Silo, winner of the 2021 hackathon from ETHGlobal, starts Genesis token auction

Press release

Silo announced the launch of the Genesis Token Auction to decentralize its protocol and increase protocol liquidity for its decentralized autonomous organization (DAO). The token auction at the Gnosis auction will take place from December 6, 2021 at 3:00 p.m. UTC to December 9, 2021 at exactly 3:00 p.m. UTC.

According to Aiham Jaabari, one of the founding members of Silo, “Unlike the 2017 ICOs, which raised money for the company that developed the protocol, the liquidity of the Silo has always been under the control of the community. Therefore, the Community can instruct them to achieve a sustainable development of the Protocol. Strong DAOs establish a culture of solidarity, fairness and transparency, and we think that a token auction at Gnosis Auction, where the entire community sets a fair value for the project, is the first step in creating such a culture for Silo DAO build up. ”

The Silo team also announced their plans to launch Silo’s safe money market in early 2022. First generation credit marketplaces like Aave (AAVE) and Compound (COMP), while efficient, expose users to unexpected risks as the commons markets can inherently hold large amounts of money. Product Finance and Venus have both been exploited for the same reason in the past.

Silos run various currency markets. Instead of having a single pool for all tokens, Silo created a pool for each token. Each pool is limited to a single token, with ETH acting as a bridge asset. For any user who uses the “A” token as security to borrow the “B” token, the user must move bridge assets between silo pools, just like with Uniswap transaction pools. The only counterparty risk in pool B is ETH and not Token A. By isolating the risk of all tokens in a pool and connecting the pools using ETH as a bridge facility, connecting silo creates risk isolating credit markets for each token. Any token can be used as security.

Genesis Token Auction details

This is a public token auction by Silo. It will be carried out at the Gnosis auction. Silo will give 10% of its token offering to the community through an auction. All funds raised at the auction are essentially divided in two ways:

• Approximately 85% of the funds are kept in the DAO treasury and controlled by the community through governance (liquidity in possession of the protocol).
• The remaining 15% will be used as development funds for silo protocol operating expenses such as security services, contributor payments, infrastructure services, etc.

Why did the Silo team choose Gnosis Auction

The team entered the Gnosis auction in lieu of other available options such as balancer LBPs because of its advantages. Aside from the fact that Gnosis Auctions guarantees fair pricing and rules out the possibility of carpet drawing, it has other advantages as well. It allows the auction to end with a single clearing price for all tokens regardless of the winner’s bid. The implication is that if a bidder bids $ 5 / token and the clearing price is $ 1 / token, the bidder only pays $ 1 / token. Bots cannot buy tokens and, thanks to the user-friendly bidding process, they also have a fair and convenient distribution of tokens.

About silo

Silo is an unprotected credit protocol that is capable of implementing a secure, efficient, and comprehensive money market. It implements isolated currency markets where each silo contains only two assets (a single token and a bridged asset). Silo is a permissionless protocol that allows any user to create a market for any token. As a non-custody credit log, Silo enables users to borrow against any crypto-asset.

Media

Website: https://www.silo.finance/

Twitter: https://twitter.com/SiloFinance

Telegram: http://t.me/silo_community

Discord: https://discord.gg/silo-finance

Media: https://medium.com/silo-protocol