General FAQ

Staking and Unstaking

Q: How long does unstaking take? Users opting to unstake through the Silo interface should anticipate a 21 day waiting period to receive their iSEI. For immediate liquidity without withdrawal fees, we recommend selling iSEI on a DEX/AMM (*first DEX pools will be launched in the weeks following launch). Our FAQ will soon link to DEXs that support iSEI pairs.

For substantial transactions, it's advisable to verify the slippage on the DEX. The Silo website facilitates direct unstaking with no slippage.

Q: How long does staking take? Depositors instantly receive iSEI on the Silo website after staking, with immediate rewards accrual.

Q: If I'm already staking, do I need to unbond in order to switch over to you or can I just switch validators? Unfortunately yes, in the current schema you must exclusively use unstaked Sei to mint iSEI.

Rewards

Q: How do I collect my rewards? The token's rewards accumulates in its price rather than through ongoing distributions. At launch, 1 iSEI equals 1 SEI. As rewards accrue, iSEI's value appreciates compared to SEI (e.g., 1.05 SEI per iSEI). This price appreciation ensures all iSEI holders receive rewards, regardless of how the token is stored.

Q: What are staking rewards? Validators receive new SEI issuance for voting on new blocks, distributed with every block (aka slightly faster than ~1x / second). Validators pass this issuance (or inflation) to their stakers, deducting a commission.

Delegation Criteria

Q: Are there risks from the Silo Foundation controlling a large amount of network stake? Silo employs a transparent and permissionless delegation formula prioritizing SEI's long-term health. Criteria focus on decentralization and high performance. Stake is delegated only to third parties, excluding superminority validators. Full automation is anticipated a few months post-launch. Transparency serves as a defense against centralization risks, with rankings and delegations visible to all.

Fees

Q: What fees does iSEI collect? iSEI incurs an annual management fee equal to 5% of total rewards, applied to staking revenue post-validator commissions.

iSEI does not impose any sort of fees for deposits or withdrawals.

Q: Are there other fees? What about validators? iSEI deposits SEI with carefully selected validators who charge fees for their operations. Silo maintains optimal rewards by excluding high-fee or poorly performing validators. Silo's fees are calculated post-direct validator commissions.

Security

Q: Is iSEI audited and safe? Building off of the Steak and Eres-Steak liquid staking protocols, iSEI benefits from a proven implementation supporting various network implementations since launch and with successful previous security audits.

Q: Does iSEI control my SEI? iSEI is non-custodial, ensuring holders retain complete control over their SEI at all times.

Airdrops

Q: If there are airdrops for stakers in the future, am I going to miss out by going the liquid staking route? Without any coordination with the project doing the airdrop, the tokens by default would be airdropped to the staking contract, which right now there is not established process for retrieving those tokens (although it is among the contemplated feature buildouts after v1 launches.) The Silo community will need to coordinate with projects to distribute airdrops to iSEI holders. Any airdrop you’re excited about, hit them up and ask them to work with the Silo team to make sure the liquid stakers are included!