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.”

2

Follow Instructions

After checking the warning and Gas Fee, click “Enable E-mode” to activate enhanced borrowing capabilities.

How to Exit E-mode

1

Disable E-mode

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

2

Confirm and disable

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.

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.