Maximize borrowing efficiency with Aave Efficiency Mode. Get higher LTV for correlated assets.
LendingIntermediate20-30 minutes6 stepsPrerequisites: Assets on Aave-supported network, Understanding of Aave basics, Collateral assets
On this page
Quick Overview
1Go to Aave
2Supply Collateral
3Enable E-Mode
4Confirm E-Mode
5Borrow Assets
6Monitor Health Factor
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
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Track your E-Mode positions with Fensory. Monitor health factor.
Start Tracking →
Step-by-Step Instructions
1
Go to Aave
Visit app.aave.com and connect your wallet.
Tips
✓Available on Ethereum, Arbitrum, and more
✓Choose network with lowest fees
2
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
3
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
4
Confirm E-Mode
Review new LTV and liquidation threshold. Confirm selection.
Tips
✓Higher LTV means more borrowing power
✓Also higher liquidation risk
5
Borrow Assets
Borrow assets from the same E-Mode category with improved rates.
Warnings
⚠97% LTV leaves little room for error
⚠Monitor position closely
6
Monitor Health Factor
Keep health factor above 1.0. E-Mode positions need more attention.