search

Efficiency Mode

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.

hashtag
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.

hashtag
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.

hashtag
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

hashtag
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

hashtag
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

hashtag
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

PreviousSuperlend MarketsNextIsolation Mode

Last updated