Silo V3 Review 2026: Risk-Isolated Lending on Seven Chains

Silo V3 is the current version of Silo Finance, a decentralized lending protocol that creates permissionless and risk-isolated lending markets. Users can lend assets to earn interest or borrow against collateral, with each market kept separate from the rest.

The protocol is listed on seven networks: Ethereum, Arbitrum, Avalanche, Sonic, Injective, XDC and MegaETH. Total value locked is roughly $4.3 million, which is a small base for a lending protocol. Two audits are listed, and the project has its own token, SILO.

The app homepage shows only navigation for Explore, Earn, Borrow and Portfolio, so details such as fees, team and audit reports are not published there. The developer documentation covers subgraphs for V2 and V3 and links to a GitHub and a knowledge base.

Silo is a lending protocol. Lenders deposit assets into a market and earn interest paid by borrowers. Borrowers post collateral and take a loan against it, and if the collateral value falls too far, the position can be liquidated to repay the debt.

The distinctive part is isolation. Instead of one large pool where every asset backs every loan, Silo uses separate markets. Risk stays inside the market where it arose, so a volatile or manipulated asset in one market should not drain deposits in another.

Markets are permissionless, meaning new ones can be created without a central gatekeeper. The project's developer materials describe programmable markets that can plug into other DeFi applications. The app itself is organised into Explore, Earn, Borrow and Portfolio sections.

Silo does not publish a fee schedule on its app homepage. Interest rates for lenders and borrowers are set per market and are shown within the app, so compare them before depositing or borrowing.

Beyond protocol rates, you pay network gas fees on whichever chain you use. These vary by chain and congestion. Any protocol or liquidation fees should be checked in the documentation before you open a position.

Silo is non-custodial lending, so funds sit in smart contracts rather than with a company. The main risks are smart-contract bugs, oracle problems, liquidation of leveraged positions and bad debt in a market. Isolation is meant to contain these risks to the affected market, but it does not eliminate them for depositors in that market.

Two audits are listed for the protocol. The app homepage does not give the auditors, scope or findings, so read the reports before depositing. No incident details are stated. Never lend or borrow more than you can afford to lose, and only use markets whose assets and settings you understand.

Silo V3 is for experienced DeFi users who want to lend or borrow in separate markets and can judge collateral, oracle and liquidation risk themselves. It is less suited to beginners who want a single, simple savings rate or a protocol with deep liquidity.