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 Fees Methodology

## 1. Overview

Fees measures the total interest paid by borrowers to the Silo Finance lending protocol. These fees represent the gross economic value generated by the application, which is distributed between liquidity providers and the protocol treasury. The metric includes activity across V1, V2, and V3 of the protocol. Supply-side participants and the protocol treasury are compensated by these fees based on the configured interest rate models and fee sharing parameters of each market.

## 2. Data sources

- **Blockchain events**: `WithdrawnFees` events from `Silo1` and `SiloV3` contracts, `NewSilo` events from `SiloFactoryV3` contracts, and protocol fee state snapshots, covering Ethereum, Arbitrum, Avalanche, Sonic, and XDC
- **External data**: End-of-day price feeds for underlying assets

## 3. Step-by-step calculation

### Component A: V1 and V2 fee reconstruction

- **Purpose**: Reconstruct total interest fees from protocol fee states for Silo Finance V1 and V2
- **Logic**: Protocol fee balances are retrieved via state calls. For V2, realized fees from `WithdrawnFees` events are added back to the current state to account for withdrawals. These protocol-side values are then divided by the configured protocol fee percentage (the sum of DAO and deployer fees) to derive the total interest paid by borrowers. The resulting values are made non-cumulative by calculating the daily delta between consecutive state snapshots. Negative deltas, which may occur following fee withdrawals in V2, are treated as zero to maintain consistency. Specific markets and vaults, including those associated with the Stream and Stable Labs collapse, are excluded from the calculation. Additionally, specific assets such as PEPE and certain farm-related silos are filtered out.
- **Key fields**: `timestamp` (timing), `silo_address` (market identification), `token_address` (asset identification), `result` (fee state and configuration values)

### Component B: V3 fee extraction

- **Purpose**: Capture realized protocol fees for Silo Finance V3
- **Logic**: Silo addresses are mapped to their underlying assets using `NewSilo` events from `SiloFactoryV3` contracts. `WithdrawnFees` events are parsed from `SiloV3` contracts, and the `daoFees` and `deployerFees` components are summed to determine the total realized protocol revenue. These values are aggregated by day and represent discrete fee realization events.
- **Key fields**: `block_timestamp` (timing), `daoFees` (protocol share), `deployerFees` (deployer share), `silo_address` (market identification)

### Component C: USD conversion and aggregation

- **Purpose**: Normalize values and convert to USD for cross-asset comparison
- **Logic**: Fee amounts are normalized by decimal precision based on asset metadata. Normalized values are multiplied by end-of-day price feeds to calculate the USD value. Daily totals are aggregated across all protocol versions and chains.
- **Key fields**: `timestamp` (timing), `fees` (normalized quantities), `price_usd` (valuation)

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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