SILO

How It Works

Silo is an auto-compounding yield optimizer on Abstract Chain.

Overview

The protocol deposits user funds into Aborean (the main DEX on Abstract) and Kona (a lending protocol). It auto-harvests reward tokens, swaps them back into the underlying assets, re-deposits them, and compounds returns over time.

Users deposit LP tokens or single assets, receive ERC-4626 vault shares, and earn compounded yield minus a small performance fee.

How Compounding Works

  1. You deposit LP tokens into a vault and receive vault shares
  2. The vault stakes your LP into the Aborean Gauge to earn ABX emissions
  3. Anyone can call harvest() to trigger compounding
  4. The harvester claims ABX rewards from the Gauge
  5. A 4.5% performance fee goes to the treasury, 0.5% to the harvest caller
  6. Remaining ABX is split, swapped to the LP pair tokens, and added as liquidity
  7. New LP tokens are restaked into the Gauge
  8. Your shares are now worth more LP tokens (compounding)

Fee Structure

Fee TypeAmount
Performance fee (on harvested rewards)4.5%
Harvest caller incentive0.5%
Deposit fee0%
Withdrawal fee0%

Total fees are capped at 5% maximum and can only be lowered by governance.

Smart Contracts

VaultFactory0xceF3bE198fBa8f468aD5688a98E95AD2F59f8F02
VaultZapper0x5efee6cfb542378f7f8a8a06a6bdfa2ba534f7a2
AutoHarvester0xd245bb239f43588f20b76af1ab3b4ce6598dd4f6