Silo Finance STIP.B Bi-Weekly Updates

Archive Biweekly Updates (STIP)
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[Silo Finance] Bi-Weekly Update [07/01/2024]

Recap of the Previous Two Weeks

Silo begun its incentivization at the beggining of last week upon claiming its first batch of ARB incentives. We will be following a similar philosophy to that of our previous grant cycle but with a bigger focus on derivatives such as Pendle PT tokens. In addition to starting rewards we’ve recently released the new September expiry pendle markets for EtherFi, Renzo, Kelp, and Ethena all which are seeing active use now. We look forward to enable more markets - also a big shoutout to Contango, Pendle and FactorDAO who have been streaming STIP-b rewards to our users via their leverage tools.

Below are the initial weights given to each silo aswell as the individual allocation to each asset within a market. We’ve also got a more comprehensive google doc for those that would like a closer look ($ARB STIP Bridge grant distribution (Reports) - Google Sheets)

Silo Rewardeds action Silo’s allocation weight sToken distribution allocation
PT-ezETH (Sep. 26) Deposit ETH 3.50% 2,784.11
PT-eETH (Sep. 26) Deposit ETH 3.50% 2,784.11
PT-rsETH (Sep. 26) Deposit ETH 2.50% 1,988.65
PT-USDe (Aug 29) Deposit USDC.e 8.00% 6,363.68
weETH Deposit ETH 7.00% 5,568.22
ezETH Deposit ETH 7.00% 5,568.22
tBTC Deposit ETH 3.00% 477.28
tBTC Deposit USDC.e 3.00% 1,909.10
RDNT Deposit USDC.e 2.00% 954.55
RDNT Deposit ETH 2.00% 636.37
ARB Deposit USDC.e 15.00% 8,352.33
ARB Deposit ETH 15.00% 3,579.57
GMX Deposit USDC.e 0.50% 397.73
GNS Deposit USDC.e 0.50% 397.73
GRAIL Deposit ETH 4.00% 3,181.84
MAGIC Deposit USDC.e 0.50% 397.73
PENDLE Deposit USDC.e 7.00% 3,340.93
PENDLE Deposit ETH 7.00% 2,227.29
PREMIA Deposit USDC.e 1.00% 795.46
rETH Deposit USDC.e 4.00% 2,545.47
rETH Deposit ETH 4.00% 636.37
SILO Deposit ETH 3.00% 835.23
SILO Deposit USDC.e 3.00% 1,551.15
wBTC Deposit ETH 15.00% 3,579.57
wBTC Deposit USDC.e 15.00% 8,352.33
wstETH Deposit ETH 13.00% 3,102.29
wstETH Deposit USDC.e 13.00% 7,238.69
79,546.00

We look forward to bringing you more updates - thank you so much.

ARB Received Last Disbursement: 83,334
ARB Utilized as Incentives in the Last Two Weeks: 79,546 (Still streaming for another week)
Contracts incentivized over the last 2 weeks: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label Form completed for all addresses: Yes
ARB left over: 3,788
Plan for leftover ARB: ARB will be rolled back in to incentives in the next rebalancing
Summary of incentives: We’ve put a major focus on PT derivatives this time around, focusing the majority of our resources to target LRTs. We are actively researching top derivatives and vaults in the ecosystem to see what would warrant a highly scalable market. That being said small projects dont be discouraged - if we can enable it we will just reach out on our discord.

STATS

Average daily TVL: $107,792,937
Average daily transactions: 940
Average daily volumes: $12,501,183
Number of unique user addresses: 2,421
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 87,122
Contracts that will be incentivized: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label completed for all addresses: Yes
Mechanism for distribution incentives: All incentives are being distributed via a custom set of contracts with an offchain component built by our friends at Angle utilizing their Merkl system. The integration is also open to everyone so if protocols wish to stream rewards to their own markets they can do so completely permisionless although as always we are happy to help.
Summary of incentives plan: We will follow the plan we’ve mentioned above, following through on new markets with great agility and rebalancing between markets to find where capital is most sticky. We will also be gradually reducing rewards slightly to see if we can get to a
Summary of changes to the original plan: No changes as of yet this being the first week of streaming.

