How to Use Aave E-Mode
Aave E-Mode (Efficiency Mode) lets you borrow more when using correlated assets as collateral. For example, borrow more USDC using USDT as collateral since both are stablecoins.
What is E-Mode?
Normal Aave limits how much you can borrow to protect against volatility. E-Mode recognizes that correlated assets (like stablecoins) have lower liquidation risk.
E-Mode Categories:| Category | Assets | Max LTV |
|---|---|---|
| . . . . . | . . . . | . . . . - |
| Stablecoins | USDC, USDT, DAI | 97% |
| ETH Correlated | ETH, wstETH, rETH | 93% |
| Default | Mixed | 80% |
Benefits
- Higher LTV (borrow more)
- Lower liquidation risk for correlated pairs
- Capital efficient strategies
. -
Track your E-Mode positions with Fensory. Monitor health factor.[Start Tracking →](https://www.fensory.com)
Step-by-Step Instructions
Go to Aave
Visit app.aave.com and connect your wallet.
Tips
- ✓Available on Ethereum, Arbitrum, and more
- ✓Choose network with lowest fees
Supply Collateral
Deposit assets that qualify for E-Mode. Check category requirements.
Tips
- ✓Stablecoin E-Mode: USDC, USDT, DAI
- ✓ETH E-Mode: wstETH, ETH, rETH
Enable E-Mode
Click E-Mode in dashboard, select category matching your assets.
Tips
- ✓Can only use one E-Mode at a time
- ✓All collateral must match category
Confirm E-Mode
Review new LTV and liquidation threshold. Confirm selection.
Tips
- ✓Higher LTV means more borrowing power
- ✓Also higher liquidation risk
Borrow Assets
Borrow assets from the same E-Mode category with improved rates.
Warnings
- ⚠97% LTV leaves little room for error
- ⚠Monitor position closely
Monitor Health Factor
Keep health factor above 1.0. E-Mode positions need more attention.
Tips
- ✓Set up alerts for health factor
- ✓Close to 1.0 = liquidation risk