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Addressing the longstanding problems of crypto lending

                                                            Wenn es einen Teil der Blockchain-Industrie gibt, der disruptiv war, dann war es der Crypto-Kreditsektor im DeFi-Bereich.

Historically, credit has been very centralized and under the control of banks, often with strict conditions. DeFi crypto lending bypasses this because people are using a combination of smart contracts and Cryptocurrency Access credit while maintaining privacy.

However, this system was far from perfect as malicious parties have attempted to exploit smart contracts and attack the liquidity pools of even the largest DeFi platforms. In the latter case, some credit protocols have moved to segregating cryptocurrency pools in order to minimize the possible harm from these attacks. However, these efforts have not completely contained the problem.

This is because they either split cryptocurrencies into pools based only on trading pairs or they create multiple smaller pools of different cryptocurrencies. However, a new protocol, the Silo Protocol, has found a way to reduce the impact of a potential attack on the smallest of miners.

This is how the silo log works

Silo is an unprotected credit protocol that enables isolated money markets made up of only two assets. The assets are the token itself and ETHthat act as a bridge token between the various money markets. With Silo, users can build a money market against any asset.

The fact that each asset has its own independent money market means that the risks associated with each asset are contained in a single market. The potential of the Silo Protocol was clearly recognized by the industry when it won the ETHGlobal 2021 Hackathon.

Now, Silo Protocol’s management has outlined plans to expand its business, mostly with an upcoming token sale.

Silo Protocol held its Gnosis auction this month, which allowed prospects to buy 10% of Silo’s token offering put for sale.

The main reason for the sale is to provide liquidity for the decentralized autonomous organization (DAO) from silo, and the funds raised will be distributed for two purposes. 85% of this will be placed in the DAO’s treasury and its future use will be voted on by the community. The rest will be used as a development fund.

The reason Gnosis was used as the platform of choice for sales was because of its pricing mechanisms. Gnosis prevents bots from buying tokens and uses a clearing price mechanism for all tokens for sale.

The Silo team has also reiterated their commitment to ensuring that the ecosystem is as community-focused as possible during the fundraising process.

“In contrast to the 2017 ICOs, where the funds raised went to the company that developed the protocol; The protocol’s own liquidity raised by Silo is always in control of the community. The Community can therefore instruct it to achieve sustainable growth of the Protocol.

Strong DAOs create a culture of togetherness, fairness and transparency, and we think that auctioning tokens at the Gnosis auction, where the entire community sets a fair value for the project, is the first step in building such a culture is. for Silo DAO, ”said Aiham Jaabari, a founding member of the Silo.

Source: Crypto News Deutsch

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