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[Silo Finance] Bi-Weekly Update [07/15/2024]

Recap of the Previous Two Weeks

The last two weeks saw a generally neutral change in stats across the protocol. To counter this we will be trying some new things in the coming weeks by listing some stablecoin wrappers and RWAs. We think this is a greatly scalable space and could prove to be massively important to arbitrum DeFi. We are in the process of trying to list more and more RWAs as oracles and liquidity become available but we are starting with wUSDM, USD+, and GYD - with sGYD to be follow. In addition to these we also plan to list our friends over at RAM with the help of DIA adding in another arbitrum native protocol to the list of silo markets.

ARB Received Last Disbursement: 83,334

ARB Utilized as Incentives in the Last Two Weeks: 83,334

Contracts incentivized over the last 2 weeks: $ARB STIP Bridge grant distribution (Reports) - Google Sheets

Contract address label Form completed for all addresses: Yes

ARB left over: 0

Plan for leftover ARB: any leftover ARB will be rolled back in to incentives in the next rebalancing

Summary of incentives: We’ve slightly altered the original allocation and attempted to grow the USDC supply in some PT markets but did not see a massive uptick in borrowing as of yet. In the coming two weeks we plan to list new markets for wUSD+, wUSDM, RAM, uniETH, and GYD now that suitable oracles are available. General metrics staying stable.

STATS

Average daily TVL: $97,055,831

Average daily transactions: 410~ (This is a rough estimate, exact dated numbers can be found here: https://dune.com/queries/3499581/5884982)

Average daily volumes: $3,437,030

Number of unique user addresses: 2,444

Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 87,122

Contracts that will be incentivized: $ARB STIP Bridge grant distribution (Reports) - Google Sheets

Contract address label completed for all addresses: Yes

Mechanism for distribution incentives: All incentives are currently being distributed via a custom set of contracts with an offchain component built by our friends at Angle utilizing their Merkl system. However we will be migrating the bulk of our incentives back to our regular onchain mechanism as it has proven to be easier to maintain for integrators.

Summary of incentives plan: We plan to continue to strengthen our PT silos as Pendle launches more pools. In the shorter term we have found a couple RWA and stablecoin wrappers we’d like to integrate and grow including Mountain Protocol, Overnight, Gyroscope, and others that now have oracles available allowing for markets to be enabled.

Summary of changes to the original plan: Silo will switch its distribution infrastructure instead opting to use the SiloIncentivesController contract over the current Merkl system.

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[Silo Finance] Bi-Weekly Update [07/29/2024]

Recap of the Previous Two Weeks

This week we’ve successfully migrated to the new SiloIncentivesController - allowing users to earn and claim rewards instantly completely on chain. This as well as some V2 work took some priority so we were unable to launch all the markets previously mentioned. However we will be launching those markets aswell as a few others we have requested oracles to from our friends at DIA (CDR #042: Silo Finance | Price Feeds - #35 by Tenzent - CDRs - Custom Delivery Requests - DIA Forum | Cross-Chain Oracles for Web3).

We have the following markets queued up for launch barring there arent any blockers that come up; wUSDM, USD+, sGYD, gUSDC, FCTR, PEAS. These should provide multiple new niches we can expand into as well as grow the long term stickiness of liquidity by creating positive yield loops.

ARB Received Last Disbursement: 83,334
ARB Utilized as Incentives in the Last Two Weeks: 87,122
Contracts incentivized over the last 2 weeks: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label Form completed for all addresses: Yes
ARB left over: 0
Plan for leftover ARB: any leftover ARB will be rolled back in to incentives in the next rebalancing
Summary of incentives: Metrics remain stable - new Incentive mechanism mentioned in previous post is now live ensuring users a better rewards claiming experience.

