Efficency Mode

Efficiency Mode (eMode) is a strategic feature designed to optimize capital efficiency for our users. This innovation specifically targets scenarios where collateral and borrowed assets exhibit price correlation, enabling more effective leverage of assets within the Unleash ecosystem.

Overview of Efficiency Mode in Unleash Protocol

Efficiency Mode is engineered to enhance the financial dynamics of our platform, allowing for an increase in borrowing power when there is a recognized correlation between the prices of collateral and borrowed assets. Through eMode, Unleash Protocol aims to streamline investment strategies, providing a significant advantage in capital utilization.

Configuring eMode Categories

Unleash Protocol's governance structure empowers designated administrators to define up to 255 unique eMode categories. Each category is meticulously crafted with specific risk parameters, including:

• Loan-to-Value (LTV) Ratios: Determining the maximum borrowing capacity against collateral.

• Liquidation Thresholds: Setting the limits at which positions become susceptible to liquidation.

• Liquidation Bonuses: Establishing incentives for liquidators to maintain the protocol's health.

• Custom Price Oracle (Optional): Enhancing price accuracy for certain asset categories.

Category 0 serves as the default setting, applying standard operational parameters to assets not specifically categorized within eMode. This ensures a baseline of risk management across all assets on the platform.

User Engagement with eMode

Upon providing liquidity to Unleash Protocol, users are automatically assigned to Category 0 (the default eMode). Users have the flexibility to adjust their eMode category to better align with their investment strategy, provided:

• Their borrowed assets are uniformly categorized within the selected eMode.

• The adjustment does not compromise the collateralization of their position.

This customization empowers users to align their borrowing and lending activities more closely with their risk tolerance and market outlook, fostering a more personalized and efficient IPFi experience.