# E-Mode

<figure><img src="https://1597917952-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6gOnabVnWl4Os1zzbgjg%2Fuploads%2F3baKNLbR7aN8KBFKLbKj%2Fe-Mode%20-%20Dark.png?alt=media&#x26;token=fec14331-3e7b-4f58-a695-623b9ff9defd" alt=""><figcaption></figcaption></figure>

**E-Mode**, short for "Efficiency Mode," is designed to help users **maximize borrowing power** when dealing with **correlated assets**, such as stablecoins or tokenized versions of the same asset (e.g., EGLD and staked EGLD).

***

**How E-Mode Works**

* Positions must include **only assets within the same eMode group** at creation to benefit from its features.
* This design allows for **higher capital efficiency** compared to standard borrowing methods.

***

**Comparison: Non-eMode vs. eMode**

* **Non-eMode (other protocols):**
  * **Deposit:** 100 xEGLD → **Borrow:** 75 EGLD (75% LTV)
* **eMode (XOXNO):**
  * **Deposit:** 100 xEGLD → **Borrow:** 95 EGLD (95% LTV)

***

**Impact on Leverage:**

* **Non-eMode:**
  * Max leverage is limited to **\~7x**.
* **eMode:**
  * Max leverage can reach **20x**, enabling significantly better use of capital.

***

**Why E-Mode Matters**

* **Higher LTV Ratios:** Allows users to borrow more against their collateral.
* **Optimized Looping Strategies:** Enables users to maximize leverage safely using tightly correlated assets.
* **Improved Capital Efficiency:** Ideal for users aiming to **utilize their capital more effectively** while maintaining safety due to the **predictable price behavior** within the eMode group.