Earn $S and Yield by Depositing in Silo Isolated Pools in the Velvet Trade Terminal
Access risk-isolated lending, earn double rewards, and manage it all in one click—only on Velvet Capital
We’re excited to announce the latest addition to the Velvet Capital Trade Terminal: Silo Finance’s Isolated Market Pools are now live and integrated, giving DeFi users a seamless, one-click way to access Silo's lending markets directly through Velvet.
What is Silo Finance?
Silo Finance is a decentralized, risk-isolated lending protocol designed to offer safe, efficient money markets for all crypto assets. In traditional lending protocols, all assets are pooled together, creating systemic risk where one bad asset can compromise the entire market. Silo solves this by creating an isolated lending market for any two token pairs - for example, this could be a PT-aUSDC-USDC pair or S-USDC pair.
Each Silo market allows two-way lending between the two tokens, ensuring every token has a home and enabling seamless routing of liquidity between silos. This modular structure offers the safety of isolation with the connectivity of a unified protocol.
Silo is governed by a DAO, and all markets can have different parameters which is beneficial in tailoring interest rate models, collateral factors, etc. to the specific token, promoting composability across the system. The protocol also uses Chainlink oracles and relies on the security of its isolated architecture to support long-tail and volatile assets that are typically excluded from other platforms.
With Velvet’s integration, users can now deposit into Silo’s isolated pools directly from the Velvet Trade Terminal—no need to leave the app or manage complex workflows.
Growth of Silo Finance
Since its launch, Silo Finance has grown into one of the most prominent lending protocols in DeFi, known for its novel approach to risk isolation. As of 2025, it has reached over $350 million in Total Value Locked (TVL) on Sonic (making it the third-largest protocol).
Silo's success is built on its isolated lending architecture, markets are constructed as token pairs. This design eliminates the risk of systemic contagion often found in traditional lending markets, where bad debt in one asset can affect the entire pool. As a result, Silo can support a broad range of long-tail assets without compromising on safety.
The protocol continues to evolve with innovations like managed vaults (which will soon be on Velvet), enhanced UI/UX, and broader integrations, which are attracting both retail users and sophisticated DeFi strategists. By maintaining high capital efficiency and robust security practices, Silo has become a foundational piece in the modern DeFi stack.
You can learn more about how Silo works in their official docs.
Why This Integration Matters
One-Click Access – Trade and deposit into Silo Pools in one simple action from Velvet’s streamlined interface.
Enhanced Risk Management – Thanks to Silo’s isolated design, users get more secure exposure to high-yield lending markets.
Optimized UX – Velvet Capital’s Trade Terminal now offers a frictionless onramp to yield strategies powered by Silo, bringing even more utility to our DeFi Operating System.
Earn Up to $20,000 in $S by Trading Silo Pools on Velvet
To celebrate this integration and our ongoing campaign on Sonic, we’re adding extra rewards:
When you use Velvet Capital to trade or deposit into Silo Pools, your total trade volume counts toward our up to 20,000 Sonic Incentives Program.
✅ The more you trade, the higher your share of the rewards pool.
✅ Eligible trades must go through the Velvet app.
✅ You can track your rewards and progress right in the UI.
✅ Some Silo Pools are also eligible for Sonic rewards from the Silo side, allowing you to earn double rewards—from both Velvet Capital and Silo Finance—for the same activity.
📖 Read more about the campaign: Sonic Incentives — Earn Your Share
Why Use Silo Pools via Velvet?
All-in-One DeFi Terminal – No need to hop between platforms. See and trade all your spot and DeFi positions in one place
Meta-Aggregator + Lending Access – Combine intent-based trade execution with lending strategies making your life much easier.
Eligible for Incentives – Unlock $S rewards as you trade.
How to Deposit in Silo Pools on Velvet
Getting started with Silo Pools through Velvet is simple and takes just a few steps:
Open the Velvet Capital App – Go to dapp.velvet.capital and navigate to the Trade Terminal.
Connect to Sonic
Select DeFi Pools
Select a Silo Pool – Browse the list of available Silo Finance isolated pools.
Choose Your Asset – Pick the token you want to deposit.
Click 'Deposit' – With one click, you can allocate your funds into the chosen Silo pool, all from within the Velvet interface.
Track Your Position – Monitor your deposit, yield, and eligibility for $S rewards right in your dashboard.
A short video tutorial on depositing into Silo pools will be added here soon!
Get Started Now
Start earning yield and rewards by exploring Silo Pools on Velvet Capital’s Trade Terminal.
🔹 Trade Silo now on Velvet: Launch App
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Explore smarter trading. Access isolated markets. Earn as you trade. Only on Velvet Capital.