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Oracles

Every asset in a lending market relies on an oracle—an external data source that provides up-to-date prices onchain.

These prices are critical, as they determine:

  • Borrowing power
  • Loan-to-value (LTV)
  • Liquidation conditions

Oracle data feeds directly into core protocol modules, including borrowing parameters and liquidation logic.

How Oracles Are Used​

Each token in a market can use up to two oracle configurations:

  • One for borrowing power (mLTV)
  • One for solvency (liquidation thresholds)

This separation allows markets to:

  • Be more capital efficient
  • Maintain conservative solvency guarantees

Oracle Types​

Silo supports multiple oracle pricing methodologies depending on the asset:

Market Price Oracles Aggregate prices across exchanges to produce a real-time market value.

Fundamental Oracles Price assets based on their underlying value rather than market price. Example: wstETH priced relative to ETH via its redemption ratio.

Reserve-Based Oracles Price assets based on redeemable reserves. Example: tBTC priced 1:1 with BTC based on backing.

Oracle Providers​

Silo is oracle-agnostic.

Markets can integrate any oracle, and the protocol provides adapters for:

  • Chainlink
  • Redstone
  • Pyth
  • DIA
  • ERC-4626 (vault-based pricing)
  • Other custom implementations

Transparency & Risk Visibility​

Silo provides a *omprehensive, real-time overview of all oracle configurations used in each market.

Users can inspect:

  • Price sources for collateral and debt assets
  • Oracle types and methodology
  • Referenced contracts and feeds

This information is available directly in the Risk section of each market:

Oracles

Disclaimer

Oracles are third-party systems that operate independently of the Silo Protocol.

  • Silo does not control oracle providers or their data sources
  • Oracle configurations are defined at market deployment and may be immutable
  • The protocol is not responsible for inaccuracies, delays, or failures in oracle price reporting

Users should review oracle configurations carefully and understand the associated risks before participating in a market.