Allocate 45,000 APE to Silo Finance Lending Market

Allocate 45,000 APE to Silo Finance Lending Market

Proposal Category: AIP, Treasury, Voting, DeFi Integration


Sio Finance would like to request a capital injection of 45,000 APE tokens to its permissionless risk-isolated lending market. The APE tokens will help kickstart lending liquidity and create a new revenue source for ApeDAO. Silo markets are non-custodial and as such can be removed at the behest of the ApeDAO at any point in time without the consent of Silo.

Silo has already done similar successful programs with the Balancer and Aura DAOs.


Silo Finance is a non-custodial lending protocol that creates risk-isolating money markets. In our lending protocol, each market - we call it a silo - consists of a base asset such as $APE and two bridge assets, ETH and a stablecoin XAI (pronounced /zī/ ). Borrowers in each silo (market) are only exposed to the risk of 3 assets at any time rather than all the assets in the protocol.

This secure design of money markets protects borrowers against lending hacks, as experienced in previous exploits of Cream Finance, Venus protocol, and, recently, Mango Markets. Because our isolated silos don’t share risk, the Silo lending protocol can theoretically create unlimited money markets.

Our implementation of money markets is drastically different from shared-pool lending protocols like Compound and Aave, where all token assets sit in one market only. As such, if one token asset is manipulated, the entire protocol becomes at risk of insolvency.

Our team is partially doxxed and counts on the help from a multitude of prominent and respected advisors.


  • Yoshua Urioste (BD Lead - ME!)
  • Aiham Jaabari (Head of Growth and Founder)
  • Shadowy Edd (Smart Contracts Lead and Founder)
  • Ihor (SC Engineer)
  • Neo Racer (SC Engineer)
  • Siros (Front End Lead and Founder)
  • El II (FE Engineer)
  • Tyko (FE Engineer)
  • Sergey Maksinov (Product Manager)
  • Andrew (Product Design)
  • Anton (Mathematician)
  • Alexey (Mathematician)


  • Sam Kazemian (Frax)
  • Tyler Ward (BarnBridge)
  • Ameen (Reflexer)
  • ShapeShiftDAO
  • Joey Santoro (Fei)
  • Tyler Reynolds
  • Santiago R Santos
  • Regan Bozzman (Lattice)
  • Emile (XDefi)
  • Sherwin Lee and Keith (DeFi Capital)

Motivation - The $APE silo

The Silo protocol has deployed a risk-isolated market for $APE consisting of three assets: $APE-ETH-XAI.

This means users can do the following for example:

  • Deposit $APE into the APE silo.
  • Borrow ETH or XAI from the APE silo.
  • Deposit the borrowed ETH into the WBTC silo.
  • Borrow WBTC from the WBTC silo.

Because both APE and WBTC silos are isolated, any manipulation of the WBTC silo will not impact $APE depositors. Soon, $APE depositors will be able to borrow any of our 30+ assets while limiting their risk to one market at a time.


If the proposal is successful, In addition to making non-inflationary yield on its $APE deposit, this new lending market will enable whole new use cases for token holders and other market participants including but not limited to:

  • Leverage Long/Short.
  • Borrowing assets to Farm.
  • Delta Neutral farming.

Silo Finance has always been friendly to ApeDAO, using APE as one of its beta test assets from launch. Silo was also the first lending platform to create lending markets for the token. At current depth it is hard to garner APE deposits, for this reason we need APE to help us stimulate the market and allow it to grow.


Silo counts on two audits from reputable auditors (ABDK and Quanstamp), full formal verification via Certora and a Immunefi Bug Bounty.

Individual reports and details can be found here: Audits & Formal Verification - Developer Docs

Sepcifications / Steps to Implement

To deposit $APE into the Ape silo, the treasury multi-sig would need to do the following:

  1. Approve APE transfer to APE silo 0xd953cC57D906e1F2D7d6C8C50A369Ff64096DDC5
  2. Call deposit(address _asset, uint256 _amount, bool _collateralOnly) on Silo contract (0xd953cC57D906e1F2D7d6C8C50A369Ff64096DDC5) where _asset is APE address, _amount is amount of APE deposited and _collateralOnly is false.

