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Efficiency Mode (E-Mode) is a feature in HypurrFi that enables users to maximize their capital efficiency when borrowing assets that share similar risk characteristics.

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What is E-Mode?

E-Mode allows users to achieve higher borrowing power by grouping assets with correlated risks. For example, stablecoins like USDC and USDT typically maintain a similar value, so they can be grouped together in an E-Mode category. When a user activates E-Mode for a specific category, they can:
  • Borrow assets from the same category with a higher loan-to-value (LTV) ratio
  • Maintain a lower liquidation threshold for these correlated assets
  • Access greater capital efficiency than the standard borrowing mode

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How E-Mode Works

E-Mode works by recognizing that certain assets have correlated price movements, which reduces the overall portfolio risk when these assets are used together as collateral and borrowed assets. When E-Mode is activated:
  1. The user’s borrowing power increases for assets within the same E-Mode category
  2. The user can only borrow assets that belong to the activated E-Mode category
  3. The user’s health factor is recalculated based on E-Mode parameters

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E-Mode Categories

HypurrFi will offer several E-Mode categories, but currently emode is only enabled for HYPE-stHYPE pairings.

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Benefits of Using E-Mode

  • Higher capital efficiency: Borrow more against your collateral
  • Reduced liquidation risk: When using correlated assets
  • Optimized yield strategies: Enable more efficient leveraged positions
  • Enhanced liquidity management: Better utilize your capital across different assets within the same risk category
Note that activating or deactivating E-Mode will affect your borrowing power and may require adjusting your positions to maintain a healthy collateralization ratio.