ETH Global 2021 Hackathon Winner-Silo Protocol Announces Genesis Token Auction

By Casper Brown
Published December 7, 2021 Updated December 7, 2021
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ETH Global 2021 Hackathon Winner-Silo Protocol Announces Genesis Token Auction

By Casper Brown
Published December 7, 2021 Updated December 7, 2021

Silo Protocol does lending similar to Uniswap did for liquidity. Silo is a Non-custodial lending protocol for safe, efficient, and inclusive financial markets.

The protocol reduces hazards via its design. It creates segregated money markets called Silos, each with just two assets: the bridge asset and a unique token. New and higher-risk assets may be used in lending markets immediately without posing a systemic risk to assets stored in other Silos.

The protocol only uses one Silo per token asset. One-pool architecture focuses on liquidity and enables any token to be used as collateral. Silo is a permissionless protocol. The team behind Silo is delighted to announce its Genesis Token Auction on December 6, 2021, at 03:00 PM UTC.

The Silo DAO’s development fund will benefit from the token auction proceeds. It will be held in Silo DAO as Protocol Owned Liquidity (POL) and governed by the community. To entice users and continue protocol development, the project needs adequate liquidity in the DAO.

Around 85% of the funds will be kept in the DAO’s treasury and managed by the community (Protocol Owned Liquidity). The remaining 15% will go towards Silo Protocol’s operating costs like security, contributor payments, and infrastructure.

The Genesis Auction process has several advantages over previous systems like Balancer LBPs. Not just limited to assuring fair price and preventing rug-pulling.

The auction ends with a single clearing price for all tokens. Investors bid $5/token, and the final clearing price is $1/token; one will only pay $1. Before any token goes into circulation, the community should agree on a fixed floor value.

It has a simple bidding procedure. During the auction, bidders may calculate their optimum token price. Front running is reduced; thus, bots can’t buy tokens and sell them at a higher price. Fair and flexible token distribution takes place rather than speculation and FOMO.

Bidders save gas since they do not have to hurry to the auction. Moreover, it encourages the community to whitelist their wallet addresses on its website before participating in the auction.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Casper Brown
410 Articles
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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