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 Supply-side fees Methodology

## 1. Overview

Supply-side fees is measured as the share of interest payments generated by borrowers that is distributed to service providers. In the context of Silo Finance, the interest earned by liquidity providers (lenders) from assets supplied to the protocol's isolated lending markets is primarily represented. The gross interest accrued by borrowers minus the protocol's retained revenue share is reflected by the metric.

## 2. Data sources

- **Blockchain events**: `WithdrawnFees` events from `Silo1` contracts, `Borrow` and `Repay` events from `SiloV3` contracts, and `NewSilo` events from `SiloFactoryV3` contracts, covering Ethereum, Arbitrum, Avalanche, Sonic, and XDC
- **External data**: End-of-day price feeds for supplied and borrowed assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Total interest reconstruction (V1 and V2)
- **Purpose**: Reconstruct the total interest paid by borrowers (gross fees) for Silo Finance V1 and V2.
- **Logic**: Accumulated protocol fee balances and protocol fee share percentages are retrieved via state calls. Total fees are calculated by dividing the protocol fee balance by the protocol's share percentage. For V2, realized fees previously captured from `WithdrawnFees` events are added back to the current state balance to reconstruct the total accrued interest before non-cumulative daily changes are calculated. Specific markets and vaults, including those associated with the Stream and Stable Labs collapse and dead markets with phantom revenue, are excluded from the calculation.
- **Key fields**: `protocol_fees`, `protocol_share_fees`, and `withdrawn_amount`

### Component B: Protocol revenue tracking (V1 and V2)
- **Purpose**: Determine the portion of interest retained by the protocol DAO and deployers.
- **Logic**: Protocol revenue is identified as the accumulated protocol fee balance retrieved from state calls. For V2, this balance is adjusted through the addition of amounts from `WithdrawnFees` events so that consistency with the total fee reconstruction is ensured. Daily revenue is calculated as the delta between consecutive daily balances, with negative values (resulting from withdrawals) treated as zero.

### Component C: Interest tracking (V3)
- **Purpose**: Calculate the total interest paid by borrowers (gross fees) for Silo Finance V3.
- **Logic**: Daily total debt is retrieved via state calls. Daily interest is calculated by subtracting the previous day's total debt and the daily net borrow flows (derived from `Borrow` and `Repay` events) from the current day's total debt. Specific markets and vaults, including those associated with the Stream and Stable Labs collapse, are excluded from the calculation.

### Component D: Protocol revenue tracking (V3)
- **Purpose**: Determine the portion of interest retained by the protocol DAO and deployers for Silo Finance V3.
- **Logic**: Protocol fee percentages (DAO and deployer fees) are retrieved via state calls. Protocol revenue is calculated by multiplying the daily interest (Component C) by the sum of the DAO and deployer fee percentages.

### Component E: Supply-side fee derivation

- **Purpose**: Calculate the final share of fees allocated to the supply-side.
- **Logic**: Supply-side fees are derived by subtracting the protocol revenue (Component B for V1/V2, Component D for V3) from the total fees (Component A for V1/V2, Component C for V3). Through this calculation, only the interest distributed to lenders and other service providers is included in the metric.

### Component F: USD conversion and aggregation

- **Purpose**: Normalize all fee values to USD for cross-chain and cross-asset comparison.
- **Logic**: All fee amounts are normalized by decimal precision based on asset metadata. The resulting values are multiplied by end-of-day price feeds for each respective asset. Data is aggregated by day using UTC boundaries.

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

Portion of fees distributed to service providers or supply-side participants.

Silo FinanceSILO

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown