How It Works

Everything you need to know about Silo — the auto-compounding yield optimizer on Abstract Chain.

Overview

Silo deposits user funds into DeFi protocols on Abstract Chain, auto-harvests rewards, swaps them back into the underlying assets, and re-deposits them — compounding your yield over time with zero manual effort.

Users deposit tokens, receive ERC-4626 silo shares, and earn compounded yield minus a small performance fee. No lock-ups — withdraw anytime.

Silo Types

Aborean V2LP Auto-Compounder

Deposits LP tokens into Aborean V2 gauges. ABX emission rewards are claimed, swapped back into the LP pair tokens, added as liquidity, and restaked — growing your LP position automatically.

Pairs: WETH-ABX, WETH-USDC, USDT-USDC, WETH-gBLUE, WETH-PENGU, WETH-YGG, WETH-ABSTER, WETH-BIG, USDC-PENGU, ABX-USDC, WETH-BORNE, and more

Aborean CLConcentrated Liquidity

Manages full-range concentrated liquidity positions on Aborean CL pools. ABX gauge emissions and trading fees are compounded back into the position automatically.

Pairs: WETH-USDC, WETH-PENGU, WETH-ABX, WETH-BURR, WETH-ABSTER, WETH-BIG, WETH-GOD, WETH-RETSBA, WETH-KONA, WETH-YGG, WETH-NOOT, WETH-GOONER, gtBTC-WETH, gtBTC-USDC, USDT-USDC, GUSD-USDC, and more

KonaLending Auto-Compounder

Deposits single assets into Kona Finance lending pools. Interest accrues automatically and is compounded back into the lending position.

Assets: USDC, WETH, USDT, PENGU

veABXVote-Escrowed ABX

Deposit ABX tokens to earn yield from Aborean's ve(3,3) system. Your ABX is permanently locked as veABX for maximum voting power. The silo votes for high-emission pools each epoch, claims trading fees, bribes, and rebases, then compounds everything back into more ABX.

90% locked as veABX, 10% kept as withdrawal buffer

Strategies

Strategies are vault-of-vaults that automatically diversify your deposit across multiple silos. Deposit a single token and the strategy distributes it by weight across its allocated silos.

Abstract Yield WETHMedium
8 silos

Diversified WETH yield across Kona lending & CL pools

Abstract Yield WETH DegenHigh
5 silos

Pure meme-pair CL exposure for maximum yield potential

Abstract Yield gtBTCMedium
2 silos

Diversified BTC across CL pairs

Strategies use ERC-4626 — deposit the underlying token, receive strategy shares. The strategy auto-distributes across silos by weight. No Zapper needed. View strategies →

How Compounding Works

LP Silos (Aborean V2 & CL)

  1. You deposit LP tokens and receive silo shares
  2. LP is staked into the Aborean Gauge for ABX emissions
  3. The harvester claims ABX rewards
  4. 5% performance fee is taken (4.5% treasury + 0.5% caller)
  5. Remaining ABX is split and swapped to the LP pair tokens
  6. New liquidity is added and restaked
  7. Your shares are now worth more LP tokens

Lending Silos (Kona)

  1. You deposit a single asset (e.g. USDC) and receive silo shares
  2. Funds are supplied to Kona Finance lending pools
  3. Interest accrues continuously on-chain
  4. The harvester compounds accrued interest
  5. Your shares grow in value over time

Zapper — Deposit Any Token

The Zapper lets you deposit any supported token into any silo in a single transaction. No need to manually swap tokens, add liquidity, or match LP pair ratios.

Supported tokens

ETHWETHUSDCUSDTABXgBLUEPENGU

The Zapper routes through Aborean to swap into the required tokens, adds liquidity, and deposits into the silo — all in one transaction. Default slippage: 2%.

Fee Structure

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

Performance fees are only charged on harvested rewards, never on your principal. Fees are capped at 5% total and can only be lowered by governance.

Referral Program

Earn a share of protocol fees by referring new depositors. When someone deposits using your referral link, you earn a percentage of the performance fee generated from their positions.

