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Isolation Mode

Isolation mode allows new assets to be listed as Isolated. These assets have a specific debt ceiling and can only be used to borrow stablecoins that have been permitted by Sky Governance to be borrowable in isolation mode.

The on-chain encoding uses DEBT_CEILING_DECIMALS = 2, so a ceiling of $1,000 is stored as 100_000.

Supply Isolated Asset

A user can supply an Isolated Asset just like any other asset using the supply() method in Pool.sol. The default behaviour depends on the following conditions:

Use as CollateralCondition
EnabledEnabled automatically only when msg.sender holds ISOLATED_COLLATERAL_SUPPLIER_ROLE on ACLManager. Otherwise the user can call setUserUseReserveAsCollateral after supplying, provided no other collateral is enabled.
DisabledIf any other asset is currently enabled as collateral.

Borrow in Isolated Mode

Borrowers using an Isolated Asset as collateral can only use that particular asset as collateral and can only borrow assets that are borrowable in isolation mode, i.e. have BORROWABLE_IN_ISOLATION_MASK bit set in reserve configuration.

Exit Isolation Mode

Users can turn off isolation mode by disabling the isolated asset as collateral. This can only be done if the user has no outstanding debt. A user must use the repay() method in Pool.sol to pay off all debt before exiting Isolation Mode.