> For the complete documentation index, see [llms.txt](https://docs.hatom.com/getting-started/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hatom.com/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators/isolated-pools-facilitator.md).

# Isolated Pools Facilitator

The Isolated Lending Protocol serves as the second Facilitator Pool for USH. It enables users to borrow USH in an over-collateralized manner with zero interest. Users can deposit only one type of collateral token, making the protocol "isolated" by limiting collateral and borrowing options to a single asset type each.

<figure><img src="/files/JWiEHVy977cTSiIMbnEt" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Alice deposits 100 USD worth of EGLD allowing her to borrow up to 70 USD worth of USH at a zero interest rate.
{% endhint %}

### User Action

#### Adding Collateral

In the[ **Isolated Pools**](/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators/isolated-pools-facilitator.md), users can mint USH only by using specific assets as collateral. Initially, the assets available for this [**Facilitator** ](/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators.md)are determined by the Hatom Foundation. However, once full [**Governance**](/getting-started/governance/introduction.md) is implemented, HTM token holders will have the ability to vote on adding new assets to the [**Facilitator**](/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators.md).

For the initial phase, only two primary assets will be supported: EGLD and wTAO. While the protocol allows users to deposit their liquid-staked derivatives (e.g., sEGLD or swTAO), users will lose both exposure to these derivatives and the ability to earn staking rewards upon deposit. The protocol tracks the collateral in the equivalent value of the native token (EGLD or wTAO) at the time of deposit. This ensures that all collateral is consistently tracked in native units, aligning users' exposure with the value of the native tokens rather than their liquid-staked derivatives.

***

#### &#x20;Scenarios:

1. **User Deposits EGLD or wTAO**:
   * The deposited EGLD or wTAO is staked through the [**Liquid Staking**](/getting-started/hatoms-ecosystem/liquid-staking.md) protocol to receive a [**liquid-staked derivative (LSD)**](/getting-started/hatoms-ecosystem/liquid-staking/liquid-staking-derivatives.md).
   * The LSD is then supplied to the [Lending Protocol'](/getting-started/hatoms-ecosystem/lending-protocol.md)s Money Market.
   * The account’s collateral is tracked in the native token units (EGLD or wTAO).
2. **User Deposits Liquid-Staked Tokens (sEGLD or swTAO)**:

   * The protocol mints HTokens using the deposited [**liquid-staked derivatives** ](/getting-started/hatoms-ecosystem/liquid-staking/liquid-staking-derivatives.md)through the [**Lending Protocol's**](/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators/lending-protocol-facilitator.md) Money Market.
   * The account’s collateral is tracked in the native token units (EGLD or wTAO), equivalent to the value of the LSD at the time of deposit.

   All the rewards generated through the collateral provided by the user are used to incentivize the [**USH Staking Module**](/getting-started/hatoms-ecosystem/hatom-usd/ush-staking-module.md) to offer a real yield passive income&#x20;

#### Removing Collateral

Although a user's collateral is tracked in EGLD units, they cannot immediately withdraw EGLD. Instead, they can choose to receive either HsEGLD or sEGLD. To convert sEGLD to EGLD, they can un-delegate it through [**Liquid Staking** ](/getting-started/hatoms-ecosystem/liquid-staking.md)(subject to the unlock period) or trade it for EGLD on the open market.

When it comes to wTAO, users can withdraw their collateral instantly, as staking for this asset does not involve a cooldown period.

Collateral removal is only allowed if the user maintains compliance with over-collateralization requirements.

#### USH Borrow

The [**Isolated Lending Protoco**](/getting-started/hatoms-ecosystem/hatom-usd/ush-facilitators/isolated-pools-facilitator.md)l, i.e. a facilitator pool, will be able to mint USH whenever there is a request to borrow USH. Of course, this borrow must comply with over-collateralization requirements.

Tracking these borrows is very simple, as there is no accrued interest. In this sense, borrows remain constant.

#### USH Borrow Repayment and Liquidations

A USH borrow repayment, which is also part of a liquidation process, burns all the USH being repaid.