E-Mode (Efficiency Mode)
E-Mode is designed for correlated assets, allowing higher borrowing efficiency when collateral and borrowed assets are expected to move closely together.
How E-Mode Works
- Correlated assets: E-Mode is intended for assets whose prices are expected to move closely together.
- Higher borrowing efficiency: eligible categories can receive higher LTV parameters than standard markets.
- Strategy use: E-Mode can support stablecoin loops, BTC-correlated pairs and other leveraged yield strategies.
Examples from LayerBank Deployments
| Network | Example category | Documented examples |
|---|---|---|
| Rootstock | BTC-correlated / stables | RBTC with BTC-correlated assets; USDT0 / USDC.e stable pairs. |
| Movement | ETH-correlated / stables | WETH.e with liquid-staking assets; USDC.e / USDT.e / sUSDe stable pairs. |
Exact LTV, liquidation threshold and penalty values are deployment parameters and should be checked in the current app before opening a position.
E-Mode Risk
Correlation is not guaranteed. Assets that usually track each other can diverge during market stress. Because E-Mode allows more leverage, a smaller price dislocation can materially affect position health.
When to Use E-Mode
E-Mode is most relevant when a user understands the relationship between the collateral and borrow asset, the applicable risk parameters and the cost of the leveraged position. Review live APR and liquidity before creating a loop.
Frequently Asked Questions
What is LayerBank E-Mode?
E-Mode is a risk configuration for correlated assets that can provide higher borrowing efficiency than standard market settings.
Does E-Mode remove liquidation risk?
No. E-Mode can increase leverage and therefore can increase sensitivity to price divergence and rate changes.
Where can I see current E-Mode parameters?
Use the current LayerBank app and deployment-specific market information because parameters can change by network and asset category.
Reviewed for layerbank.trade on November 2, 2026.