# Isolated Pools

**Overview**

Isolated Pools are made up of separate collections of assets with tailored risk management configurations. This design offers users broader opportunities to manage risk and allocate assets to earn yield. Moreover, it prevents hypothetical failures from affecting the liquidity of the entire protocol as they are confined to isolated markets. 

Isolated Pools also offer custom rewards for each market in the pool, incentivizing users accordingly.

#### User Actions <a href="#user-actions" id="user-actions"></a>

Users can perform the following actions on any market in a pool:

1. **Deposit**: Users can deposit an asset, receiving seTokens that correspond to the liquidity deposited. These sTokens accrue interest until they are burned on redeem or liquidated.
2. **Borrow**: Users can borrow assets, in exchange for locked collateral.
3. **Redeem**: Users can redeem seTokens for the underlying asset based on the exchange rate.
4. **Repay Borrow**: Users can repay the borrowed asset and accrued interest.


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