> For the complete documentation index, see [llms.txt](https://learn.elara.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.elara.finance/elara-v1-zircuit-mainnet/about-elara-v1/dual-pool-architecture.md).

# Dual-pool architecture

ElaraLend introduces a groundbreaking Dual-pool market architecture that revolutionizes DeFi lending. This architecture consists of a main pool and multiple satellite pools, each serving distinct purposes while working in harmony to maximize efficiency and minimize risk.

In the main pool, assets serve dual functions as both collateral and loan assets. Conversely, satellite pools are tailored for specific use cases, supporting LSTs as collateral and ETH as the loan asset. This specialization allows for optimized management of different asset types.

<figure><img src="/files/frLP25zqoF5Zx0H7RRpn" alt=""><figcaption></figcaption></figure>

## Key Features:

1. <mark style="color:purple;">Risk isolation by design</mark>: The dual-pool structure inherently isolates risks between the main pool and satellite pools. This segregation ensures that potential issues in satellite pools don't compromise the stability of the main pool, enhancing overall system security.
2. <mark style="color:purple;">Optimized for LRT/LST collateralization</mark>: Satellite pools are specifically designed to effectively utilize Liquid Staking Tokens (LSTs) as collateral. This specialized approach allows for higher efficiency in managing these increasingly popular DeFi assets.
3. <mark style="color:purple;">Seamless cross-pool borrowing</mark>: ElaraLend enables sophisticated cross-pool borrowing operations. Users can, for instance, deposit LSTs like weETH as collateral in a satellite pool and borrow USDC from the main pool. Behind the scenes, ElaraLend automatically manages the multi-step process: borrowing ETH against the LST in the satellite pool, then using this ETH as collateral in the main pool to borrow USDC.


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