📈 Silo Finance launches xSILO: a new token for governance and rewards Over the past year, @SiloFinance's protocol revenue has grown steadily — according to @tokenterminal data, revenue was around $94,000 in June 2024 and has grown to about $209,000 by May 2025. This growth is driven by three features of its design: the use of risk-segregated lending pools, the integration of yield-based assets, and the continuous optimization of overall capital efficiency. 🔗 Token Terminal Data: On this basis, Silo announced the launch of a new token, xSILO, as a reward and governance tool for the Silo protocol. xSILO is a liquid staking derivative token based on the ERC-4626 standard, and users can mint xSILO by staking $SILO. The minting ratio will change with the compounding of the protocol income, i.e., the exchange ratio of each xSILO to $SILO will gradually increase. Regarding the redemption mechanism of xSILO, users have two options: - Instant redemption: 50% of the current index ratio, suitable for users with high liquidity needs; - Redemption after 6 months vesting period: SILO can be redeemed in full at a 1:1 ratio. In addition, users can also choose a redemption period in between, and the redemption ratio will increase linearly over time, balancing income and liquidity. There are two main sources of value for xSILO: - Protocol buyback: SiloDAO will use 50% of the protocol's monthly revenue to buy back SILO and inject this part of the token into the xSILO reward pool; - Early Redemption Fee: The difference when a user chooses to redeem xSILO immediately will also be redistributed to users who still hold xSILO. According to the official narrative, in June 2025 alone, it is expected that about $90,000 in SILO will be used for market buybacks and distributed to xSILO users as rewards. As the protocol grows, so does the size of the allocation. In addition to the distribution of revenues, xSILO will also assume governance functions in the future, and holders can participate in decision-making and the formulation of key parameters such as incentive distribution mechanisms. In addition, xSILO also has a cross-chain function, which supports compatibility and circulation between multiple chains through the CCIP protocol of @chainlink. At present, xSILO has been officially launched, and users can go to the official platform to participate in staking and exchange: 🔗 Read the official tweet:

📖 Read more: