Silo Launches V2 Protocol on Sonic

Silo, a non-custodial decentralized finance marketplace, announced the launch of its V2 protocol on Sonic, a high-performance Layer 1 network.

This upgrade allows users on Sonic to access lending markets with separated risk pools, meaning that trouble in one market won’t affect others. After passing multiple security audits, Silo V2 is now live and has already attracted $400 million locked into the platform.

Silo V1 made a significant impact in the DeFi sector, facilitating loans worth hundreds of millions of dollars across more than 50 markets without major issues.

Create Your Own Lending Market

Anyone can create a lending market for any ERC-20 token and customize settings, such as loan-to-value ratios, liquidation thresholds, and interest rates. This flexibility allows lenders and borrowers to tailor strategies to specific assets and market conditions.

Open Accessibility

One of the key upgrades with V2 is that users no longer need permission to create a market; it is open to everyone.

Silo has also introduced “hooks,” enabling users to add features such as connecting different markets, redirecting idle funds for extra yield, or setting up fixed-term loans.

The use of the ERC-4626 standard means Silo V2 will communicate seamlessly with other DeFi apps, simplifying fund transfers and interactions across platforms.

Enhanced Risk Management

To enhance security, Silo V2 implements a dual-oracle system that separates loan-to-value (LTV) and liquidation threshold calculations—thus providing more accurate risk assessments and reducing the likelihood of bad debt.

Market creators can now earn fees through an ERC-721 token, establishing a new revenue stream for market builders and promoting a more competitive lending environment.

Future Plans

Following its launch on Sonic, Silo aims to expand V2 onto Ethereum, Arbitrum, and Base, reinforcing its position in the DeFi landscape. With a focus on flexibility, security, and scalability, Silo V2 is set to make decentralized lending more accessible and user-friendly than ever.