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

twitter

discord

etherscan

website

Lending

Silo Finance

# Silo Finance Expenses Methodology

## 1. Overview

Expenses measures the total value of token incentives and operating costs incurred by Silo Finance to maintain and grow its lending markets. This metric includes the distribution of the protocol's native asset (SILO) as user incentives, as well as the distribution of external assets such as ARB, OP, and CRV, which are classified as operating expenses. These distributions are captured across multiple protocol versions and deployment chains to provide a comprehensive view of the protocol's cost of operation.

## 2. Data sources

- **Blockchain events**: `RewardsClaimed` events from `SiloIncentivesControllerV1`, `SiloIncentivesControllerV2`, and `SiloIncentivesController` contracts; `TokensClaimed` events from Hedgey Finance `ClaimCampaigns` contracts; and ERC-20 token transfers on Sonic, covering Ethereum, Arbitrum, Base, Optimism, and Sonic
- **External data**: End-of-day price feeds for distributed assets

## 3. Step-by-step calculation

### Component A: Token incentive tracking

- **Purpose**: Capture the distribution of the protocol's native asset (SILO) to users
- **Logic**: `RewardsClaimed` events are parsed from `SiloIncentivesControllerV1`, `SiloIncentivesControllerV2`, and `SiloIncentivesController` contracts. These events are joined with ERC-20 token transfers within the same transaction and log index to identify the specific asset distributed. Distributions are filtered to include only the SILO asset. For distributions occurring via Hedgey Finance, `TokensClaimed` events are parsed from `ClaimCampaigns` contracts, excluding specific campaign IDs associated with non-incentive distributions.
- **Key fields**: `in_amount` (Silo contracts), `in_amountClaimed` (Hedgey Finance), `token_address`

### Component B: Operating expense tracking

- **Purpose**: Capture the distribution of external assets used for protocol operations and liquidity bootstrapping
- **Logic**: `RewardsClaimed` events from Silo contracts and `TokensClaimed` events from Hedgey Finance contracts are parsed using the same join logic as token incentives. These distributions are filtered to include only non-SILO assets identified in the incentive token configuration, such as ARB, CRV, OP, USDC, WS, and WOS. These are classified as operating expenses rather than native token incentives.
- **Key fields**: `in_amount`, `in_amountClaimed`, `token_address`

### Component C: Sonic V2 distribution extraction

- **Purpose**: Capture incentive and expense distributions on the Sonic network
- **Logic**: ERC-20 token transfers on the Sonic chain are parsed and filtered by specific transaction input prefixes (starting with `0xa5eb3f0d`). These transfers are joined with a predefined list of incentive assets to categorize them as either token incentives (SILO) or operating expenses (WS, WOS, etc.) based on the asset symbol.
- **Key fields**: `value`, `token_address`, `input`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all distributed values to USD and aggregate by day
- **Logic**: All captured amounts are normalized by decimal precision. For SILO assets distributed on Base and Sonic, price feeds are mapped to the SILO asset on Ethereum to ensure consistent valuation. All assets are multiplied by end-of-day price feeds. The final Expenses metric is calculated as the sum of native token incentives and operating expenses, aggregated by timestamp and chain using UTC day boundaries.

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

Total project operating and incentive expenses.

Silo FinanceSILO

Expenses

Expenses

Competitive landscape

Chain breakdown