Partnership with Silo Finance
We are thrilled to announce that DIA has partnered with Silo Finance, a cutting-edge, non-custodial lending protocol, to launch a JONES lending market on the Arbitrum blockchain.
We are thrilled to announce that Silo Finance has integrated DIA’s price oracles to enable JONES lending market on the Arbitrum blockchain. By integrating DIA’s price oracles, Silo Finance will benefit from customizable and transparent price data, ensuring efficient and secure lending markets.
“We are on a mission to deploy isolated lending markets for all crypto assets. The integration with DIA opens doors for new possibilities, starting with the JONES lending market. We’re excited about the collaboration and looking forward to many DIA-supported lending markets.”Aiham JaabariSilo Finance Growth Lead
Introducing Silo Finance
Silo Finance (Arbitrum) is a non-custodial lending protocol that facilitates borrowing any crypto asset with another. By employing an isolated-pool approach, Silo Finance creates permissionless and risk-isolated lending markets.
Every token asset has its own market and is paired against bridge assets ETH and USDC. This unique approach ensures lenders are only exposed to the risk of ETH and USDC, while also preventing fractured liquidity and allowing for greater protocol efficiency by confining tokens to only one market.
Securing Lending Markets with Price Oracles
Oracles play a crucial role in lending and borrowing dApps, providing the protocols with real-time price information of digital assets. These price feeds enable lending features such as determining the market value of collateral or loans, enforcing over-collateralization rules to protect lenders and more. For every lending market Silo launches, a price feed oracle is required.
As a risk-geared protocol, the Silo community has put its trust in DIA’s transparent price oracles to launch the new lending market. Furthermore, the integration was subject to a governance vote and the Silo community voted overwhelmingly in favour of this development, with 99% of the votes supporting the proposal. View the vote results here.
— Silo Labs (@SiloFinance) April 19, 2023
Powering JONES Lending Markets on Arbitrum
In order to power the new lending market, DIA built a dedicated price oracle for Silo. The oracle was deployed on the Arbitrum network and contains a price feed for the Arbitrum native token JONES. DIA constructs this price feed by sourcing granular, trade data coming from multiple CEXs such as BKEX, MEXC and DEXs Camelot, Uniswap and more.
As requested by Silo, the trade information is aggregated with a 120-second time window and processed using the Moving Average Price with Interquartile Range (MAIR) methodology. The feeds’ specifications have were laid out and made available via the following Custom Delivery Request: CDR #042: Silo Finance | Price Feeds on Arbitrum