E-Mode

High Efficiency Mode (E-mode)

The E-mode feature maximizes capital efficiency when collateral and borrowed assets have correlated prices. SparkLend currently groups assets into three E-mode categories: ETH (e.g. WETH, wstETH), USD stablecoins (e.g. USDC, USDT, sDAI, PYUSD), and BTC. Assets in the same category are price-correlated, so borrowing within a category unlocks higher collateralization power — for example, a user supplying sDAI in E-mode has higher borrowing power when borrowing USDC or USDT.

The exact category membership and risk parameters are set by Sky Governance and can change over time (assets are also sometimes frozen while being offboarded). The SparkLend app shows the categories and currently eligible assets.

Only assets of the same category (for example stablecoins) can be borrowed in E-mode.

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 with normal LTV and liquidation parameters.

How do I enter E-mode?

To enter E-mode from the go to My portfolio and find the Borrow section. Here you will find an E-Mode Toggle, which you can click.

You can then select which E-mode category you wish to choose.

Selection of E-Mode Category

You then submit the transactions in the Actions section to enable E-Mode.

How do I exit E-mode?

To exit E-mode, go to the My portfolio page and navigate to the Borrow section. Click on the E-Mode toggle and select No E-mode in the popup window. Carry out the transactions in the Actions section to exit E-mode.

How does E-mode affect my borrowing power?

When E-mode is enabled, you will have higher borrowing power over assets of the same E-mode category.