Summary
Silo Finance V1 is a non-custodial isolated lending protocol launched on Ethereum mainnet in August 2022, enabling permissionless markets for long-tail crypto assets by confining risk to individual lending pools (Silos). The protocol experienced two security incidents in 2023: a critical interest rate manipulation vulnerability discovered by a white-hat researcher (no user funds lost) and a white-hat drain of approximately $45,000 in SILO incentive tokens due to a separate contract flaw. The deployed production version of V1 diverges from the audited codebase, a risk the team has publicly acknowledged but not fully remediated through re-audit.
Connected Entities
1 entities- + 8 more
Timeline(18 events)
2021-12-01
SILO governance token launch; protocol begins minting 1 billion tokens over four years.
2022-01-01
Early community airdrop distributed to initial participants.
2022-04-01
SILO token reaches all-time high of approximately $1.05.
2022-05-07
Certora begins formal verification of Silo V1 protocol; process runs through July 15, 2022.
2022-07-15
Certora formal verification completes; five issues uncovered (two high, three medium) that ABDK and Quantstamp had missed.
2022-08-01
Silo V1 launches in beta on Ethereum mainnet with nine pools capped at 500 ETH each.
2022-09-01
Silo V1 full public launch on Ethereum mainnet.
2023-02-01
Silo V1 deployed on Arbitrum.
2023-04-27
White-hat researcher @kankodu reports critical interest rate manipulation vulnerability (IRMv1) via Immunefi; estimated $3 million at risk on Ethereum mainnet.
2023-05-01
New interest rate model (IRMv2) coded, tested, and deployed on Arbitrum markets, capping utilization at 100% and interest at 10,000% per year.
2023-05-07
Governance proposal executed on Ethereum to transfer control and apply IRMv2 fix to mainnet markets.
2023-05-10
Certora begins formal verification of IRMv2 fix.
2023-05-24
Certora confirms IRMv2 eliminates all identified exploit vectors; no user funds were lost.
2023-06-06
Silo Finance publishes public vulnerability disclosure detailing the IRMv1 flaw, attack mechanics, and remediation. Immunefi publishes bugfix review. Bounty of 100,000 USDC awarded to researcher.
2023-07-21
RAMSES protocol discovers vulnerability in Silo incentives contract allowing full drain of approximately $45,000 in SILO tokens. Immunefi closes bug report as out-of-scope. RAMSES performs white-hat drain to RAMSES Treasury.
2023-07-22
RAMSES contacts Silo team directly; drained funds returned in full. Both parties attribute communication failure to Immunefi triage process.
2024-01-01
Governance proposal to deprecate XAI stablecoin published, citing peg instability and pool imbalances.
2024-01-01
Silo Finance publishes 2024 roadmap announcing transition toward V2 architecture.
Decision Log
- hash: Cn5EHoHcYDkgXPbLuihorG5ekxWYtDSGtfitWJKousJs
- hash: GCxngRLr3jnBy7zpiPREqLu4sZMo3E52sKrdLWxSbZKN
- hash: 6uXrbpqCEtowhHKpRxeDszivijwsoFP8LmJPTHhZD3TJ
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:22 AM
last updated: 6/9/2026, 11:46:57 PM
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