Efficiency Mode
How E-Mode increases borrowing efficiency for correlated, low-volatility assets.
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How E-Mode increases borrowing efficiency for correlated, low-volatility assets.
Efficiency Mode (E-Mode) increases capital efficiency for assets with highly correlated prices.
It is designed for low-volatility, USD-denominated assets such as stablecoins and certain real-world-asset–backed tokens.
When E-Mode is enabled:
Higher loan-to-value (LTV) and liquidation thresholds apply
Borrowing is restricted to assets within the same E-Mode category
Collateral and borrowed assets must have correlated price behavior
This allows users to borrow more efficiently while maintaining similar risk characteristics.
E-Mode categories are defined by Superlend governance.
A common category includes:
USD-denominated assets (e.g. stablecoins and select RWA-backed tokens)
Only assets within the active category can be borrowed while E-Mode is enabled.
Assets outside the E-Mode category can still be supplied as collateral
Standard LTV and liquidation parameters apply
Only category-matched assets benefit from enhanced efficiency
E-Mode can be enabled or disabled from the borrowing interface
When enabled, borrowing is limited to the selected category
Disabling E-Mode restores standard borrowing parameters
Borrowing power increases for assets within the same category
Liquidation risk remains lower due to correlated pricing
Restrictions prevent misuse across unrelated assets
E-Mode is designed to:
Improve capital efficiency for low-volatility strategies
Reduce liquidation risk for correlated assets
Enable safer, higher-LTV borrowing where appropriate
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