Efficiency Mode
Efficiency Mode (eMode) is a feature on Amply Finance designed to increase your capital efficiency when using highly correlated tokens as collateral and for borrowing. By grouping tokens with high price correlation, such as stablecoins, eMode allows you to borrow against your collateral at a higher max Loan-to-Value (LTV) ratio, increasing your available borrowing power.
At launch, we will only be offering “stablecoin” eMode for vUSD and USDC. The parameters for this category such as Max LTV can be found here.
Key Benefits of eMode:
Higher Max LTV: When you activate eMode and use correlated tokens within the same category, you’ll gain access to a higher max LTV for these assets, enabling you to borrow more capital.
Stablecoin Efficiency: vUSD and USDC are stablecoins. By entering the “stablecoin” eMode category, you can supply either of these tokens and borrow them at a higher LTV than standard, although you can only borrow tokens within the chosen eMode category.
Restrictions:
Borrowing Limits: When eMode is activated, you can only borrow tokens within the chosen eMode category.
Collateral Flexibility: You can supply any token as collateral, but only those in the active eMode category will enjoy the higher LTV benefits.
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