STATS

Average daily TVL: $86,406,104
Average daily transactions: https://dune.com/queries/3499581/5884982
Average daily volumes: $4,844,715
Number of unique user addresses: 441
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 83,334
Contracts that will be incentivized: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label completed for all addresses: Yes
Mechanism for distribution incentives: We have now begun using our SiloIncentivesController system as mentioned in the previous post. We are now distributing rewards every block, instantly claimable through our UI and completely on chain.
Summary of incentives plan: We will continue to support our most crucial markets as well as adding new markets where possible, we are working to release a very large number of markets in the coming weeks however work towards our V2 has slowed us down a bit.
Summary of changes to the original plan: No Changes

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[Silo Finance] Bi-Weekly Update [08/14/2024]

Recap of the Previous Two Weeks

Per our last report, we’ve now successfully cleared alot of the backlogged markets. This week we’ve launched five markets, a lot of them also gracefully supported with incentives by their respective projects. Huge thanks to all those who are taking part in growing their own lending markets, engagement from projects is crucial to enabling a vibrant long tail market.

The following markets have been added:

  • wUSD+: Overnights yield bearing stablecoin with massive base yields - this particular market has proven to already be one of our most popular providing ludicrous yield to loopers on apps like Contango.
  • woETH: Origin’s LST wrapper already becoming one of our larger leveraged ETH markets.
  • RAM: Ramses Exchange’s native token is now able to be used as collateral for the first time opening up a new use case for the token, thanks to the friends at DIA for helping set up this oracle.
  • uniETH: Bedrock’s ETH LRT - yet another great leverage market, we look forward to supporting uniBTC in the coming weeks!
  • ETH+: Reserve’s LST wrapper which is seeing tremendous growth - huge thanks to the Reserve team for the massive support on the incentives side here.
  • PEAS: Another creative project’s native token joining the family of markets on Silo with the gracious help of our friends at DIA.

wUSD+, woETH, uniETH, and ETH+ also have been added on Contango for automated looping allowing users to take their yield to the next level. We also look forward to FactorDAO implementing these markets as they are actively working to integrate them.

Metrics have slightly decreased but in terms of in/outflows these last two weeks have been positive with most raw TVL/TVB losses being due to price depreciation of ETH.

ARB Received Last Disbursement: 83,334
ARB Utilized as Incentives in the Last Two Weeks: 83,334
Contracts incentivized over the last 2 weeks: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label Form completed for all addresses: Yes
ARB left over: 0
Plan for leftover ARB: any leftover ARB will be rolled back in to incentives in the next rebalancing
Summary of incentives: No changes

STATS

Average daily TVL: $69,858,000
Average daily transactions: https://dune.com/queries/3499581/5884982
Average daily volumes: $8,664,449
Number of daily unique user addresses: 619
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 83,334
Contracts that will be incentivized: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label completed for all addresses: Yes
Mechanism for distribution incentives: All ARB rewards are being distributed via the SiloIncentivesController - all additional non-ARB rewards are handled via our Merkl distributor.
Summary of incentives plan: No Changes
Summary of changes to the original plan: No Changes

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[Silo Finance] Bi-Weekly Update [09/02/2024]

Recap of the Previous Two Weeks

This week we’ve seen a slight growth in deposits/borrows, we’ve also welcomed another asset into silo being dlcBTC! While V1 is retaining a lot of its success, we have also been quietly putting in a ton of work into our V2. We look forward to bringing you more details about it and launching it on Arbitrum. We are working with multiple top security firms to ship an incredibly secure and reliable codebase.

