THIS IS INTERN’S VIEW ON THE SITUATION NOT SILO’S - I AM LITERALLY RETARDED SO DO WITH THIS WHAT YOU WILL.
There’s been a heavy amount of FUD circulating about Falcon’s USDf on CT causing sizeable outflows from the Varlamore Falcon USDC Vault.
THE FUD:
- Reserve allocation is not transparent
- USDf’s ‘innovative mint’ function can precipitate bad debt
THE REALITY:
Any protocol with off-chain components requires SOME element of trust since these balances cannot be confirmed in real time. To address this, Falcon has regular Reserve Reports by HT Digital (same auditor as Ethena) outlining their collateral status.
You can view their attestations here: https://app.falcon.finance/transparency
Falcon’s innovative mint function allows users to mint USDf against volatile assets. The concern here is undercollateralization → bad debt.
This is technically possible.
It’s also why funding rate arbitrage on ETH and BTC works in the first place - you long spot and short perps to collect funding in the interim. Additionally, similarly to Silo, this mint methodology is overcollateralized meaning 1 USDf is only mintable with >$1 of collateral.
THE ACTIONABLES:
If the above concerns you, it is indeed prudent to remove your liquidity to protect yourself.
If you’re okay with this counterparty exposure, the Falcon USDC vault is now printing egregious APYs thanks to highly concentrated rewards.
As is the ethos of Silo, intern leaves it up to you to make these decisions.
Toodaloo suckers!
There’s been a heavy amount of FUD circulating about Falcon’s USDf on CT causing sizeable outflows from the Varlamore Falcon USDC Vault.
THE FUD:
- Reserve allocation is not transparent
- USDf’s ‘innovative mint’ function can precipitate bad debt
THE REALITY:
Any protocol with off-chain components requires SOME element of trust since these balances cannot be confirmed in real time. To address this, Falcon has regular Reserve Reports by HT Digital (same auditor as Ethena) outlining their collateral status.
You can view their attestations here: https://app.falcon.finance/transparency
Falcon’s innovative mint function allows users to mint USDf against volatile assets. The concern here is undercollateralization → bad debt.
This is technically possible.
It’s also why funding rate arbitrage on ETH and BTC works in the first place - you long spot and short perps to collect funding in the interim. Additionally, similarly to Silo, this mint methodology is overcollateralized meaning 1 USDf is only mintable with >$1 of collateral.
THE ACTIONABLES:
If the above concerns you, it is indeed prudent to remove your liquidity to protect yourself.
If you’re okay with this counterparty exposure, the Falcon USDC vault is now printing egregious APYs thanks to highly concentrated rewards.
As is the ethos of Silo, intern leaves it up to you to make these decisions.
Toodaloo suckers!
😘6
IMO IMHO areas where Falcon can improve to increase transparency:
1. Granular breakdown of reserve assets (right now just shows 'other')
2. Delta-neutral attestation (Ethena has this)
3. Smoochie for me haha
1. Granular breakdown of reserve assets (right now just shows 'other')
2. Delta-neutral attestation (Ethena has this)
3. Smoochie for me haha
😘8
A quick guide on making heaps of money in DeFi:
1. Go to Silo's Earn page and type in the token you want to make lots of money on (e.g. USDC)
2. Choose the network you want to make lots of money on
3. Sort by 'Supply APR'
4. Choose your challenger
Literally that easy retards
For my full set-up w/ USDC yields across all chains, use my handy link here: https://app.silo.finance/earn?search=USDC&sort=supplyApr
Make sure to check counterparty exposure for the corresponding markets/vaults!
NFA (but also FA)
1. Go to Silo's Earn page and type in the token you want to make lots of money on (e.g. USDC)
2. Choose the network you want to make lots of money on
3. Sort by 'Supply APR'
4. Choose your challenger
Literally that easy retards
For my full set-up w/ USDC yields across all chains, use my handy link here: https://app.silo.finance/earn?search=USDC&sort=supplyApr
Make sure to check counterparty exposure for the corresponding markets/vaults!
NFA (but also FA)
😘10
Fun Fact - you can get:
1. 2.5x YieldFi points by depositing USDC in the yUSD-USDC markets
2. 1x YieldFi points by depositing yUSD in the yUSD-USDC markets
Perfect for loopers, perfect for borrowers.
Find our Silo x YieldFi integrations here: app.silo.finance/markets?search=yusd
These mfs could legit get yield from a STONE - you can see EXACTLY where they deploy to here: https://yield.fi/transparency
1. 2.5x YieldFi points by depositing USDC in the yUSD-USDC markets
2. 1x YieldFi points by depositing yUSD in the yUSD-USDC markets
Perfect for loopers, perfect for borrowers.
Find our Silo x YieldFi integrations here: app.silo.finance/markets?search=yusd
These mfs could legit get yield from a STONE - you can see EXACTLY where they deploy to here: https://yield.fi/transparency
😘11
damn only 1 kiss? all good then guys ill just k1ll myself lol bye
😘11🤨2👀1
Varlamore USDC Vault on Silo Arbitrum now paying 31.3% APY on stablecoins.
Of this:
📌 21.8% in pure interest
📌 9.5% in xSILO
Counterparty exposure primarily yield-bearing stablecoins w/ sUSDX (98%) and yUSD (2%)
Decent place for a punt on the Great Blue Chain.
