Isolation Mode
Last updated
Last updated
Isolation mode allows new assets to be listed as isolated assets, which have a specific debt ceiling. The debt ceiling for an isolated asset is represented as the maximum amount in USD that can be borrowed against the user’s collateral with two decimals of precision.
Borrowers using an isolated collateral can only borrow stablecoins that have been configured to be borrowable in isolation mode.
Entering isolation mode is specific to certain isolated assets. You cannot utilize non-isolated assets as collateral to enter isolation mode. The steps to entering isolation mode are as follows:
From the Liquidity tab select an isolated asset to supply.
After supplying the asset, enable it as a collateral and you will then see an information notification explaining that you are entering into isolation mode.
You can borrow assets once in isolation mode; however, you will only be able to borrow stablecoins configured to be borrowable in isolation mode.
To exit isolation mode, you will need to disable the isolated asset that you have supplied as collateral. This can only be done if you have no outstanding debt.
