Cross & Isolated Modes
Last updated
Last updated
Kamino Lend now supports two position modes: Isolated Mode and Cross Mode. The introduction of loan modes enables a more tailored borrowing experience depending on a borrower's desired loan composition.
Cross Mode is the default position mode in Kamino Lend. In Cross Mode, a user can have multiple collateral assets and debt assets in the same position. This allows a user to deploy multiple assets as collateral in a single position, and similarly enables them to borrow multiple assets in a position.
Cross Mode positions will typically have less overall borrow capacity and more conservative risk parameters than Isolated positions.
Isolated Mode is a new feature that allows customized risk configurations for specific collateral/debt combinations in a single market. Isolated Mode is available when a borrower wants to maintain a position with a single collateral, and single debt asset.
In Isolated Mode a borrower can access more borrow capacity, as well as less restrictive risk parameters. Isolated Mode will be available for certain asset combinations.
Cross: Users wants to Cross Collateralize (Multiply collateral/debt assets in the same loan)
Isolated: User wants to use a single collateral asset and borrow only one assets—they want deeper liquidity and a higher LTV
Users will now see a Position Mode toggle in the UI.
Loans will always be in Cross Mode by default, and in most cases Cross Mode will be the only mode available.
Isolated Mode will only be available when a user wants to borrow an eligible debt asset against an eligible collateral asset. Once a user toggles into Isolated Mode, they instantly have access to more liquidity and/or a higher LTV.
If a user is in Isolated Mode and wants to toggle into Cross Mode they can do so freely, as long as there is enough liquidity in Cross Mode to support their position. If there is not enough liquidity, Cross Mode will be unavailable.
If a user is in Cross Mode and wants to toggle into Isolated Mode, they need to have an eligible collateral/debt combination.
Isolated Mode is in Beta, and limited pairs are currently available. More pairs will be added over time
Available Pairs:
SOL/PYUSD (Main Market)
USDC/USDT (Main Market)
LST/SOL Pairs (Main Market)
