Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
In this post, we will cover a newly launched liquid staking protocol for the Sei Network called Silo Staking.
Following the manias around Solana airdrops and Ethereum EigenLayer restaking, there’s new interest shifting to airdrop farmers on Cosmos.
One of the breakout blockchains built on Cosmos, just beginning to launch more DeFi protocols is Sei. Sei is known as the fastest Layer 1 blockchain in the world, allowing for low transaction costs and higher throughput (20k tps).
Since Sei Mainnet launched on August 16, 2023, the biggest story for Sei has been about its price, going from $0.17 up to $0.80, equating to an $8B fully diluted valuation as of this writing.
Many protocols are still being built on Sei and a few have already begun to show promise such as the DEX Astroport, doing over $10M in 24-hour trade volume, Kryptonite offering liquid staking, lending, and borrowing with $1.5M TVL, and now Silo Staking with just under $1M in liquid staked SEI.
Silo Protocol is a pure liquid staking platform that empowers users to optimize and unlock their staked Sei for use across the entire Sei ecosystem. Given the anticipated launch of Sei V2 in early 2024, Silo delivers a timely LST to be used in future DeFi apps built on Sei.
Silo also empowers anyone to participate in the “proof of stake” security of the Sei Network and earn rewards by minting or swapping for iSEI.
Like other LSTs, the iSEI token acts as a receipt showing the ownership of staked SEI that can then be stored, transferred, traded, or used in DeFi (ie collateral for borrowing or in a liquidity provision).
Silo Staking aligns the incentives of DeFi users and the Sei Network. DeFi users can put their funds to work to secure the network and earn staking rewards for it, but without the opportunity cost of locking up their funds.
Silo Staking has not launched a token or made any mention of a points program but given the design of the protocol and those builders who have come before it, I would assume they will launch a native token in the future. The best way to get a jump start on a Silo Staking airdrop is to stake some SEI, keeping in mind it’s very high risk depositing into such a new protocol, without a decentralized governance.
Today, I’ll provide steps to minting iSEI and begin earning 5% in SEI staking rewards, plus future credit towards a probable Silo Staking airdrop.
How to Stake SEI with Silo Staking
Before we get started, please be aware of these risks.
- Smart contract risk in Silo Staking
- Front-end spoof attack on the app frontend
- Slashing risks to the node operators
- An economic design exploit in the design of Silo
- Colluding signers on any multisig controlling contract upgrades
- First, I go to the Silo dApp and connect my Cosmos (Sei) wallet.
- Then, I specify how much SEI to stake and click Submit.
That’s it! Now I’m staking SEI, contributing to the security of Sei, and possibly earning a future Silo airdrop.
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
