Glossary · DeFi
E-Mode
Also: efficiency mode, correlated asset mode
E-Mode is a lending protocol setting that raises the maximum loan-to-value when a borrower's collateral and debt are closely correlated assets, such as two forms of staked ether, at the cost of concentrating the position in one price relationship.
Related terms
- Looping
- Looping is the practice of depositing collateral, borrowing against it, converting the borrowed asset back into the collateral asset and redepositing, repeating the cycle to build leveraged exposure to a yield spread.
- Loan-to-value
- Loan-to-value, abbreviated LTV, is the ratio of borrowed value to collateral value, with each asset assigned a maximum LTV for new borrowing and a higher liquidation threshold at which the position becomes seizable.
- Liquid staking token
- A liquid staking token is a transferable claim on staked cryptocurrency and its accruing rewards, letting the holder use the position as collateral elsewhere while the underlying coins remain staked.
Stay informed
Verifiable crypto journalism, delivered to your inbox.
Weekday mornings. No hype. No financial advice. Just what happened and why it matters.
No spam. Unsubscribe anytime. Read our privacy policy.