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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Lending

Silo Finance

# Silo Finance Revenue Methodology

## 1. Overview

Revenue is measured as the portion of interest and fees retained by Silo Finance across its lending markets. The protocol's share of the total fees paid by borrowers is captured as protocol revenue, rather than being distributed to supply-side participants. Revenue is tracked across multiple protocol versions, including V1, V2, and V3, and is utilized to assess the earnings generated by the protocol's lending infrastructure.

## 2. Data sources

- **Blockchain events**: `WithdrawnFees` events from `Silo1` contracts, `NewSilo` events from `SiloFactoryV3` contracts, `Borrow` and `Repay` events from `SiloV3` contracts, and protocol state snapshots, covering Ethereum, Arbitrum, Avalanche, Sonic, and XDC
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Protocol fee state tracking

- **Purpose**: Captures the raw cumulative fee balances accrued by the protocol
- **Logic**: Protocol fee balances are retrieved from state snapshots for both V1 and V2 lending markets. These snapshots are used to capture the cumulative fees accrued by the protocol within each individual silo and asset pair.
- **Key fields**: `result` (representing the state balance), `silo_address`, `token_address`

### Component B: Withdrawal adjustment for V2

- **Purpose**: Reconstructs the cumulative revenue state for V2 markets by accounting for fee withdrawals
- **Logic**: For V2 markets, `WithdrawnFees` events from `Silo1` contracts are parsed to identify protocol revenue—consisting of `daoFees` and `deployerFees`—that has been removed from the silo. These withdrawn amounts are added back to the current state balance to reconstruct the pre-withdrawal cumulative state.
- **Key fields**: `daoFees`, `deployerFees`, `silo_address`

### Component C: Daily revenue derivation

- **Purpose**: Calculates the non-cumulative daily revenue generated by the protocol
- **Logic**: Daily revenue is determined by calculating the difference between the adjusted cumulative fee balance of the current day and that of the preceding day. A floor of zero is applied to the result to prevent negative revenue values that may arise from state adjustments or withdrawals.
- **Key fields**: `timestamp`, `revenue`

### Component D: Market and vault exclusions

- **Purpose**: Ensures data integrity by removing excluded or impacted markets
- **Logic**: Data is filtered to exclude specific markets and vaults identified as stream-impacted or associated with the collapse of Stream and Stable Labs. Additionally, specific silo and asset addresses, such as those related to certain farm silos or PEPE assets, are removed, and specific time-based filters are applied to certain markets on Sonic to ensure data accuracy.
- **Key fields**: `market_address`, `vault_address`, `silo_address`

### Component E: Silo V3 revenue calculation

- **Purpose**: Calculates protocol revenue generated by Silo V3 lending markets
- **Logic**: Daily interest is calculated by taking the difference in cumulative debt with interest between consecutive days and subtracting net borrow flows (derived from `Borrow` and `Repay` events from `SiloV3` contracts). Protocol revenue is then calculated by multiplying this daily interest by the sum of the DAO fee and deployer fee percentages retrieved from protocol configuration state reads.
- **Key fields**: `total_debt`, `net_borrow_amount`, `fees`, `result`

### Component F: USD conversion and aggregation

- **Purpose**: Normalizes revenue values to USD for cross-chain and cross-asset comparison
- **Logic**: Asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. The final values are aggregated to provide daily granularity with UTC day boundaries.
- **Key fields**: `price_usd`, `decimals`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Silo FinanceSILO

Revenue

Revenue

Competitive landscape

Chain breakdown