Getting Started With Isolated Markets
Isolated Markets work much like Core Markets, with one key difference: you choose specific asset pairs instead of single-asset markets, and each pair is its own independent position. This guide walks you through supplying, borrowing, and managing those positions.
Supplying to an Isolated Market
Step 1: Navigate to an isolated market
Go to the Markets page.
Find a market tagged "Isolated."
Click the market you want to use.
Step 2: Supply your collateral
Select the supply amount.
Click Approve to give Moonwell permission to use your tokens.
Confirm the approval in your wallet.
Click Supply and confirm the transaction.
Your collateral is now in the market.
Your supplied assets will earn the market's supply APY.
Borrowing From an Isolated Market
Important: You must have collateral supplied to the same isolated market before borrowing.
Step 1: Check your collateral
Make sure you've supplied the collateral asset to the market.
Review your collateral value and borrowing power.
Step 2: Borrow assets
Enter the amount of the loan asset you want to borrow.
Check that your collateral covers the amount, respecting the LLTV.
Click Borrow.
Confirm the transaction in your wallet.
You'll now owe the borrow APY on the borrowed amount. Interest accrues each block.
Tip: Borrow below the LLTV, not right up to it. A buffer protects you when prices move.
Each Market Is Separate
Remember: an isolated market position is completely independent from other markets.
Your ETH/USDC position is separate from your DAI/USDT position.
Collateral in one market can only be used to borrow from that same market.
If you want exposure to multiple pairs, you'll have multiple separate positions.
Withdrawing Your Supply
Step 1: Go to your position
Find the isolated market where you supplied assets.
Check your current supply balance.
Step 2: Withdraw
Enter the amount you want to withdraw.
Make sure you won't fall below your LLTV (liquidation threshold).
Click Withdraw.
Confirm in your wallet.
Your tokens are returned to your wallet.
Repaying Your Borrowing
Step 1: Review your debt
Find the isolated market where you borrowed.
Check your current borrow balance and interest accrued.
Step 2: Repay
Enter the amount you want to repay, or repay in full.
Click Repay.
Confirm the transaction.
Your debt decreases immediately.
Key Differences From Core Markets
You choose the specific pair you want.
Each pair is its own separate position.
Liquidation parameters (LLTV) may differ from Core Markets.
Risk is isolated to that specific pair.
You manage collateral and loans within that single market.
Managing Your Liquidation Risk
Always monitor your position:
Know your LLTV threshold for the market you're using.
Keep collateral value well above your borrowed amount.
Watch for price movements that could affect your collateral value.
Consider keeping extra collateral as a safety buffer.
Pro Tip
Start with smaller amounts while you get familiar with isolated markets. Once you understand how they work, you can scale up to larger positions.
Frequently Asked Questions
Why can't I use my Core Market collateral here?
Isolated markets are self-contained. Collateral and loans stay within one market, separate from Core Markets and from other isolated markets.
What happens if I hit the LLTV?
Crossing the LLTV makes your position eligible for liquidation. Repay or add collateral before that happens.
Can I have several isolated positions at once?
Yes. Each pair is managed independently, so you can hold as many as you like, each with its own collateral and loan.