Isolation Mode
Isolation mode allows Sky Governance to list new assets as isolated assets, which have a specific debt ceiling and can only be used as the sole collateral for a position. Wrapped Ether.fi ETH (weETH) is an example of an isolated asset in SparkLend.
The debt ceiling for an isolated asset is represented as the maximum amount in USD that can be borrowed against the user’s collateral.
How can I enter isolation mode?
The steps to entering isolation mode are as follows:
From the My portfolio page select an isolated asset to Deposit.
You will then see an information notification explaining that you are entering into isolation mode.
Once you have successfully entered isolation mode, you will then be able to deposit an isolated asset.
You can also borrow assets once in isolation mode; however, you will only be able to borrow stablecoins up to a certain debt ceiling.
How can I exit isolation mode?
To exit isolation mode, you will need to disable the collateralized isolated asset that you have supplied.
On the My portfolio page in the Deposit section, click the Collateral toggle to disable the isolated asset.
Confirm the disabled isolation mode setting. You have now successfully exited isolation mode.
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