Isolation Mode

Introduction

Isolation mode allows to list new assets as isolated which has a specific debt ceiling. Only certain assets can be borrowed in isolation mode — specifically, approved stablecoins.

Supply Isolated Asset

You can supply an isolated asset just like any other asset, though the default behavior while supplying an Isolated asset may vary based on the conditions below:

• Isolated asset will be enabled as collateral if it is the first asset supplied, OR no other supplied asset is enabled as collateral.

• Isolated asset will NOT be enabled as collateral if any other asset is currently enabled as collateral.

In case the user has other assets enabled as collateral, they can still supply Isolated Asset to capture the yield but won’t be able to use them as collateral

Borrow in Isolated Mode

Borrowers using an isolated asset as collateral can only use that particular asset as collateral and can only borrow assets that are borrowable in isolation mode.

Each user can only enable isolated mode for one kind of token and cannot enable isolated mode for other types of tokens together.

Enter Isolation Mode

If the Isolated Asset is the first asset you provide as collateral or if you have not enabled any other assets as collateral, the Isolation Mode will be automatically activated upon asset supply.

If you have already enabled another asset as collateral, you need to:

1. Make sure you have no outstanding debt.

2. From the "Your Supplies" section, disable non-isolated asset as collateral.

3. And manually enable the Isolated Asset as collateral.

You have now successfully entered Isolation Mode.

Exit Isolation Mode

You can turn off isolation mode by disabling the isolated asset as collateral.

1. Make sure you have no outstanding debt.

2. Click the slider button from the “Your Supplies” section to disable the isolated asset.

3. Confirm the disabled isolation mode setting.

You have now successfully exited Isolation Mode.