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Efficiency Mode (EMode) lets you borrow more when your collateral and debt are tightly correlated. Instead of using each asset’s standalone limits, EMode applies group parameters (LTV and liquidation threshold) to assets that move together, improving capital efficiency while keeping risk contained to that group.

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How It Works

  • Grouped collateral: Enable EMode for a single correlation group (for example, LUNA + its liquid-staked variants, or stablecoins).
  • Higher LTV: Borrowing power is determined by the group’s parameters, not individual assets.
  • Single‑group rule: Collateral must stay within that group; adding any other collateral disables EMode.
Quick example: 
Standard: $10,000 LUNA at 70% LTV → $7,000 max borrow
EMode (Luna group): $10,000 LUNA at 93% LTV → $9,300 max borrow

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Activation

1

Supply one group

Supply collateral from a single EMode group only.
2

Enable in app

Choose the matching EMode group in your dashboard.
3

Keep it clean

Avoid supplying assets outside the group; doing so disables EMode.
Deactivation happens automatically if you supply non‑group collateral, or you can turn it off manually.

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When To Use

Use EMode when your collateral and intended borrow are closely correlated (e.g., LSTs vs LUNA, or stablecoin‑to‑stablecoin). Avoid it if you need mixed collateral or aren’t confident about correlation/peg stability.

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Risks

  • Depeg/correlation breaks reduce safety quickly at higher LTVs
  • Supplying an out‑of‑group asset disables EMode and lowers borrowing power
  • Concentration: all collateral sits in a single group
Simple guardrails: 
Stay below max: target 80–90% of the group LTV
Track health factor; set alerts for drawdowns

Lending & Borrowing

Core mechanics that EMode builds on.

Health Factor

How safety is measured with group parameters.