What are Isolated Markets?

The majority of Suilend’s Total Value Locked (TVL) currently sits in the main market, which primarily supports blue-chip assets. These assets typically have deep liquidity and reliable oracle feeds, making them well-suited for efficient liquidations and lending activity.

Example of an Isolated Market with sdeUSD and USDC.

Isolated markets, on the other hand, offer greater flexibility when listing assets. They enable Suilend to support assets that may have lower liquidity, higher volatility, or less established oracle support - without adding additional risk to the main market.

Other key advantages of isolated markets include the ability to customize parameters such as interest rate curves and to offer higher Loan-to-Value (LTV) ratios for certain assets.

Over time, some assets may be promoted from isolated markets to the main market, depending on factors such as sufficient liquidity, oracle reliability, trading volume, and overall risk profile. This progression is ultimately determined at the discretion of the Suilend team.

Risks

While isolated markets help contain risk from spreading to the main market, they still carry all of the underlying risks associated with lending protocols, including smart contract risk, oracle risk, liquidation risk, utilitization risk and loss socialization. Learn more about risks.