⚡E-Mode (Efficient Mode)

E-Mode — short for Efficient Mode — is an advanced feature on Sonarix designed to optimize borrowing power and reduce borrowing costs for users interacting with correlated assets.

What is E-Mode?

In traditional lending protocols, each asset has its own collateral and borrowing limits. When a user borrows or supplies multiple related assets, their borrowing power may be limited by conservative risk parameters applied separately to each asset.

E-Modeallows users to group closely correlated assets together into a special mode where:

• Higher borrowing power is granted by recognizing the lower risk of assets moving in sync.

• Lower borrowing interest rates are applied within the mode.

• Collateral factors and liquidation thresholds are adjusted to better reflect the actual risk of correlated asset pairs.

This means users can unlock more efficient borrowing and lending opportunities when dealing with assets in the same category or ecosystem (for example, stablecoins or assets pegged to the same currency).

How E-Mode Works on Sonarix

• When a user activates E-Mode for a group of correlated assets, Sonarix applies custom risk parameters that increase the loan-to-value (LTV) ratios and reduce liquidation risks within that group.

• The platform dynamically adjusts borrowing rates to be lower inside E-Mode, encouraging users to borrow more efficiently.

• Users can maximize capital efficiency by leveraging E-Mode when interacting with stablecoins, synthetic assets, or assets from the same protocol.

Benefits of E-Mode

• Increased borrowing power: Users can borrow more against their collateral without additional risk.

• Lower borrowing costs: Interest rates are reduced within E-Mode, saving users money.

• Optimized risk management: The platform better matches risk profiles for correlated assets, reducing unnecessary liquidations.