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F.A.Q.

Token Overview#

  • Official website: https://sil.finance
  • Ticker: SIL
  • Token Type:
    • ERC-20
    • BEP-20
    • KIP-20
  • Contract address: 0x133Bb423d9248a336D2b3086b8F44A7DbFF3a13C(ERC-20/BEP-20/KIP-20)
  • Total Circulation: 30,000

What is the $SIL Token?#

SIL Token is our native governance token. All tokens are minted, no pre-allocation.

What is the Reason for launching SIL.Finance?#

Defi is evolving surprisingly fast during the recent years, one of the biggest pitfalls introduced by AMM swapping is the Impermanent Loss/Gain, an inevitable learning curve that most users will face while providing liquidity to any automated market maker (AMM) swaps.

In addition, standing from the client’s viewpoint, in most cases single token yielding profit is quite low, the LP mining’s profit is relatively higher since trading liquidity is enhanced. Sometimes users only hold one type of token, and those users usually go to lending protocols to borrow the counterparty token, which will increase the risk of liquidation, lower capital utilization (the lending rate commonly marked to 70% or lower).

SIL tries to resolve these two major pain points of Impermanent Loss and Capital Utilization. By Sharing the Volatility(Yield) or Individual Volatility (Hedging), SIL is equivalent to skipping the lending at the same time avoiding the two problems mentioned above. To minimize the volatility bias, SIL introduced a smart contract-based matching engine that provides an additional solution for current LP miners, only a single-side token is required.

What's SIL's business model? While SIL profiting will it hurt user?#

Current SIL does not have any means to generate profit after the pan-SIL transaction fee is removed. The team made this tool for the community for hobby now. Only SIL's share will make the team profit somehow after a year's operation (delayed vesting).

Who is behind SIL.Finance?#

The SIL team is composed of a group of enthusiastic developers, financial professionals and community managers, in the form of an anonymous DAO.

Is SIL.Finance Safe?#

Safe is a relative term, if you want some solid stuff, refer to Audits.

SIL is open sourced, check Opensource.

The SIL bootstrap team has no interests to be evil, there is no Don't.

Where is the SIL white paper?#

Refer to whitepaper.

Where can I trade $SIL?#

Current on Pancakeswap.

What exchanges can SIL be trade on?#

None at the moment, but maybe someday.

How many SIL tokens are in circulation? Why is the total amount of SIL displayed on the chain greater than 30,000 total amount?#

The Total Circulation of SIL token will always be capped at: 30,000 SIL throughout all chains.

The equation is (regardless of any bridge-only SIL tokens):

(A-CHAIN’s SIL) + (B-CHAIN’s SIL) + … + (Z-CHAIN’s SIL) = 30,000

Due to SIL’s coverage of many chains, one may find that SIL tokens have way more than 30,000 $SIL, and it’s all due to the cross-chain implementation tradeoffs.

The following list will be updated if more chains are integrated:

  • PolyBridge (ETH <-> BSC) has increased the total supply of SIL for 30,000 (mirrored/pre-mined total possible SIL tokens on Ethereum which is 30,000 $SIL(but the real number will be subject to the equation of 30,000 $SIL throughout all chains, and those mirrored tokens can only be circulated/locked inside PolyBridge)

    • PloyBridge Address:

      0x2f7ac9436ba4b548f9582af91ca1ef02cd2f1f03

    • Reserved PloyBridge Liquidity Address(proactively anti-bridge-hack):

      0x91860094ed2aa39d3e8b39142c2cae31b5e50d1a

Currently SIL is minted on BSC ONLY at a daily emitting speed of 148.23529411764707 $SIL (usually 1 block per 3 seconds).

So if there are no further chain integrations (highly impossible, but just as an example), the SIL tokens minted on BSC will increase until:

(BSC’s $SIL) + (ETH’s $SIL) = 30,000 (regardless of any bridge-only $SIL tokens).

For example, if there is further chain integration with Polygon, then the equation would be:

(POLYGON’S $SIL) + (BSC’s $SIL) + (ETH’s $SIL) = 30,000 (regardless of any bridge-only SIL tokens).

The SIL bootstrap team will make sure this equation is realized at all times.

What is the SIL token contract address?#

ERC-20 / BEP-20 Contract address:

0x133Bb423d9248a336D2b3086b8F44A7DbFF3a13C

What is the distribution details of SIL tokens?#

Refer to this.

Token Utilities?#

Refer to this.

Is there a transaction fee on SIL's product?#

There is no transaction fee on SIL's product, although users has to pay the blockchain transaction fee depends on which blockchain one is using.

