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:
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.
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
Enable E-mode: From the dashboard, find “Your borrows” and click “Enable E-mode.”
Follow Instructions: After checking the warning and Gas Fee, click “Enable E-mode” to activate enhanced borrowing capabilities.
How to Exit E-mode
Disable E-mode: Select “stablecoins” icon under “Your Borrows” and click “Disable E-mode”.
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
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.
Confirm Assets Under E-mode: Before switching to another asset category, ensure that you have repaid any outstanding debt under the current asset category.
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