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 － 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%－50% 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
delegatecallto their silos, a single silo can be reused by multiple Blend vaults.