Isolation mode allows Governance to list new assets as isolated assets with a specific debt ceiling. Only certain assets can be borrowed in isolation mode specifically, approved stablecoins.
The debt ceiling for an isolated asset is the maximum amount in USD that can be borrowed against the user’s collateral with two decimals of precision.
Entering isolation mode is specific to certain isolated assets voted on and approved by Governance. You cannot utilize non-isolated assets as collateral to enter isolation mode. The steps to entering isolation mode are as follows:
- 1.From the dashboard, select an isolated asset to supply.
- 2.You will then see an information notification explaining that you are entering isolation mode.
- 3.Once you have successfully entered isolation mode, you can supply an isolated asset.
- 4.You can also borrow assets once in isolation mode; however, you will only be able to borrow stablecoins up to a certain debt ceiling.
To exit isolation mode, you will need to disable the collateralized isolated asset you supplied.
- 1.Click the slider button from the “Your Supplies” section to disable the isolated asset.
- 2.Confirm the disabled isolation mode setting. You have now successfully exited isolation mode.
Upon entering isolation mode, you will be limited to borrowing stablecoins. This is further evidenced under the “Assets to Borrow” section, where you will see the available stablecoins listed.
Each isolated asset will have a specific debt ceiling, meaning it is only possible to borrow up to the specified debt ceiling amount. The debt ceiling is visible on the reserves page of each asset.