Isolation Mode in the Altcoin Market
Isolation mode allows for the creation of isolated pools, each with distinct asset collections that have tailored risk management settings. This structure not only facilitates targeted risk management but also confines potential disruptions to individual markets, protecting the overall protocol's liquidity.
Entering Isolation Mode
Isolation mode is accessible for specific assets approved by Yei Governance. Here’s how to enter:
Select an Isolated Asset: From the dashboard, choose an isolated asset to supply.
Notification: A prompt will inform you that you are entering isolation mode.
Supply Assets: Supply the chosen isolated asset into the pool.
Borrow Assets: Once in isolation mode, borrow stablecoins designated for this mode by Yei Governance.
Exiting Isolation Mode
To exit isolation mode:
Disable Isolated Asset: In the “Your supplies” section, toggle the slider to disable the asset.
Confirm: Click “Disable Asset as collateral” and confirm the Gas Fee to successfully exit isolation mode.
Impact on Borrowing Power
In isolation mode, your borrowing options are limited to stablecoins. This mode imposes a specific debt ceiling per asset, which is displayed on each asset’s reserve page.
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