# 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. *** ### **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. *** ### **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. *** ### **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 *** ### **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 *** ### **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 *** ### **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 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.superlend.xyz/products/markets/superlend-markets/efficiency-mode.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.