XAI is an over-collateralized stablecoin with a soft peg to the US Dollar. With the approval of SiloDAO, XAI will serve as the second bridge asset alongside ETH in the Silo lending protocol. Instead of borrowing ETH to go from asset A to B, users will be able to collateralize XAI to borrow any token asset in the protocol.
Silo is a non-custodial lending protocol to borrow any crypto-asset with another. Silo features the following characteristics:
- SECURE BY DESIGN: When users deposit in a Silo, they don't share the risk with other tokens in the protocol. Silos can only borrow the bridge asset from each other, keeping the risk isolated to a single Silo.
- EFFICIENT: To concentrate liquidity, each token asset gets one Silo only. With the bridge asset connecting all Silos, liquidity moves fluidly in the protocol, enabling any collateral token to borrow another.
- PERMISSIONLESS: Silo is designed to support any token asset on the chains it operates on. Silos share default collateral factors that can be adjusted on a Silo level at any time.
