📈 Silo Finance launches xSILO: a new token for governance and rewards Over the past year, @SiloFinance's protocol revenue has steadily increased—according to @tokenterminal data, revenue was approximately $94,000 in June 2024, and by May 2025, it had grown to about $209,000. This growth is primarily attributed to three design features: the adoption of a risk-isolated lending pool mechanism, integration of yield-bearing assets, and 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, allowing users to mint xSILO by staking $SILO. The minting ratio will change with the compounding of protocol revenue, meaning that the exchange rate of each xSILO relative to $SILO will gradually increase. Regarding the redemption mechanism for xSILO, users have two options: - Immediate redemption: can receive 50% of the current index ratio, suitable for users with high liquidity needs; - Redemption after a 6-month vesting period: can be fully exchanged for SILO at a 1:1 ratio. Additionally, users can choose a redemption duration that falls between the two options, with the redemption ratio increasing linearly over time, balancing yield and liquidity. The value of xSILO primarily comes from two sources: - Protocol buyback: SiloDAO will use 50% of the protocol's monthly revenue to buy back SILO and inject this portion of tokens into the xSILO reward pool; - Early redemption fees: the difference generated when users choose to redeem xSILO immediately will also be redistributed to users still holding xSILO. According to official statements, it is expected that approximately $90,000 worth of SILO will be used for market buybacks in June 2025 alone, and distributed as rewards to xSILO users. As the protocol grows, the scale of related distributions is also expected to continue to expand. In addition to yield distribution, xSILO will also take on governance functions in the future, allowing holders to participate in decision-making regarding key parameters such as incentive distribution mechanisms. Furthermore, xSILO will have cross-chain capabilities, supporting compatibility and circulation across multiple chains through @chainlink's CCIP protocol. Currently, xSILO has officially launched, and users can visit the official platform to participate in staking and redemption: 🔗 Read the official tweet: