APRs for supplying on @SiloFinance are extremely high. People are asking how it’s possible. I’ll explain. After reading this, you’ll clearly understand why, during risk-on market sentiment, Silo is the best lending market for supplying your stablecoins. The reason is simple: the markets are called silos for a reason. They are programmable and risk-isolated. That means when you provide liquidity, you’re always supplying to a single, isolated vault, not across the entire app on that chain. What’s the benefit of isolated vaults? An exploit, misconfiguration, or failed liquidation in one market doesn’t impact the others. This level of protection isn’t possible in shared-pool lending markets, where all lenders take on shared risk. In a risk-on market, people often use leverage through lending protocols. Vault utilization can go very high, which means borrowers are paying more interest to lenders. But they’re fine with it, because in bull markets, they expect to make well over 30% annually on what they borrow. Since supplied liquidity stays within each isolated pool, you should choose a pool for your stablecoins where the paired token has enough liquidity and borrowing demand. Many of these vaults have higher utilization during risk-on markets, so you benefit from increased borrowing costs. Why do people supply tokens and borrow stablecoins against them? Simple. They’re betting on future upside. They don’t want to sell their assets but still want to put borrowed stablecoins to work. If this sounds complex, just deposit into Managed Vaults. These vaults are managed by external teams (managers) who allocate liquidity to their whitelisted markets. While users retain control over their deposits, they must trust managers to oversee some core vault functions like adding new markets, increasing supply caps, and more. Let me know if you like this kind of content. I can share more in the future on money market strategies and how to maximize your returns.