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 silo shares, and earn compounded yield minus a small performance fee.

How Compounding Works

  1. You deposit LP tokens into a silo and receive silo shares
  2. The silo 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

SiloFactory0xfcE532BD1f46D321Bf0eBdEb1C2f2bcDd7754F93
SiloZapper0x83f29aA57E3Df703368e369ECD811B3189f19afe
AutoHarvester0x9F78bd07A35Fa5903687FEF28c0e730a309D905E