ARB Received Last Disbursement: 83,334
ARB Utilized as Incentives in the Last Two Weeks: 83,334
Contracts incentivized over the last 2 weeks: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label Form completed for all addresses: Yes
ARB left over: 0
Plan for leftover ARB: any leftover ARB will be rolled back in to incentives in the next rebalancing
Summary of incentives: No changes

STATS

Average daily TVL: $72,951,000
Average daily transactions: https://dune.com/queries/3499581/5884982
Average daily volumes: $6,638,870
Number of daily unique user addresses: 587
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 83,334
Contracts that will be incentivized: $ARB STIP Bridge grant distribution (Reports) - Google Sheets
Contract address label completed for all addresses: Yes
Mechanism for distribution incentives: All ARB rewards are being distributed via the SiloIncentivesController - all additional non-ARB rewards are handled via our Merkl distributor.
Summary of incentives plan: No Changes
Summary of changes to the original plan: No Changes

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Silo Arbitrum STIP.B Final Report

Analytics Links

TVL Metrics

The total Value Locked decreased from the campaign starting point, but external factors skewed these numbers significantly. Silo’s TVL metrics are greatly affected by the ETH’s price movements due to Silo having 48.25% of its total supply in ETH and ETH derivatives markets like LSTs and PT-LRT derivatives.

Although TVL fell to a low of 90M, Silo has seen a strong resurgence in TVL back up to 128M, regaining a majority of what was lost despite ETH still being down 29%~ from its late June highs.

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The current supply-side liquidity of assets is well-balanced. This is critical as it means Silo is diversified across a variety of use cases making liquidity retention less volatile. Since the program’s end, we also have seen a slight uptick in TVL, even with the diminished incentive numbers.

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New Markets

Throughout the STIP.b campaign, Silo has launched a total of 12 new isolated markets tapping into emerging markets, including RWAs, Staking/Restaking Tokens, Derivatives, and Yield Generating Stablecoins.

New Markets: wUSDM, gUSDC, wUSD+, ETH+, woETH, uniETH, PT-rsETH, PT-weETH, PT-ezETH, dlcBTC, RAM, PEAS

Some of these markets proved to be great successes, such as the wUSD+ market, now our sixth largest.

Userbase

Overall, we saw a significant increase in unique user count around the launch of incentives on June 26th. Silo went from having interacted with roughly 45,000 users to 66,000 - a very notable 46%~ increase in total unique user count.

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Most of this new traffic came particularly from LRT markets, with ezETH having the most significant impact on new user count compared to most. Silos for WBTC, PENDLE, weETH, and ARB also all played a part in increasing total unique users.

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Raw daily active user count did decrease since the program start date, but is not necessarily a good metric for tracking success in lending markets, as users do not need to continue interacting with the protocol to have open loans. Notably, there was also a significant surge at the beginning of the grant program, likely caused by users migrating from the Pendle PT markets that expired on June 27 to the newly dated 26th September markets. When we observe the daily user counts before this date, we see that the daily active user count has only slightly decreased from around 300~ DAUs to 200~ DAUs.

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What’s Ahead

We have begun streaming SILO incentives to replace the prior ARB incentives program, the incentives will continue to run until further notice, and we look forward to continuing to help drive adoption in the Arbitrum ecosystem with our upcoming release. We’ve recently begun sharing more information on the upcoming SiloV2 system and will continue dropping information as we grow ever closer to release.

Silo v2 will allow the permissionless deployment of any market and introduces unlimited possibilities via programmable Hooks. Hooks are smart contracts that extend the functionality of the lending markets. For example, a lending market could utilize a hook contract to deploy idle liquidity externally to optimize yield for depositors.

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In addition to extensibility, we have simplified Silo v2’s architecture, making it securer, cheaper to deploy and use, and more straightforward to integrate with. The architecture is fully modular, allowing the deployment of fully customizable lending markets with control over oracles, collateral factors, interest rate models, liquidation flows — and more custom logic.

Through hooks and configurability, money markets can be plugged into the entire DeFi ecosystem, offering new yield opportunities, providing more security and risk management, and leveraging deployed capital in new ways — with a much-improved user experience.

To learn more, check out the following links: