E-Mode Advanced

E-Mode (Efficiency Mode) is an advanced feature that unlocks higher borrowing limits by grouping closely correlated assets together. Instead of applying the same conservative limits to all assets, E-Mode allows users to access optimized borrowing power when working within specific asset categories that share similar risk profiles.

Key Benefits

• Higher Borrowing Power: Gain increased Loan-To-Value (LTV) ratios when borrowing assets within the same E-Mode category, such as stablecoins or liquid staking tokens (LSTs).

• Optimized Capital Efficiency: Utilize your assets more effectively, allowing for advanced trading strategies and yield opportunities.

• Risk Management: E-Mode categories are designed around highly correlated assets, reducing the risk of liquidation during market fluctuations.

How E-Mode Works

When assets are grouped into E-Mode categories, such as stablecoins or LSTs, users can enable E-Mode to access better borrowing conditions. The feature assumes that closely correlated assets are less likely to diverge in value, allowing the protocol to safely increase borrowing power while maintaining a strong risk management framework.

All assets within the same E-Mode category share the same LTV, Liquidation LTV (LLTV) and Liquidation penalty. This standardization ensures consistent treatment of correlated assets and helps maintain the stability of the protocol.

Pike’s E-Mode is a powerful feature for users looking to optimize their strategies and increase the flexibility of their borrowing on the Pike. It combines enhanced efficiency with robust safety measures, offering a dynamic and effective way to manage correlated assets.