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High Efficiency Mode (E-Mode)

In this section we explain how we increase capital efficiency with E-Mode
E-Mode, or High Efficiency Mode, empowers borrowers to maximize their borrowing capacity by using correlated assets within the same category, such as stablecoins, as collateral. For instance, supplying $USDC in eMode allows for enhanced collateralization power when borrowing $ONEZ.
In eMode, ZeroLend classifies assets based on:
  1. 1.
    Loan-to-Value (LTV): Higher LTV enables borrowers to access more funds relative to collateral value within the same category. E-mode allows for LTV ratios of up to 97% under the same category.
  2. 2.
    Liquidation Threshold: This is the minimum collateral amount needed to avoid liquidation, offering borrowers greater control over risk exposure.
  3. 3.
    Liquidation Bonus: Borrowers receive rewards for early loan repayment in eMode, encouraging responsible borrowing behavior.
Notably, E-Mode doesn't restrict the use of other assets as collateral; assets outside the eMode category can still be supplied with normal LTV and liquidation parameters.

How do I activate E-Mode?

  1. 1.
    Go to "Dashboard".
  2. 2.
    Locate the E-Mode "Disabled ⚙️" button beside "Your Borrows" and click on it.
  1. 3.
    In the pop-up modal, select the "Asset Category" you wish to interact with while in E-Mode, for example, "Stablecoins."
  1. 4.
    Under the "Transaction Overview⚙", you will see all the assets you can borrow. Example: "All Assets → USDC, USDT," which suggests that you can borrow stablecoins like USDC and USDT when E-Mode is enabled.
  2. 5.
    Click on "Enable E-Mode".

How Do I Disable E-mode?

You can disable it by clicking the "Enabled ⚙️" button beside "Your Borrows". Select the category and click on "Disable E-Mode". Your borrowing power will return to standard levels.