Siloed Borrowing

Siloed Borrowing is a specialized feature designed to accommodate assets with potentially volatile or manipulable oracles, such as illiquid Uni V3 pairs, by enabling them to be listed as single-borrow assets within our ecosystem. This strategic approach ensures that when an asset is designated as "siloed," it cannot be combined with other assets in the same borrowing position. This measure is crucial for minimizing the risk these assets may pose to the overall stability and solvency of Unleash Protocol.

Siloed Borrowing in Unleash Protocol

Siloed borrowing functions as a safeguard, akin to a firewall, that prevents the potential risks associated with certain assets from affecting the broader protocol. By restricting the borrowability of these assets to standalone positions, Unleash Protocol effectively isolates any adverse impacts, ensuring a more secure lending environment for all participants.