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 Token incentives Methodology

## 1. Overview

Token incentives measures the value of native SILO assets distributed to users of Silo Finance. These distributions are primarily used to incentivize liquidity provision and borrowing activity across the protocol's lending markets. The metric represents the economic cost of protocol growth and user acquisition, functioning similarly to stock-based compensation in traditional financial reporting.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Standard reward claim extraction

- **Purpose**: Capture SILO incentives distributed through the protocol's native incentive controllers
- **Logic**: `RewardsClaimed` events are parsed from `SiloIncentivesController`, `SiloIncentivesControllerV1`, and `SiloIncentivesControllerV2` contracts. These events are joined with ERC-20 `Transfer` events within the same transaction and log sequence to identify the specific asset and quantity distributed. The data is filtered to include only the SILO asset.
- **Key fields**: `in_amount` (event amount), `token_address`, `transaction_hash`, `log_index`

### Component B: External campaign claim extraction

- **Purpose**: Capture SILO incentives distributed via Hedgey Finance claim campaigns
- **Logic**: `TokensClaimed` events are parsed from Hedgey Finance `ClaimCampaigns` contracts on Arbitrum. These events are joined with ERC-20 `Transfer` events to identify the distributed assets. A filter is applied to exclude specific campaign IDs that do not represent Silo Finance incentives, and the results are restricted to the SILO asset.
- **Key fields**: `in_amountClaimed` (event amount), `token_address`, `in_id` (campaign identifier)

### Component C: V2 incentive extraction

- **Purpose**: Capture incentives distributed on the Sonic network
- **Logic**: ERC-20 token transfers on the Sonic network are filtered by transaction input data. Specifically, transfers associated with transactions where the input begins with the `0xa5eb3f0d` method identifier are identified as incentive distributions. These transfers are filtered for the SILO asset on Sonic.
- **Key fields**: `value` (transfer amount), `input` (transaction data), `token_address`

### Component D: USD conversion and price fallback application

- **Purpose**: Normalize incentive values to USD and handle cross-chain price mapping
- **Logic**: All identified SILO amounts are normalized by decimal precision. For SILO distributions on Base and Sonic, price data is mapped from the SILO asset on Ethereum to ensure consistent valuation. Normalized amounts are multiplied by end-of-day price feeds. Values are aggregated by day using UTC boundaries.
- **Key fields**: `token_incentives` (raw amount), `price_usd`, `timestamp`

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

Value of native tokens distributed as incentives.

Silo FinanceSILO

Token incentives

Token incentives

Competitive landscape

Chain breakdown