Silo Staked SEIPrice

(ISEI)

iSEI is a liquid staking derivative for SEI tokens, developed by the Silo Protocol. It allows SEI holders to participate in staking and earn rewards without locking up their assets, thereby maintaining liquidity. This derivative offers flexibility, enabling users to engage in other decentralized finance (DeFi) activities while still contributing to the security and operations of the underlying SEI network through staking.

When users deposit their SEI tokens on the Silo website for staking, they instantly receive iSEI in return. This immediate issuance of iSEI means that rewards begin to accrue for the user without any delay. The process is designed for straightforward participation, allowing users to quickly convert their staked SEI into a liquid asset that continues to earn staking yields, embodying the core benefit of liquid staking.

Users who choose to unstake their iSEI directly through the Silo protocol's interface should anticipate a waiting period of 21 days for their original SEI tokens to become available. However, for those requiring immediate liquidity, iSEI can be sold or swapped for other assets on various decentralized exchanges. This dual approach provides users with flexibility, allowing them to choose between direct unstaking with a waiting period or instant liquidity through secondary markets.

iSEI’s design integrates staking rewards directly into its value. This means that instead of receiving separate reward distributions, the underlying value of each iSEI token appreciates against SEI over time as rewards accumulate. For example, if you hold 1 iSEI, its redeemable value in SEI increases as staking rewards are generated. This continuously growing conversion rate simplifies the reward collection process, as users benefit from the accrued rewards simply by holding iSEI.

The Silo Protocol charges an annual management fee of 5% on the total staking rewards generated by iSEI. This fee is applied only after the deduction of any validator commissions. Importantly, there are no fees imposed for depositing SEI to mint iSEI, nor are there any charges for withdrawing or unstaking your SEI tokens through the protocol. This transparent fee model aims to maximize the net staking yield for users while covering the operational costs of the liquid staking service.

iSEI is designed with security in mind, building upon the established and audited frameworks of proven liquid staking protocols. The underlying smart contracts have undergone successful security audits, ensuring their robustness and reliability. Furthermore, the Silo Protocol operates on a non-custodial basis. This critical feature means that users always retain full control and ownership of their original SEI tokens, even when they are staked and represented by iSEI. This minimizes counterparty risk and enhances user trust.