Managed Vaults
Deployed and managed by third-parties, Silo Vaults are ERC-4626 contracts that receive user deposits and direct them into Silo's isolated lending markets. Anyone can deploy a Silo Vault, and any wallet user can deposit into a vault in a non-custodial manner. Vault managers discretionarily allocate deposits to optimize yield for depositors while minimizing risk exposure. In exchange for their services, vault managers charge a performance fee, a percentage of the interest earned by the vault.
Vaults inherit the risk-isolated design of the Silo Protocol at the market level but may have diversified yield and counterparty exposure depending on their markets and fund allocations.
There are three concepts to Silo Vaults: