Silo V3 Introduces a New Liquidation Mechanism for Crypto Collateral

The update points to broader collateral options in decentralized lending, with liquidations designed to support new asset types.

Summary

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Terms & Concepts
  • Liquidation: The forced sale of a borrower’s collateral when a loan no longer meets required risk thresholds.
  • Crypto collateral: Digital assets pledged to secure a loan in a crypto lending or borrowing arrangement.
  • Decentralized lending: Blockchain-based lending that uses smart contracts (self-executing blockchain code) instead of traditional intermediaries.