Silo Finance creates permissionless and risk-isolated lending markets on Arbitrum and two different deployments on Ethereum. Silo uses an isolated-pool approach where every token asset has its own lending market and is paired against the predetermined bridge assets. Lenders deposit funds into an isolated lending market consisting of Token ABC and the bridge assets only. If Token XYZ experiences an exploit, Token ABC lenders will not be affected since the risk is isolated to the Token XYZ market