# High Efficiency Mode (E-mode)

### Overview

The High Efficiency Mode (E-mode) is designed to maximize capital efficiency by allowing users to leverage assets with correlated prices as collateral. This feature is particularly beneficial when dealing with assets like stablecoins, which maintain a consistent value relative to a specific reference, such as the USD.

### E-mode Asset Categories

Yei Finance supports two primary asset categories under E-mode:

1. **Stablecoins**: Examples include USDC and USDT, which are pegged to the USD and exhibit correlated price movements. Utilizing stablecoin E-mode, users can supply stablecoins and enjoy higher collateralization power when borrowing other stablecoins.
2. **SEI-related Assets**: This category includes assets such as WSEI and SEI. In SEI E-mode, users can supply these assets and benefit from a higher borrowing Loan-to-Value (LTV) ratio of up to 75%, thereby enhancing borrowing capacity.

### Borrowing Rules in E-mode

* **Category Restriction**: Only assets within the same category can be borrowed in E-mode. For instance, if a user supplies stablecoins in E-mode, they can only borrow other stablecoins.
* **Collateral Usage**: E-mode does not restrict the usage of other assets as collateral. Assets outside of the E-mode category can still be supplied as collateral, adhering to normal LTV and liquidation parameters.

### **How to Enter E-mode**

1. **Enable E-mode:** From the dashboard, find “Your borrows” and click “Enable E-mode.”

   <figure><img src="/files/eJeSHrDik0MpLoniMuNS" alt=""><figcaption></figcaption></figure>
2. **Follow Instructions:** After checking the warning and Gas Fee, click “Enable E-mode” to activate enhanced borrowing capabilities.

   <figure><img src="/files/tqVUX33wjoHWGQmfWvFZ" alt=""><figcaption></figcaption></figure>

### **How to Exit E-mode**

1. **Disable E-mode:** Select “stablecoins” icon under “Your Borrows” and click “Disable E-mode”.

   <figure><img src="/files/jgEnF4AFJfTESnU4rVwA" alt=""><figcaption></figcaption></figure>
2. After checking the Health factor, Maximum loan to value and Gas Fee, click “Disable E-mode” to deactivate E-mode.

### How to Switch Asset Category Under E-mode

1. **Switch E-mode Category**: Select the E-mode icon and choose "Switch E-mode Category" to switch between SEI-related E-mode and Stablecoin E-mode.

<figure><img src="/files/eIyogP6Xu28nRYAG0R3d" alt=""><figcaption></figcaption></figure>

2. **Confirm Assets Under E-mode**: Before switching to another asset category, ensure that you have repaid any outstanding debt under the current asset category.

<figure><img src="/files/enM7Gizbbpy450ivwsMG" alt=""><figcaption></figcaption></figure>


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