APE HERE PUSSIES: https://app.silo.finance/vaults/arbitrum/0x2BA39e5388aC6C702Cb29AEA78d52aa66832f1ee?action=deposit
Of this:
📌 21.8% in pure interest
📌 9.5% in xSILO
Counterparty exposure primarily yield-bearing stablecoins w/ sUSDX (98%) and yUSD (2%)
Decent place for a punt on the Great Blue Chain.
APE HERE PUSSIES: https://app.silo.finance/vaults/arbitrum/0x2BA39e5388aC6C702Cb29AEA78d52aa66832f1ee?action=deposit
😘6
P.S. Lil' alpha for my telegram fangays
The following ETH-correlated markets are coming to Silo Ethereum:
- tETH/ETH
- PT-tETH/ETH
This will be supported by the Apostro ETH Core Vault in a perfectly lovely ETH up-only environment...
(surely it's different this time right HAHAHAHHAHAHAHHAHA KILL ME NOW AAAAAAAAAAAAAAAAAAAA)
The following ETH-correlated markets are coming to Silo Ethereum:
- tETH/ETH
- PT-tETH/ETH
This will be supported by the Apostro ETH Core Vault in a perfectly lovely ETH up-only environment...
(surely it's different this time right HAHAHAHHAHAHAHHAHA KILL ME NOW AAAAAAAAAAAAAAAAAAAA)
😘7
damn wtf i blinked and Silo Avalanche is now > $60m TVL
have barely even shilled it as well idk what animals are aping this... i RESPECT that.
If you want to join greatness plesae peruse here: https://app.silo.finance/earn?chains=avalanche
have barely even shilled it as well idk what animals are aping this... i RESPECT that.
If you want to join greatness plesae peruse here: https://app.silo.finance/earn?chains=avalanche
😘2
Oddly enough, the big standout on Silo Avalanche is actually BTC yield strategies.
Two ways to play it:
📌 "I am a brainlet": Deposit BTC.b in the MEV BTC Vault -> earn 7.8% APY (1.6% BTC yield)
📌 "I am a genius": Loop savBTC/BTC.b -> earn up to 21.3% APY
Yield on both ends driven by Avant's avBTC that packs a whopping 5.2% APY on BTC!
Pair that with 2.8% BTC.b borrow APY (2.4% spread) and 7.7x leverage and you have an orange coin printing machine.
Great technology
Two ways to play it:
📌 "I am a brainlet": Deposit BTC.b in the MEV BTC Vault -> earn 7.8% APY (1.6% BTC yield)
📌 "I am a genius": Loop savBTC/BTC.b -> earn up to 21.3% APY
Yield on both ends driven by Avant's avBTC that packs a whopping 5.2% APY on BTC!
Pair that with 2.8% BTC.b borrow APY (2.4% spread) and 7.7x leverage and you have an orange coin printing machine.
Great technology
😘6🤗1
This is akshually a great question with a LOT of nuance re: borrow costs for isolated vs. shared pool designs.
i) Isolated Liquidity =/= Higher Borrow Costs
Isolated liquidity in itself DOES NOT cause higher borrow costs. However, it DOES make it easier for critical threshold to be passed since less capital is required to move utilization.
Ideally, this is addressed by managers who are incentivized to move liquidity from Low -> High utilization markets.
ii) Isolated Liquidity = Higher Utiliztion Rates
By optimizing for rates, the average utilization of isolated lending markets is ALWAYS going to be higher than shared pool markets. This is why deposit rates on Silo are typically higher than Aave - more liquidity is borrowed out.
This is great for lenders as more of their capital is at work so they end up netting more fees.
iii) Isolated Liquidity = Collateral-Specific IRMs
I consider this one of the most important aspect of the isolated design - rather than one global $USDC interest rate model, every counterparty asset can have its own interest rate model.
Borrowing against PT-sUSDf? Sure, pay 8.8% APY.
Borrowing against PT-sUSDe? Sure, pay 7.4% APY.
In doing so:
- Lenders are properly compensated based on counterparty risk
- Borrowers pay a rate that can be tailored to their collateral yield (making loops generally profitable)
It's all in the isolation, baby!
i) Isolated Liquidity =/= Higher Borrow Costs
Isolated liquidity in itself DOES NOT cause higher borrow costs. However, it DOES make it easier for critical threshold to be passed since less capital is required to move utilization.
Ideally, this is addressed by managers who are incentivized to move liquidity from Low -> High utilization markets.
ii) Isolated Liquidity = Higher Utiliztion Rates
By optimizing for rates, the average utilization of isolated lending markets is ALWAYS going to be higher than shared pool markets. This is why deposit rates on Silo are typically higher than Aave - more liquidity is borrowed out.
This is great for lenders as more of their capital is at work so they end up netting more fees.
iii) Isolated Liquidity = Collateral-Specific IRMs
I consider this one of the most important aspect of the isolated design - rather than one global $USDC interest rate model, every counterparty asset can have its own interest rate model.
Borrowing against PT-sUSDf? Sure, pay 8.8% APY.
Borrowing against PT-sUSDe? Sure, pay 7.4% APY.
In doing so:
- Lenders are properly compensated based on counterparty risk
- Borrowers pay a rate that can be tailored to their collateral yield (making loops generally profitable)
It's all in the isolation, baby!
😘9