๐งโ๐พSilos
Reference material for Aloe Blend silos
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Aloe Blend uses silos to take advantage of external yield opportunities and keep users' funds productive. This is possible because most Uniswap liquidity sits idle, far from the current trading range. Instead of leaving it there, Blend deposits it to silos. If the price does shift, Blend can recenter its Uniswap V3 position without locking in impermanent loss ๏ผ it just pulls the requisite funds from silos. Alternatively, if the price stays the same but volatility increases, Blend pulls from both silos in order to widen its Uniswap position. Finally, if volatility decreases, Blend narrows its Uniswap position and places excess liquidity in silos. At any given time, silos manage between 45% and 94% of pool liquidity (because 1%๏ผ50% is in Uniswap and 5% is held as float).
Each silo contains just enough logic to move funds from Blend to another protocol and back again. Since Blend vaults delegatecall to their silos, a single silo can be reused by multiple Blend vaults.
| Silo | Description |
|---|---|
Supplies funds to the Compound lending market. Logic compatible with any cToken (not cETH). Specify cToken address in silo constructor. | |
Supplies WETH to the Compound lending market. Unwraps WETH to ETH when depositing and rewraps it when withdrawing. Specify cETH address in silo constructor. | |
Supplies funds to Rari Fuse. Logic compatible with any fToken (not fETH). Specify fToken address in silo constructor. Note that fTokens are pool specific, e.g. fDAI 8 is not the same as fDAI 18. | |
Supplies WETH to Rari Fuse. Unwraps WETH to ETH when depositing and rewraps it when withdrawing. Specofy fETH address in silo constructor. Note that fETH tokens are pool specific, e.g. fETH 8 is not the same as fETH 18. | |
Supplies funds to Rari Fuse pools that have in-kind token rewards, e.g. fTRIBE when TRIBE is being distributed as an incentive. | |
Supplies funds to any yield opportunity that conforms to the ERC4626 standard. | |
Deposits assets to a Yearn vault. Behavior would be sub-optimal (but non-breaking) in cases where atomic withdrawal limit is less than balance, as only Yearn keepers have permission to replenish withdrawal queue strategies. In practice this hasn't been an issue. | |
Doesn't do anything. Useful in cases where one asset of the pair has great potential, but the other isn't supported by existing silos. |
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