Isolation Mode

Concept

Isolation Mode enables new assets to be listed with controlled risk.

When a borrower uses an isolated asset as collateral, they cannot simultaneously use other assets as collateral, but can still supply them to earn yield.

In this mode, borrowing is restricted to select stablecoins approved by governance, with borrowing capped by a defined debt ceiling to ensure protocol stability.

Best Practise

If you’re supplying an isolated asset, consider creating a new account to avoid limiting your overall borrowing power. This approach helps maintain capital efficiency across your positions. Learn how to open a sub-account →