10%

Referral Share

Lifetime

Duration

On-chain

Tracking

Auto Harvester

The AutoHarvester is a keeper contract that compounds all silos automatically. Anyone can call harvestAll() and earn the 0.5% caller incentive for triggering the compound.

A minimum harvest interval (default 4 hours) prevents excessive harvesting. The keeper bot monitors all silos and triggers harvests when profitable.

Security

All smart contracts have been analyzed with multiple security tools:

Slither

Passed

Aderyn

Passed

Mythril

Passed

Contracts use battle-tested OpenZeppelin libraries (ERC4626, Ownable, ReentrancyGuard, Pausable). All silos can be paused by the owner in case of emergency.

Smart contracts carry inherent risks. Only deposit what you can afford to lose.

Risks

Smart Contract Risk

Bugs in Silo, Aborean, or Kona contracts could result in loss of funds.

Impermanent Loss

LP silo depositors are exposed to impermanent loss from price divergence of the paired tokens.

veABX Lock Risk

ABX deposited into the veABX silo is permanently locked. Withdrawals are limited to the idle buffer (10%).

Oracle / Price Risk

Token swaps during harvest rely on on-chain DEX prices, which may be subject to manipulation.

Protocol Dependency

Silos depend on underlying protocols (Aborean, Kona). Issues with those protocols affect silo deposits.

Smart Contracts

Core infrastructure contracts deployed on Abstract Chain (chain ID 2741).

SiloFactory0xfcE532BD1f46D321Bf0eBdEb1C2f2bcDd7754F93
SiloZapper0x828209bD22Fe89C5fCE96BdEeC3398d9550Ddc38
AutoHarvester0xBf2372245C0A7d3f20fd9f85Ea6DA2732B482E58
StrategyFactory0x50Df1CeBB24727885E2829d62d414fc3f154336c
VeABXSilo0x188780b8993b0374A696B536FA228e06160CFd5D

Individual silo addresses can be found on the Earn page. All contracts are verified on the Abstract block explorer.

AI Agents

Silo provides tools for AI agents to interact with the protocol programmatically. Agents can discover yield opportunities, deposit into silos and strategies, withdraw, harvest rewards, and monitor portfolios — all without a frontend. Full agent docs →

MCPModel Context Protocol Server

The Silo MCP server exposes 14 tools that any MCP-compatible AI agent can use:

list_silos

Browse all silos with APY, TVL, risk

get_best_yield

Find highest APY by risk/token

get_silo_details

Deep info on a specific silo

get_portfolio

Check wallet positions + USD values

get_harvest_opportunities

Find profitable harvest bounties

estimate_earnings

Project returns over time

get_deposit_tx

Build deposit transactions

get_withdraw_tx

Build withdraw transactions

get_harvest_tx

Build harvest transactions

get_token_prices

Get live on-chain token prices

list_strategies

Browse strategies with risk levels

get_strategy_details

Strategy allocations and weights

get_strategy_deposit_tx

Build strategy deposit tx

get_strategy_withdraw_tx

Build strategy withdraw tx

Install: cd mcp && npm install && npm run build — Run: node mcp/dist/index.js (stdio)

SKILL.mdAgent Skill File

A structured skill file that teaches coding agents (Claude Code, Cursor, Windsurf) everything about Silo — contract addresses, ABIs, APY calculation formulas, deposit/withdraw workflows, and common gotchas.

Download SKILL.md
ERC-8004On-chain Agent Identity

Silo is registered in Abstract's ERC-8004 IdentityRegistry, making it discoverable by any AI agent querying the on-chain registry. The registration includes our MCP service endpoint and agent manifest.

Registry: 0x8004A169...a432Chain: Abstract (2741)

What agents can do with Silo

Yield Farming AgentAutomatically find the best yield, deposit funds, and rebalance between silos based on APY changes.
Harvest Bounty BotMonitor pending rewards across all silos. Call harvest() when profitable to earn the 0.5% caller fee.
Portfolio MonitorTrack positions across all silos, report USD values, and alert on significant APY changes.
DCA AgentDollar-cost average into the highest-yielding silo on a schedule using the Zapper.

