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 Operating expenses Methodology

## 1. Overview

Operating expenses is defined as the total value of non-native assets distributed by Silo Finance as protocol rewards. The cost of liquidity mining programs and operational incentives paid in external assets such as ARB, OP, CRV, and USDC is captured by this metric. The protocol's native SILO asset is excluded from this calculation to distinguish between external capital outlays and native token emissions. The value provided to users for supplying liquidity or participating in specific market activities is represented by these expenses.

## 2. Data sources

- **Blockchain events**: `RewardsClaimed` events from `SiloIncentivesControllerV1`, `SiloIncentivesControllerV2`, and `SiloIncentivesController` contracts, `TokensClaimed` events from `ClaimCampaigns` contracts, and ERC-20 `Transfer` events, covering Ethereum, Arbitrum, Base, Optimism, and Sonic.
- **External data**: End-of-day price feeds for incentive assets.

## 3. Step-by-step calculation

### Component A: Native incentive controller tracking

- **Purpose**: Capture rewards claimed through Silo Finance's native incentive distribution contracts.
- **Logic**: `RewardsClaimed` events are parsed from `SiloIncentivesControllerV1`, `SiloIncentivesControllerV2`, and `SiloIncentivesController` contracts. These events are joined with ERC-20 `Transfer` events to identify the specific asset and amount distributed. Only assets defined in the incentive token configuration are included, and the protocol's native SILO asset is explicitly excluded.
- **Key fields**: `transaction_hash`, `address`, `token_address`, `amount`.

### Component B: Third-party distribution tracking (Hedgey Finance)
- **Purpose**: Capture rewards distributed via Hedgey Finance claim campaigns.
- **Logic**: `TokensClaimed` events are parsed from `ClaimCampaigns` contracts on Arbitrum. These events are joined with ERC-20 `Transfer` events to determine the asset and quantity. Specific campaign IDs are excluded to ensure only relevant protocol expenses are captured, and native SILO assets are excluded.
- **Key fields**: `transaction_hash`, `address`, `token_address`, `amountClaimed`.

### Component C: Sonic V2 distribution tracking

- **Purpose**: Capture rewards distributed on the Sonic network.
- **Logic**: ERC-20 `Transfer` events on the Sonic chain are identified by filtering for transactions with specific function signatures in the transaction input. These transfers are validated against the incentive asset list for Sonic, and native SILO assets are excluded.
- **Key fields**: `transaction_hash`, `from_address`, `token_address`, `value`.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all identified expenses to USD for cross-chain comparison.
- **Logic**: All identified expense amounts are normalized by decimal precision. Values are converted to USD using end-of-day price feeds. Data is aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `timestamp`, `chain_id`, `operating_expenses`.

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

Total operating expenses borne by the protocol, excluding token incentives.

Silo FinanceSILO

Operating expenses

Operating expenses

Competitive landscape

Chain breakdown