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Isolation Mode

This page talks about how the borrowing and lending works with Isolation mode. Unlock Precision Borrowing with Isolation Mode and Borrow with Confidence at ZeroLend.

What is Isolation Mode?

Isolation Mode grants you the ability to list new assets as isolated assets, each with a designated debt ceiling. This feature is specifically designed for approved stablecoins, enabling borrowers to access these assets with precision and predictability.
Approved Stablecoins: Isolation Mode is exclusively available for certain approved stablecoins. These stable assets have undergone a rigorous approval process to ensure their reliability and stability.
Debt Ceiling Precision: In Isolation Mode, each isolated asset comes with a predefined debt ceiling. The debt ceiling represents the maximum borrowing limit in USD, calculated with two decimal places of precision. This means you can borrow these assets up to the exact specified limit.

Frequently Asked Questions (FAQs)

  • How Can I Enter Isolation Mode? Entering Isolation Mode is a straightforward process, but it's specific to certain isolated assets that have been voted on and approved by our platform. To access Isolation Mode, follow these steps:
    • From the dashboard, select an isolated asset that you want to supply.
    • You'll receive an information notification explaining that you are entering Isolation Mode.
    • Once you've successfully entered Isolation Mode, you can proceed to supply the isolated asset.
    • Borrowing assets is also possible while in Isolation Mode. However, you can only borrow stablecoins, and your borrowing limit is subject to the predefined debt ceiling.
  • How Can I Exit Isolation Mode? Exiting Isolation Mode is just as easy as entering it. To exit Isolation Mode, you need to disable the collateralized isolated asset you supplied. Follow these steps:
    • Click the slider button from the "Your Supplies" section to disable the isolated asset.
    • Confirm the disabled Isolation Mode setting.
    • Congratulations, you've successfully exited Isolation Mode.
  • How Does Isolation Mode Affect My Borrowing Power? When you enter Isolation Mode, your borrowing options become focused on stablecoins. In the "Assets to Borrow" section, you'll find a list of available stablecoins that you can borrow. Each isolated asset comes with a specific debt ceiling, which is the maximum amount you can borrow against your collateral. You can easily view the debt ceiling for each asset on the reserves page.