Isolation Mode

Isolated assets are more volatile assets that have stricter risk management parameters than non-isolated assets. Users can only enable one isolated asset as collateral at any given time. Isolated assets have a set debt ceiling* and can be only used to borrow select assets that have been configured to be borrowable in isolation mode.

*Debt Ceiling for an isolated asset is the maximum amount in USD that can be borrowed against the collateral.

Supply Isolated Asset

An isolated asset can be supplied like any other asset, however the default behaviour while supplying an isolated asset will depend on the below conditions

Use as CollateralCondition


- if Isolated Asset is the first asset supplied by the user OR - no other supplied asset is enabled as collateral by the user


if any other asset is currently enabled as collateral

In case the user has other assets enabled as collateral, they can still supply isolated assets to capture potential yield but wonโ€™t be able to use it 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 for which the get-borroweable-isolated read-only call from pool-reserve-data returns true.

Borrower in Isolation Mode cannot enable any other assets including the other isolated assets as collateral.

Exit Isolation Mode

Users can turn off isolation mode by disabling the isolated asset as collateral. This can be done only if the user has no outstanding debt.

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