Efficiency Mode (E-Mode)

Introduction

The High-Efficiency mode feature (or "E-Mode") is designed to maximize capital efficiency when collateral and borrowed assets are correlated in price.

Tokens of the same type are categorized according to their market performance and liquidity. Only assets of the same category (for example, stablecoins) can be borrowed in E-Mode.

For example, $stHOPE represents staked $HOPE. As both $HOPE and $stHOPE share similar characteristics, they are grouped in the same E-Mode category. Accordingly, a user supplying $stHOPE in E-Mode will have higher collateralization power when borrowing $HOPE compared to using it as collateral to borrow other tokens.

E-Mode does not restrict the usage of other assets as collateral. Assets outside of E-Mode category can still be supplied as collateral with normal LTV.

E-Mode

*The graph above is for reference only, and the actual situation will vary.

When the E-Mode is on, the available borrowing assets will be limited to the same category as the collateral assets.

• Users can turn off E-Mode, but there are certain rule-based restrictions due to risk considerations.

• Turning off E-Mode will trigger a health factor check. E-Mode cannot be turned off if the health factor falls below 1.