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Efficiency Mode (eMode)
The High Efficiency mode feature (or "eMode") is designed to maximise capital efficiency when collateral and borrowed assets are correlated in price.
The
RISK_ADMINS and POOL_ADMIN, set by Maker Governace, can configure a maximum of 255 eMode categories, with each EModeCategory having following risk management parameters:- LTV (Loan to value)
- Liquidation threshold
- Liquidation bonus
- A custom price oracle (optional)
💡 Category 0 is reserved as the default non-eMode category. All the assets listed on Spark Protocol, by default have category 0 (which indicates the standard operational mode).
All Assets listed on Spark Protocol can be set to any of the pre-configured
eModeCategory by the RISK_ADMINS or POOL_ADMIN.The correct categorisation is not enforced on-chain and needs to be maintained by the
RISK_ADMINS and POOL_ADMINS selected via the Maker Governace vote.eMode also offers the possibility of introducing a specific price oracle for a certain category.
If the user has supplied liquidity to the protocol, the user
eMode category is set to 0 by default.The protocol allows user to set the user eMode category to any of the
eModeCategories configured by the PoolConfigurator given the following conditions holds true:- all the borrowed assets of the user are in the chosen category.
- changing eMode doesn’t leave user position under-collateralised
Last modified 9mo ago