Isolated Pools

Isolated Pools represent independent collections of assets, each configured with its own risk management parameters.

This setup offers users enhanced flexibility in managing risk while allocating assets to earn yield.

By containing risks within individual pools, Isolated Pools prevent disruptions in one market from affecting the broader liquidity of the protocol.

Each pool is designed to offer tailored incentives, providing users with market-specific rewards that align with their participation.

Architecture of Isolated Pools

At the core of the Isolated Pools system is the PoolRegistry contract, which functions as a central registry for isolated lending pools.

This contract manages pool creation, registration, and retrieval of pool details through specialized functions.

When a new market is introduced to a lending pool, the PoolRegistry deploys a new interest rate model with an upgradable VToken for that market. Once deployed, the new market must receive approval from its Comptroller before it becomes fully integrated into the system.