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High Efficiency Mode
In this section we explain how we increase capital efficiency with e-mode
At ZeroLend, we introduce "High Efficiency Mode" (E-mode) to empower users with enhanced capital efficiency. E-mode is designed to maximize Loan-to-Value (LTV) ratios, allowing users to optimize their borrowing and lending strategies. This section provides an in-depth understanding of E-mode and how it can supercharge your DeFi experience.
E-mode is a groundbreaking feature that revolutionizes the way you utilize your assets within the ZeroLend ecosystem. It's all about capital efficiency and leveraging correlated asset prices to your advantage.
Maximized Capital Efficiency: E-mode allows for LTV ratios of up to 97%, significantly enhancing your borrowing capacity. This means you can potentially borrow more while using the same collateral.
Correlation-Based Borrowing: E-mode is tailored for assets with correlated prices. For instance, stablecoins like DAI and USDC, both pegged to the USD, fall under the same E-mode category. If you supply DAI in E-mode, you'll enjoy increased collateralization power when borrowing assets like ARTH.
Category-Specific Borrowing: E-mode confines borrowing to assets within the same category. In other words, you can only borrow assets that share price correlation with your supplied collateral. This restriction ensures that E-mode remains a powerful tool for optimized borrowing.
Collateral Flexibility: E-mode doesn't limit your collateral choices. You can still use assets outside the E-mode category as collateral, following the standard LTV and liquidation parameters.
- How Do I Activate E-mode? Entering E-mode is a straightforward process from our user-friendly dashboard. Simply navigate to the dropdown menu under "Your Borrows" and locate the "Enable E-mode" button. Initially, this button will indicate that E-mode is "disabled." Click "Enable E-mode" and follow the instructions in the pop-up. Once completed, you'll harness enhanced borrowing power (up to 97% LTV) for assets within the same category, such as stablecoins.
- How Do I Deactivate E-mode? Exiting E-mode is just as easy. In the dropdown menu under "Your Borrows," select "Disable E-mode." Follow the instructions in the pop-up to exit E-mode. Your borrowing power will return to standard levels.
- What Impact Does E-mode Have on My Borrowing Power? With E-mode enabled, your borrowing power surges for assets within the same E-mode category. This means you can borrow more while maintaining optimal collateralization.