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On this page
  • Deposit
  • Borrow
  • Credit and Liquidations
  • Withdraw
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  1. Moonwell Overview
  2. Isolated Markets

Interacting with Isolated Markets

PreviousIsolated MarketsNextUSDC Anywhere

Last updated 9 months ago

Deposit

Users can interact with Morpho's Isolated Markets directly through the . The process is simple and intuitive:

  1. Navigate to the and connect your

  2. Select "" from the top navigation bar

  3. Choose the Isolated market corresponding to the asset you wish to to use as collateral and the asset you wish to borrow. The asset listed first in the Isolated pair is the collateral asset, followed by the borrow asset.

    • For example, if you select Isolated ETH/USDC, you will use ETH as collateral to borrow USDC.

  1. When you're ready, click "Supply" on the preferred market.

  1. Enter the amount you want to deposit using the "Supply" modal and confirm the transaction

  1. After completing the collateral deposit, you are now ready to borrow against the collateral asset.

Borrow

  1. Now that you have supplied collateral, it's time to borrow using this collateral. Click the 'Borrow" tab of the modal.

  1. Enter the amount you want to borrow and confirm the transaction.

  1. Once the transaction has completed, you will have successfully borrowed from the desired market. The borrowed assets will be sent directly to your wallet.

Credit and Liquidations

Each Isolated Market has its own set of risk parameters, including its own Collateral Factor and Credit Limit.

If your Credit Remaining (the value of your collateral) drops below 0% or $0, a liquidation event may be triggered.

You can find your Credit Remaining on the specific market page.

Note that Credit Remaining is exclusive to each Isolated Market and does not affect the Moonwell "Core Markets."

Withdraw

  1. Select "Withdraw" from the modal and specify the amount you wish to withdraw from the market. Confirm the transaction in your wallet and wait for it to complete. Once successful, the specified amount will be have been withdrawn and can be found in your wallet.

Unlike Moonwell "Core Markets", you can always withdraw your supplied collateral if you repay your loan.

Loan Repayment

Although there are no fixed repayment schedules, interest continues to accrue over time. This accrued interest can reduce the borrower's remaining credit, increasing the risk of liquidation. The borrowing rate is influenced by the supply and demand of the underlying asset.

  1. Select "Repay" from the modal and specify the amount you wish to repay of the borrowed asset. To repay all of the borrowed asset, click "MAX." Confirm the transaction in your wallet and wait for it to complete. Once successful, the specified amount will be have been repaid and you can now withdraw the collateral asset from the market.

Learn more about

Navigate to the market you wish to withdraw from. This can be done by visiting the "" or "" page.

Unlike traditional finance, there are no fixed repayment timelines. Borrowers can maintain their loans indefinitely as long as their "" account balance stays above $0 or 0%. If it falls below this threshold, a liquidation process begins, and the borrower's collateral is forfeited to cover the loan.

Navigate to the market for which you would like to repay the borrowed asset. This can be done by visiting the "" or "" page.

🦋
Credit and Liquidations
Markets
Portfolio
Credit Remaining
Markets
Portfolio
Moonwell app
Moonwell app
wallet
Markets
Isolated markets contain the Isolated tag, designating the market type
ETH/USDC Isolated Market
Collateral Factor and Credit Remaining is visible on every Isolated Market page.
Your Portfolio will present you with the option to withdraw under "Open Positions." You will be taken to that market's page to withdraw the collateral asset.
In this example, the ETH token is used. However, you can select other Isolated Markets by using the dropdown menu.
Your Portfolio will present you with the option to repay the borrowed asset under "Open Positions." You will be taken to that market's page to perform the repayment.