Isolation Mode

We understand the significance of stability and security in such an environment and introduced the "Isolation Mode." This feature, much like its name implies, seeks to insulate and protect assets and users from potential market upheavals.

Core Mechanism

Asset Segregation:
  • The Isolation Mode allows for the partitioning of specific assets within Mooncake Finance's ecosystem. These could be new assets with limited historical data or assets deemed volatile based on certain market indicators.
  • By separating these assets, Mooncake Finance ensures that potential instabilities in one asset don't cascade to affect others.
Trigger Conditions:
  • The mode isn't always active but can be triggered under certain predefined conditions. These can include extreme price fluctuations in a short time, anomalies in trading volumes, or external market events.
  • Automated monitors within the platform continuously watch for such trigger events, ensuring the system responds in real-time.

User Impact and Benefits

  • Users can rest assured knowing that their investments in more stable assets remain unaffected, even if another asset in the ecosystem faces volatility.
  • Whenever the Isolation Mode is activated for a particular asset, all stakeholders receive immediate notifications, ensuring everyone is kept in the loop.
  • Despite the protective measures, users retain the freedom to transact with isolated assets. However, they're provided with additional data and prompts, ensuring they're making informed decisions.

Operational Dynamics

Temporary Nature:
  • The Isolation Mode isn't permanent. Once the triggering conditions subside, and the asset regains stability, it's reintegrated into the main ecosystem.
  • Periodic reviews are conducted on isolated assets to assess their market behavior and decide on their status.
Risk Management:
  • The mode synergizes with other risk management tools within Mooncake Finance. It serves as an initial protective barrier, while other systems might execute more complex strategies, like rebalancing, to ensure overall platform health.