Silo V3 is live

Silo Finance launched V3 and activated a dual‑liquidation mechanism aimed at tightening risk management on its lending markets — V3 is live now. Expect teams to monitor liquidation frequency and changes in LTV behavior as the new mechanics settle. (x.com)

Silo Finance rolled out V3 on March 24, 2026, according to industry reporting that first covered the upgrade announcement. (theblock.co) The release embeds a protocol-level insolvency‑protection layer and a dual‑liquidation architecture that decouples a silo’s solvency constraints from the need to immediately swap collateral into the borrowed asset. ( ) Silo specifically names previously excluded collateral types the upgrade targets—structured LP tokens, time‑locked tokenized strategies and “CeDeFi” assets with off‑chain redemption paths—as use cases unlocked by the new liquidation rules. (theblock.co) Under V3 each market (silo) is backed by paired ERC‑4626 vaults and retains the protocol’s peer‑to‑pool, overcollateralized model, with the upgrade deployed on Ethereum, Sonic, Arbitrum and Avalanche. ( ) The team published a public audit timeline showing multiple security reviews prior to launch, including Sigma Prime in early March 2025, a Certora review in late March 2025 with a follow‑up in April 2025, and a Code4rena event on March 31, 2025. (docs.silo.finance) Silo linked live analytics via Dune, DeFiLlama and TokenTerminal to surface on‑chain metrics such as silo utilization, liquidation events and LTV ratios for protocol observers and integrators. ( ) Industry coverage frames V3 as a structural move to broaden acceptable collateral by reducing dependence on deep DEX liquidity, with outlets including The Block, The Defiant and BeInCrypto highlighting the potential market‑access implications. ( )

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