Isolated Pools (XYK)

In addition to the Omnipool, Hydration offers Isolated Pools, which are separate pools that contain specific collections of assets. Each Isolated Pool has its own unique risk management configurations, such as liquidity caps, fee structures, and asset composition.

This design differs from the Omnipool, where all assets are combined into a single pool with uniform risk management settings.

Isolated Pools offer users broader opportunities to manage risk and allocate assets to earn yield. Moreover, their existence helps protect the Omnipool by preventing hypothetical failures from affecting the liquidity of the entire protocol.