Silo Finance Review
Liquidation fee fixed at deployment, forever
of 10
Silo sets each market's liquidation fee at deployment and states it cannot be changed afterwards — a stronger guarantee than any timelock. Its licence runs under BUSL until 2031, the longest delay in this comparison.
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Licence
BUSL-1.1, change date 31 Jan 2031 to GPL-2.0-or-later
Max fee (code cap)
50%
Liquidation fee
Set per market at deployment, immutable thereafter
Auditors
Certora, Enigma Dark, Spearbit Cantina, Sigma Prime, Code4rena
Governance
Ownable2Step on the factory; no timelock stated
Scores
Each criterion carries equal weight. The overall score is the average of these 5 scores — (6.0 + 3.0 + 7.0 + 5.0 + 10.0) ÷ 5 = 6.2.
Pros
- Liquidation fee set per market by the deployer and cannot be changed afterwards
- Hard cap in code: maximum fee 50%, with separate limits for deployer, flashloan and liquidation fees
- Audited by Certora with formal verification, plus Enigma Dark, Spearbit Cantina, Sigma Prime and a Code4rena contest
- SiloDAO granted explicit rights to operate the protocol under the licence
Cons
- Business Source License 1.1 with a change date of 31 January 2031, the longest here
- Actual fee values are set at deployment and not published in the documentation
- Liquidation thresholds are referenced but their values are not stated
- Factory uses Ownable2Step with no timelock documented
Immutable where it matters most
Silo states that the liquidation fee is set per market by the deployer and cannot be changed afterwards. That is a stronger protection than a governance delay: a timelock gives you warning that your terms are changing, while immutability means they cannot. For the single parameter that determines what a liquidation costs you, that distinction is worth a good deal.
Caps in the code
The factory hard-codes a maximum fee of 50% with separate ceilings for deployer, flashloan and liquidation fees, and a DAO fee range. What is capped is documented; what is actually set is not.
The licence horizon
Business Source License 1.1 with a change date of 31 January 2031 — five and a half years away at the time of writing, and the longest delay of any protocol in this comparison before the code becomes GPL.
How it compares
Fluid
Four audit firms, almost nothing else published
Compound
Timelock-controlled, with a lapsed licence date
Radiant Capital
72-hour timelock, no licence at all
Spark
Publishes the close factor that most protocols hide
Aave
49 audit reports and a stated governance delay
Euler
Governance limits enforced permanently in code
Kamino
Publishes what it charges, per market
Venus Protocol
The most precisely documented governance delays
Morpho
GPL-licensed with published liquidation curve
Sources
Scored from published primary sources rather than hands-on use. Every figure above comes from one of the pages below, on the date shown. Manufacturers change prices and specifications without notice — if something here no longer matches the source, tell us and we will correct it.
- 1.Silo — liquidation documentation — checked
- 2.Silo v2 contracts — LICENSE — checked
- 3.Silo — audits — checked
Frequently asked questions
Can Silo change a market's liquidation fee?
No. The documentation states the fee is set per market by the deployer and cannot be changed afterwards.
When does Silo's code become open source?
The BUSL-1.1 licence names a change date of 31 January 2031, after which it converts to GPL-2.0-or-later.
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