Dear @SiloFinance team,
I am speaking on behalf of the community and as someone who is personally affected.
Following the xUSD depeg, approximately $60M in user funds remain frozen in Silo's xUSD and xBTC markets.
@StreamDefi is the primary bad actor, but Silo enabled them by:
• Allowing concentration risk
• Relying on Stream's oracle
• Insufficient due diligence on managed vaults
Legal action is necessary. Silo should join forces with Euler, Morpho, and other affected protocols to maximize pressure on Stream
While I appreciate the transparency report, critical questions remain unanswered:
1. How did Stream Finance become the dominant borrower without triggering concentration risk limits?
2. What is the relationship between Silo and @VarlamoreCap, which managed vaults heavily exposed to xUSD?
3. Why did Silo rely on Stream's self-reported NAV for oracle feeds without independent verification?
4. Why did you hide affected markets? It is terrible optics – it looks like Silo is trying to sweep the problem under the rug while promoting new products
I urge Silo to:
1. Restore UI visibility for affected markets with clear risk warnings (hiding them erodes trust)
2. Propose DAO vote on bad debt socialization options:
> Protocol treasury bailout (if feasible)
> SILO token dilution to compensate affected users
> Haircut distribution across all Silo users vs. isolated to affected markets
3. Implement structural reforms: concentration limits, independent oracles, vault management decentralization
4. Announce a schedule of regular legal action updates to keep the affected users well informed.
The DeFi community deserves to know:
• Was Varlamore's relationship with Silo disclosed to users?
• Were risk warnings provided for xUSD's leveraged nature?
��� What safeguards failed, and how will they be fixed?
I publish this message because you never answered to my dm.
Transparency and decisive action are essential to restore trust. The longer funds remain frozen while new products are promoted, the more it appears users are being deprioritized.
Look forward to your response and concrete action plan.
@kris You have scammed the community.
Trust is gone.
Re burn 70 billions cro and beg pardon.
Or resign and leave this company.
You are destroying #crypto.com
@kris You control the vote.
Let vote the card voters on app
You are scamming us.
You want to finace the grow with our money.
Hope you will end in prison like sbf.
No more trust.
You have just kill the project.
Bnb, btg is the way. Buy back and burn, not print like fed.
@kris Just stop spending like the fed customers money for sponsorships.
Buy back and burn.
It's a long time you take money from users and give away for grow and marketing.
Now is time to stop.
You are destroying the community.
Give back to holders!!