> For the complete documentation index, see [llms.txt](https://docs.superlend.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.superlend.xyz/products/markets/superlend-markets/efficiency-mode.md).

# Efficiency Mode

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.

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### **How E-Mode Works**

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.

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### **E-Mode Asset Categories**

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.

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### **Collateral Behavior Outside E-Mode**

* 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

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### **Entering and Exiting E-Mode**

* 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

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### **How E-Mode Affects Borrowing Power**

* Borrowing power increases for assets within the same category
* Liquidation risk remains lower due to correlated pricing
* Restrictions prevent misuse across unrelated assets

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### **Why E-Mode Exists**

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