Enter overall cost

Silo Finance is asking for 45,000 APE tokens however it is worth noting that the ApeDAO doesn’t have to give Silo’s team or any other entity anything, the protocol is permisionless, risk-isolated and non-custodial by design. The ApeDAO won’t actually be spending any of this money as it is directly available to them for withdrawal. Quite the opposite, this will actually generate revenue to the DAO in a non-inflationary way.

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Hey congrats @Tenzent I’ve been following Silo since beta and I’m stoked to see you guys gathering liquidity. Thank you so much for your AIP Idea! I will reach out to you in DMs but wanted to share here that with our current DAO architecture there are a few bumps in the road in terms of implementing this AIP.

The APE Foundation currently holds the entirety of our Treasury, (:sweat_smile:) and they are a not for profit Cayman Island Foundation. They won’t be able to deposit any APE into Silo from the perspective of the Foundation. Your team, or more preferably, a treasury working group would need to take custody of this grant request to facilitate the deposit.

We do have a DAO owned multi-signature wallet that was set up as a part of AIP-98:

I don’t want to discourage you, as there are clear workarounds, but I do want to make clear the APE Foundation won’t be able to participate in any investments like this. Personally, I would reach out to @zheerwagen and see if there is potential there for the multi-sig to take custody and facilitate the depoist.


Your AIP specifies the DAO would retain custody of these assets, is there any timeline you’d like us to keep them deposited in Silo? I’m guessing at least 1 year, but I just want to set expectations up front on when our liquidity obligations would be over after passing this AIP. Not to imply there is reason to move it around in a year, I just want to get clear on expectations. =)


Sounds like centralised hedge fund set us asking for free money.

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Our project is completely decentralized - all lending is non-custodial like AAVE/Compound except with a difference in pool design (our code is original). Our multi-sig has no control over the protocol, it’s fully onchain unlike most other projects - we’ve put a great deal of effort into making this the case. The SiloDAO controls specific parameters but cannot directly affect any user funds due to the immutability of our pools.

More on what SiloDAO controls: SiloDAO - Silopedia

@Amplify I appreciate all the helpful suggestions and input and will come back with an adjusted proposal to satisfy the unique standing of ApeDAO today.

Thank you for the feedback thus far - any input critical or supportive is super appreciated and I will do everything I can to answer any and all questions.


Hi @Tenzent,

Many thanks for the interesting and well thought out idea. Since joining this community, I have been thinking of ideas for the use of the Ape Treasury, where the Ape held could be accumulating low risk interest, whilst value adding proposals are being thought of and journey through the whole process to full implementation. Would you be able to set out on behalf of the Ape community, what you see as the detailed risk and return characteristics for the Ape DAO of providing finance to the Silo lending market?

This would help the community in its decision making regarding your idea.

Many thanks,


Hello @Tenzent

This proposal is approaching the end of the seven day window for community discussion. Would you like to extend this discussion period by another seven days? If not, this proposal will move to Draft Preparation tomorrow.


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Not sure how funding this would be possible. But as @Amplify mentioned, there can be workarounds.
Other than that, where can we check some Sio Finance stats? Like how many daily users, volumes, etc.

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This topic was automatically closed after 7 days. New replies are no longer allowed.

Hello everyone,

A thank you to @Tenzent for their ideas and the ApeCoin DAO community for the thoughtful discussion. A moderator will get in touch with the author to draft the AIP in the appropriate template.

Follow this Topic as further updates will be posted here in the comments. @Tenzent please see your messages for the next steps.


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Hi ApeCoin DAO Community,

@Tenzent has requested to withdraw their application. This AIP will be moved to and remain in the Withdrawn AIPs category.

Kind Regards,