# Isolated Market Pools

An asset introduced to a Lending & Borrowing platform means a borrower can borrow any available asset in the pool using the introduced asset as collateral. So introducing a new asset exposes the entire protocol liquidity to insolvency risk. Hence, the platform has to be very picky and exclusive when introducing a new asset. This means a protocol is missing out on a huge chunk of liquidity. This also is against the principle of inclusivity and the widespread adoption of DeFi. To mitigate this problem, Cedro utilizes Isolated Market Pools.&#x20;

With this, an asset that is considered risky can be introduced into an Isolated Market Pool. Each of such pools is comprised of a few risky assets and a few stable assets which are completely separate from the main market. An Isolated asset will have a hard borrow limit, and the user will be able to borrow only the stable assets inside the pool against the collateralized isolated asset. This will make sure that newer assets can be included in the pool without exposing the entire market to insolvency risk. This can also be a lucrative option for lenders since the interest rates for such pools are usually high because of the risk associated with them. HIGH RISK HIGH REWARD.


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