Metrics (January 2023)
- Total Deposits: 23.5M
- Total Borrows: 4.65M
- DAO’s January Revenue: $35,000
- Claimed January Revenue: $25,000
Active farms
- $SILO/ETH Balancer pool: 65.8% — 122.5% vAPR
- $XAI Stable Curve pool: 12%-15% vAPR (Frax Convex)
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Roadmap Q1/Q2 2023
$SILO buyback program
The SiloDAO generates revenue from multiple sources. We expect the annualized revenue to be somewhere between ~$250K-$500K in 2023, depending on market conditions.
We have started to claim revenues and deposit them in a Gnosis Safe controlled by the core team. We will use all realized revenue to buy back $SILO tokens directly from the SILO/ETH balancer pool, amounting to roughly $25,000–$35,000 buys every month.
$SILO rewards program
Tokens purchased in the buyback program will be used to incentivize users for using the Silo protocol. For example, we can reward ETH depositors in rETH silo. Rewards will likely attract more deposits and loans. Users will receive $SILO rewards passively and claim them directly in the app.
The new rewards program will be designed such that users will still be able to borrow against their positions whilst earning rewards. This will also come with the ability for other protocols to incentivize their own pools with any ERC-20 of their choice.
Silo Arbitrum
The Silo protocol is launching on Arbitrum. We will start with a small set of markets and add more as we go. The protocol will use two bridge assets: ETH and USDC. Therefore, $XAI will not be ported on Arbitrum yet.
$XAI Credit Lines (CLs)
The SiloDAO has made a total of 18.5M XAI available for users to mint with different collateral assets such as ETH, USDC, DAI, USDT, cbETH, wstETH, OHM, and gOHM. These are called Credit Lines or CL for short.
Credit lines have been extended following governance proposals that draw from a clear risk assessment framework adopted by the DAO. Going forward, the DAO will explore more collateral assets for the purpose of minting $XAI.
Credit line extensions are a growing revenue stream for SiloDAO. Currently the SiloDAO makes roughly $60,000 annualized from the USDC silo alone. With $XAI generating roughly 15% on Frax Convex, we will see a growing demand for borrowing XAI, further increasing the DAO’s revenue and growing the DAO’s buyback program.
Lending markets for LP tokens
As announced earlier, the core team has delivered a massive codebase release to ChainSecurity for audit. The release will enable users to borrow $XAI using Curve LP tokens while collecting all CRV/CVX rewards at the same time.
Borrowing $XAI at fixed interest rates
We are about to run an experiment in the USDT and DAI silos where $XAI can be borrowed at fixed 2% APR. The experiment can be replicated to other stable silos.
Integrations with other dApps
Our silos offer unique value to users and dApps that value security above anything else. We have been working with teams on meaningful integrations that will make our markets more accessible to users, generating more deposits and borrowed volumes. The most anticipated one is Olympus DAO that will deposit OHM in the OHM silo and make it borrowable to users depositing XAI or ETH collateral.
New markets
We will keep adding markets for new tokens assets on both Ethereum and Arbitrum.
Claiming DAO’s vested tokens
The SioDAO has been vesting its 450M token allocation since November 2021. The vested tokens have never been claimed. Once claimed, a roughly 188M $SILO tokens will be available in the DAO’s treasury. DAO members control the tokens through governance. We will keep claiming the DAO’s vested tokens once a year until the DAO has vested all its 450M tokens in November 2024.
Allocating Contributors’ tokens
The DAO has allocated 10% of total token supply, or 100M $SILO tokens, to reward contributors. The contributor’s token allocation has been vesting since November 2021 and will continue to vest until November 2024. At the moment, the Development Fund has the authority to claim the contributors’ token allocation.
The core team intends to run a snapshot proposal with the following:
- Claim all vested token amount, estimated at 42M tokens.
- Allocate roughly 15.9M tokens to 9 contributors that have joined the core team since the Silo’s inception. All contributors will vest their tokens over 4 years with a 1-year cliff.
- Send all tokens in excess to the SiloDAO.
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