day boundaries.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Silo FinanceSILO

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