E-Mode

Not yet available. It will be only available on BNB Chain Core Pool.

Overview

The Venus Protocol introduces E-Mode (Efficiency Mode) to the BNB Chain Core Pool, a new feature designed to boost capital efficiency for specific asset pools, such as stablecoins or ETH-based tokens. It also aims to isolate risk within these pools while reusing liquidity from the Core Pool.

E-Mode allows users to activate specialized pools within the Core Pool, each with customized risk settings. By selecting an E-Mode pool, your eligible assets follow optimized parameters for collateral factor (CF) and liquidation threshold (LT), which are increased, while the liquidation incentive (LI) is decreased, making borrowing more efficient and cost-effective while keeping risks contained.

What’s Changed

To support E-Mode, the Core Pool itself has been enhanced with new risk mechanics:

  • Liquidation Threshold (LT) Support – Similar to isolated pools, LT is now used to determine liquidation conditions, separate from CF.

  • Per-Market Liquidation Incentive (LI) – LI is no longer global; each market has its own incentive, configurable by Governance.

  • User-Specific Risk Factors – Effective CF, LT, and LI now depend on the user’s selected E-Mode pool, giving each user a tailored borrowing and collateral profile.

Architecture Overview

E-Mode operates as a lightweight overlay on the Core Pool, enabling per-user risk management without moving funds to separate pools.

  • Core Pool (poolId = 0): The default pool for all users. Supports per-market LIs and LT, even for non-E-Mode users.

  • E-Mode Pools (poolId > 0): Each pool defines a set of assets (e.g., Stablecoin Pool, ETH Pool) with customized CF, LT, and LI for each asset in the pool. Users select a pool to activate its risk parameters.

  • Pool-Market: Markets are tracked per pool, allowing pool-specific overrides while preserving Core Pool compatibility.

  • User Pool Tracking: Each user is associated with exactly one pool at a time via userPoolId. Switching pools updates this mapping and triggers the relevant risk rules.

This architecture ensures flexibility, backward compatibility, and gas efficiency, while giving users higher borrowing efficiency and better risk isolation.

Impact on Users

  • No Action Needed – Users remain in the Core Pool by default. Their positions continue to function normally without switching to E-Mode.

  • Optional Upgrade – By entering an E-Mode pool, your account will use its risk settings for approved assets.

  • Note: Improved Risk Mechanics – Even without switching, Core Pool users now benefit from per-market liquidation incentives (LI) and liquidation threshold (LT) support, making liquidation calculations and account health evaluations more precise.

Impact on Liquidators

E-Mode introduces more precision and flexibility for liquidators in the Core Pool:

  • Per-Market Liquidation Incentives – Liquidation incentives (LI) are now set on a per-market basis rather than being global. Before liquidating, liquidators should check the LI for each asset. If a user is in an E-Mode pool and uses collateral that isn’t enabled in that pool, the LI for that asset can be zero.

  • Liquidation Thresholds (LT) – LT now determines when accounts can be liquidated, replacing the older CF-based check for liquidations.

  • User-Specific Risk Factors – Effective CF, LT, and LI can vary per user depending on their E-Mode pool, making liquidation decisions more targeted and strategic.

This gives liquidators smarter targeting, higher transparency, and better reward optimization across markets.

How It Works

  1. Default in the Core Pool All users start in the Core Pool and can continue their positions normally.

  2. Select an E-Mode Pool Explore available pools (e.g., Stablecoin) via the Venus App or Venus Lens.

  3. Check Your Borrows Borrowed assets must be approved in the selected pool. Repay any disallowed assets first.

  4. Check Core Pool Fallback Each E-Mode pool has a flag allowCorePoolFallback that determines whether assets not included in the E-Mode pool will use the Core Pool’s risk factors (i.e. CF, LT, LI). If fallback is not allowed, users must exit these markets (i.e., remove such assets as collateral) to ensure they aren’t unintentionally liquidated.

  5. Enter E-Mode Eligible assets follow E-Mode risk settings, while non-pool assets continue using Core Pool parameters.

  6. Enjoy Higher Efficiency Borrow and manage positions with optimized collateral and liquidation rules.

For a detailed technical explanation, including implementation and user examples, check out the full E-Mode technical article.

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