Token Addresses

Supported tokens on Abstract Chain (chain ID 2741).

WETH18 decimals
0x3439153EB7AF838Ad19d56E1571FBD09333C2809
USDC6 decimals
0x84A71ccD554Cc1b02749b35d22F684CC8ec987e1
USDT6 decimals
0x0709F39376dEEe2A2dfC94A58EdEb2Eb9DF012bD
ABX18 decimals
0x4C68E4102c0F120cce9F08625bd12079806b7C4D
gBLUE18 decimals
0xC25714E79b694EeE7E8e8D21dae332A797d28Ac0
PENGU18 decimals
0x9eBe3A824Ca958e4b3Da772D2065518F009CBa62
gtBTC8 decimals
0x0035b877C3aB50cFFA9eD52bA05282c7045f78dd
YGG18 decimals
0xa9053DC939D74222F7aa0B3A2bE407abbfd56C6a
KONA18 decimals
0x92aba186c85b5aFEB3a2CEdC8772Ae8638F1B565
GUSD18 decimals
0x12d3E796D1F625EB6131aEB670BcD210bBb0f903

Protocol Addresses

Key protocol contracts used by Silo on Abstract Chain.

Aborean Router0xE8142D2f82036B6FC1e79E4aE85cF53FBFfDC998
Pool Factory0xF6cDfFf7Ad51caaD860e7A35d6D4075d74039a6B
Kona Lending Pool0x8f16B5713F412C5dE4951Aaf678Eb8409101f819
ERC-8004 IdentityRegistry0x8004A169FB4a3325136EB29fA0ceB6D2e539a432
ERC-8004 ReputationRegistry0x8004BAa17C55a88189AE136b182e5fdA19dE9b63

FAQ

Do I need LP tokens to deposit?
No. The Zapper lets you deposit any supported token (ETH, USDC, ABX, etc.) into any silo. It handles all swaps and liquidity pairing automatically.
How often does compounding happen?
The keeper bot harvests roughly every 4 hours. Anyone can trigger a harvest manually and earn the 0.5% caller incentive.
Can I withdraw at any time?
Yes, all silos allow instant withdrawal with no lock-up or exit fee. The exception is veABX, where withdrawals are limited to the idle ABX buffer (~10%).
What is the veABX silo?
It locks your ABX as permanent veABX to earn maximum voting rewards. The silo votes for high-emission pools, claims fees/bribes/rebases, and compounds them back into ABX. Withdrawals are limited to the idle buffer since the rest is permanently locked.
Are the contracts audited?
Contracts have been analyzed with Slither, Aderyn, and Mythril with no actionable findings. They use battle-tested OpenZeppelin libraries. A formal third-party audit is planned.
What happens if a harvest fails?
Nothing — your funds remain safely staked. The next harvest attempt will try again. Failed harvests don't affect your deposited principal.
How do AI agents interact with Silo?
Through our MCP server, which exposes 14 tools for listing silos and strategies, depositing, withdrawing, harvesting, and checking portfolios. Any MCP-compatible agent (Claude, ElizaOS, custom bots) can connect and farm yield autonomously.
What is the SKILL.md file?
A structured file that teaches AI coding agents everything about Silo — contract addresses, ABIs, APY formulas, and workflows. Install it in Claude Code or Cursor to build Silo integrations.
What are strategies?
Strategies are vault-of-vaults that automatically diversify your deposit across multiple silos. Deposit WETH into ayWETH and it splits across 8 different silos by weight. They use ERC-4626 just like silos — deposit the underlying token, get shares back.
Strategy vs Silo — which should I use?
Use a silo if you want a specific pool/pair or maximum control. Use a strategy for set-and-forget diversification. Strategies spread risk across multiple yield sources automatically.
Can agents earn money from Silo?
Yes. Any agent can call harvest() on silos with pending rewards and earn the 0.5% caller fee. No deposit required — just call the function when rewards have accumulated.

Yield Assistant

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