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Isolation Mode

Isolation mode allows to list new assets as Isolated which has a specific debt ceiling and can be only used to borrow stablecoins that have been permitted, by Maker Governance, to be borrowable in isolation mode.

Supply Isolated Asset

A user can supply an Isolated Asset just like any other asset using supply() method in pool.sol, though, the default behaviour while supplying an Isolated Asset may vary based on below conditions

Use as CollateralCondition
Enabled- if Isolated Asset is the first asset supplied by the userOR- no other supplied asset is enabled as collateral by the user
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 be done only if the user has no outstanding debt. A user must use repay() method in Pool.sol to pay off all of their debt before exiting Isolation Mode