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Single sided vaults
Risk-off borrowing for the risk adverse.
Interacting with DeFi protocols can be risky, either thanks to volatility of the underlying assets you hold/lock, or other fundamental risks like blockchain outages or exploits. That is not to say that Finterest its not a secure ecosystem - we take security extremely seriously and it's been our first priority since day one - but dealing with and assessing risk is one of the basics of finance. That's why we created single-sided borrowing, (which has less associated risk) in which instead of lending and pooling your assets as collateral, you have your own vault with collateral locked in it.
If liquidated, your vault of collateral will be given to the liquidator, just like a normal borrow. Keep in mind as you are not lending your assets, you are not earning yield as a supplier with a single-sided position.
In the case of an exploit of an underlying asset, or bug in a market contract (for example, a infinite minting attack on a token, a de-pegging of an algorithmic stablecoin or market manipulation), single-sided positions would be able to weather the storm as the pool of lent assets suffers. As the funds sit idle in your own personal vault, your collateral is protected against bad actors who are looking to drain the protocol. The trade-off is a slightly higher borrow rate, as your assets are not earning supply yield during the duration of the position.