What's the formula for the hedging model? Will the hedge go to zero?#

Based on AMM's constant K equation:

  • Impermanent Loss/Gain Rate
    entry priceexit price\sqrt{\frac{\textit{entry price}}{\textit{exit price}}}
  • Impermanent Loss/Gain
    amount×entry priceexit priceamount \times \sqrt{\frac{\textit{entry price}}{\textit{exit price}}}

Note:

  • When exit price<entry price\textit{exit price} < \textit{entry price}, token price decreased, user owns more tokens
  • When exit price>entry price\textit{exit price} > \textit{entry price}, token price increased, user owns lesser tokens

Based on how Uniswap’s AMM curve works and the user's entry/exit price, the token price shall not go to zero or the project is dead which is different.

How do I query my principal return in the hedge mode?#

Principal return comes from intermediate token gain of composed LP with auto-compound, without hedge P/L calculated in.

LP composition match rate is shared between all users in the pool(how much percentage of one’s token is really composed depends on the utilization rate of one’s side of the pool).

user-token-utilization=user-token-amount×pool-utilization-rate-of-user-token\textit{user-token-utilization} = \textit{user-token-amount} \times \textit{pool-utilization-rate-of-user-token}

Can mining proft make up for impermanent loss?#

In the early stage most mining pairs are composed of mainstream tokens or stablecoins, in this case there won’t be much principal loss when compared to mining gain. But in situations like one-way price change, e.g. the price of some token gets higher and higher for a long time without serious correction, the mining gain may not remedy the principal token loss.

Why is the SIL principal mining yield so low?#

In the early stage most mining pairs are composed of mainstream tokens or stablecoins(the SIL bootstrap team select swap-pairs based on TVL, and must have ChainLink price feed), itself doesn’t have the best APY on underlying farms, plus SIL can’t extract swapping fee gain from underlying swaps(missing data) and the team can’t add arbitrary fee gain to the total ROI, so this part is just missing.

In a later stage SIL will open governance and let the community decide which swap-pair should be listed on sil.finance, even without price feed. Be cautious, higher yield may in the same reflects higher risks.

Let's take CAKE/BNB for example, compare the ROIs on various platforms(timestamp: 8th, July, 15:00 UTC):

ProductShowed ROISelf ROIIntermediate ROISwap Fee
Pancake Farm55.20% (Total)49.48% ($CAKE APR)N/A5.7%
Bunny72.77% (Total)23.01% ($BUNNY APR)44.74% ($CAKE APY)5.01%
SIL57.90% (Principal ONLY)have but not included,
add "SIL Token ROI" for yourself
57.9% ($CAKE APY)same as Pancake,
but not included

You may just have compare SIL's Principal ROI to other platform's Total ROI, for the difference of APR vs APY, APR doesn't include auto-compounding which APY do.

Is there no return if the pledged token is not matched?#

The queued token still has SIL mining gain, but does not have Principal ROI since it’s not composed into LP which can't generate intermediate ROI, in the meanwhile it also doesn’t bear Impermanent Loss/Gain.

Where can I see SIL's Buyback and Burn? Is it like sending tokens to a black hole address?#

The SIL bootstrap team removed sil.finance platform wide transaction fees which were advised by the SIL community, so there is no burning mechanism anymore. But the buyback is still there, check here for Buyback.

What's the Sil Bar's yield?#

The SIL Bar is a transitional product of early BSC deployment, it’s deprecated for the long term. See where the original SIL Bar’s profit source goes at here(check Buyback).

Is SIL’s APY accurate? Why there is not so much gain after I withdraw ?#

SIL Token APR is accurate, as APR is calculated from the at-the-moment price of $SIL token.

The principal APY is near accurate, affecting factors: Before 0.5% pan-SIL transaction fee was removed, the transaction fee should impact the gain for quite a bit. When a user enters a pool, SIL contract invokes a corresponding withdrawal call followed by a deposit call on the underlying farm. When a user exits, verse-versa. In Yield mode, there is an extra Impermanent Loss Mitigation action that happens if the pool assets are unaligned, which basically is two swap transactions in the underlying swap pool, so two transaction fees were burned.

Why am I getting failing transactions?#

Unfortunately this seems to be a common issue recently. Try increasing on-chain gas by 5 GWEI. When this happens, it is probably happening on PancakeSwap (and other projects as well), and it is generally fine if you use 18-20 GWEI.

How to use SIL's NFT?#

The use case of SIL’s NFT is still under development.

Will SIL’s rules change randomly, like before?#

Previously the SIL’s rules are changing because the team is exploring runtime factors of the product, making mistakes in the middle, but we fix fast.

When Governance is online, the SIL product features will be governed by the SIPs.