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Silo V2 Review 2026: Isolated Lending Markets

Silo V2 is a lending protocol from Silo Finance that offers permissionless, risk-isolated markets on Sonic, Avalanche, Arbitrum and Ethereum. Its TVL is modest at about 4.1 million USD, and the app now highlights a V3 version.

By the DappsAtlas editorial team · Updated Nov 4, 2026

DappsAtlas score

6.4/10

Mixed

Visit Silo V2

Our verdict on Silo V2

6.4/10

Silo V2 suits DeFi users who want to lend or borrow in separate, isolated markets and are comfortable checking each market's risks themselves. Its main strength is that isolation contains the damage when one market goes wrong. The main caveats are its modest TVL of about 4.1 million USD, a 23.0% weekly drop in the data, and a V3 option in the app that raises questions about V2's future. Use small amounts first and read the audit details.

Score breakdown

How Silo V2 scores

Security: 6.5/10
Ease of use: 6.5/10
Fees: n/a
Features: 6.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Silo V2?

Silo V2 is a version of Silo Finance, a decentralized lending protocol. DefiLlama describes it as creating permissionless and risk-isolated lending markets. It is listed in the Lending category and has been tracked since January 2025.

The protocol runs on Sonic, Avalanche, Arbitrum and Ethereum. DefiLlama shows total value locked of about 4.1 million USD, down 23.0% over the past seven days. It lists a SILO token and two audits.

The app has Explore, Earn, Borrow and Portfolio sections, plus a V3 option in the navigation. That suggests Silo has moved on to a newer version, though the project does not explain how V2 and V3 relate.

How Silo V2 works

Silo is a lending protocol. Users deposit assets into a market to earn interest, and other users borrow from that market by posting collateral. Interest rates are set by smart contracts based on supply and demand rather than by a company.

What sets Silo apart is that markets are isolated. Instead of pooling every asset together, each market holds its own assets and risks. If one collateral asset falls sharply or a price feed fails, the losses should stay inside that market.

The protocol also describes its markets as permissionless, meaning markets can be set up without central approval. This gives flexibility but puts more of the due diligence on users, who need to check each market's assets and parameters.

6 features

Key features

Permissionless markets

Markets are described as permissionless, so new lending markets can be created without a central gatekeeper approving each one.

Risk isolation

Each market is isolated, which limits how far a failure in one asset pairing can spread to others.

Earn section

The app has an Earn section where users can supply assets to markets to earn interest.

Borrowing

A Borrow section lets users take loans against collateral in the available markets.

Portfolio view

A Portfolio page lets users view their positions in one place, based on the navigation shown.

Multi-chain deployment

The protocol is listed on Sonic, Avalanche, Arbitrum and Ethereum, so users can pick a network.

Pros and cons

What we like

Risk-isolated markets limit how far losses can spread between assets.
Permissionless design allows new markets without central approval.
Available on four networks, including Ethereum, Arbitrum, Avalanche and Sonic.
Two audits are listed on DefiLlama.
The app has a simple structure of Explore, Earn, Borrow and Portfolio.

Watch out for

TVL fell 23.0% over the last seven days, which may signal capital leaving or a market-driven swing.
Total TVL of about 4.1 million USD is modest next to the largest lending protocols.
Each isolated market carries its own risk, so users must assess every market separately.
The homepage now points to V3, so V2 may be an older version with a shifting focus.
Fee levels, interest models and liquidation parameters are not published.
Only two audits are listed and public sources give no detail on their scope or findings.

Silo V2 fees

Fee details are not published. Lending protocols typically charge borrowers interest, with part of it going to lenders and part to the protocol or market creator, but the exact split for Silo V2 is not stated.

Users would see current supply and borrow rates inside each market in the app's Explore, Earn and Borrow pages. Network gas fees on the chosen blockchain also apply to every transaction.

Is Silo V2 safe?

DefiLlama lists two audits for Silo V2, but the project does not name the auditors or detail their findings. Lending protocols carry smart-contract risk, oracle risk and liquidation risk, and audits reduce but do not eliminate these. Public sources mention no hacks or incidents, but that is not proof that none occurred.

The protocol is non-custodial in the usual DeFi sense, meaning users interact from their own wallets. Isolation limits contagion between markets, but each market can still fail on its own, especially permissionless ones with less established collateral. Regulatory status is not stated. Never borrow more than you can safely cover, and keep a buffer against price drops.

6 steps

How to get started with Silo V2

1
Open the official Silo app and review the Explore page to see the available markets.
2
Check which network each market is on and make sure your wallet supports it.
3
Read each market's collateral, borrow asset and risk details, since every market is separate.
4
Connect a compatible crypto wallet and keep some of the chain's native token for gas.
5
Start with a small deposit in the Earn section, or supply collateral before borrowing.
6
Monitor your position in the Portfolio page and keep a safe margin to avoid liquidation if you borrow.

Open Silo V2

Who Silo V2 is for

Silo V2 is for experienced DeFi users who want to earn yield on idle crypto or borrow against collateral and prefer isolated markets over one shared pool. It is less suited to beginners who are not ready to evaluate each market's collateral, oracle and liquidation risks.

Silo V2 FAQs

What is Silo V2?

Silo V2 is a version of Silo Finance, a lending protocol. It describes itself as creating permissionless and risk-isolated lending markets, where users can lend assets to earn yield or borrow against collateral.

Which blockchains does Silo V2 support?

DefiLlama lists Silo V2 on Sonic, Avalanche, Arbitrum and Ethereum. Which markets are available on each chain is not detailed publicly.

What does risk-isolated lending mean?

Risk isolation means each market is separate from the others. If one market suffers bad debt or a problem with its collateral, the damage should stay in that market rather than spread to the whole protocol. Users are still exposed fully to the market they choose.

Does Silo have a token?

DefiLlama lists a token called SILO. The project does not say what the token does, so check the project's official documentation for its role in governance or incentives.

Has Silo V2 been audited?

DefiLlama lists two audits, but the project does not name the auditors or say what they found. No audit removes smart-contract risk, so only commit funds you can afford to lose.

Is there a newer version than Silo V2?

The app's navigation shows a V3 option next to the main sections, which suggests a newer version exists. The project does not say how V2 and V3 relate or whether V2 is being phased out, so check the official app and announcements.

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