Efficiency Mode
What is E-Mode?
E-Mode stands for Efficiency Mode.
It is an account-wide risk mode that groups highly correlated assets into a single borrowing and collateral basket. When your account uses a compatible category, Neverland can apply higher capital efficiency than the default per-asset configuration.
In practice, E-Mode can let you:
borrow more efficiently against correlated assets
use a tighter collateral model for assets that usually move together
pay a lower liquidation bonus on collateral inside your category
Important: E-Mode is not asset-by-asset. It applies to your whole account for the market. You can only be in one E-Mode category at a time, or in Default Mode.
E-Mode is available in the main market only. The isolated markets have no E-Mode categories.
Available E-Mode Categories
Liquid Staking Tokens
1
WMON hMON sMON shMON gMON
WMON hMON
88%
90%
5%
Stablecoins
2
USDC USDT0 AUSD
USDC USDT0 AUSD
93%
94%
4%
In the app, the categories appear as MON & LST and Stables (LST and Stables in Pro Mode).
Default Mode
Default Mode is the normal market configuration where each reserve uses its own native collateral and borrowing rules.
Default Mode does not use a category-wide correlated basket.
How E-Mode Works
When you enable an E-Mode category:
Your account switches from reserve-native rules to the selected correlated category.
Assets inside that category can receive the category's boosted collateral treatment.
Borrowing compatibility is checked against the category's allowed borrow basket.
The change affects the entire account, not only the asset you clicked.
When you return to Default Mode:
The account leaves the correlated category.
Category-wide boosts are removed.
Every reserve goes back to its own native market parameters.
What Changes When You Enable E-Mode?
Depending on the category and your current positions, E-Mode can change:
which supplied assets count efficiently as collateral
the effective LTV used for correlated assets
the effective liquidation threshold used for correlated assets
which borrowed assets are compatible with your current mode
your projected health factor
What Neverland Checks Before Allowing a Switch
Neverland blocks unsafe or incompatible E-Mode changes before transaction submission.
1. Incompatible Borrows
If you already have debt in an asset that does not belong to the target category's borrow basket, the switch is blocked.
Example:
you want to switch into Stablecoins
your account still has an active WMON borrow
Result:
the switch is blocked until that incompatible debt is repaid
2. Zero-LTV or Disabled Collateral After Switch
If assets you currently use as collateral would become unusable or effectively zero-LTV under the target mode, the switch is blocked.
Result:
you must disable or remove that conflicting collateral first
3. Health Factor Safety Margin
If leaving a category for Default Mode would drop the projected health factor below 1.01, Neverland blocks the switch. The same margin applies to any target mode you choose from the Collateral option picker in the supply form.
Result:
the transaction is not allowed through the app
the UI explains that the switch would drop the account below the safety margin
Entering a category, or switching straight from one category to another, is checked for incompatible borrows and zero-LTV collateral (checks 1 and 2).
Note: If your account has no borrows, health factor does not provide meaningful additional signal, so the app focuses on the mode summary instead of a risk change.
How E-Mode Affects Borrowing
If you are already inside an E-Mode category, borrowing is only allowed for assets that are borrow-enabled inside that active category.
This means:
being in Stablecoins can block non-stable borrowing
being in Liquid Staking Tokens can block non-LST borrowing
returning to Default Mode removes the category-wide borrow basket and falls back to reserve-native rules
How E-Mode Affects Collateral
E-Mode can also change whether a reserve is practically usable as collateral for your account.
This is especially important for assets whose collateral usefulness depends on the active correlated basket.
If an asset requires E-Mode to be efficient as collateral
Neverland will tell you to enable a compatible E-Mode first.
If you try to toggle collateral directly
The collateral change modal does not change your account's E-Mode for you. It only changes collateral usage inside your current mode.
If a different E-Mode is required, the app routes you to Manage E-Mode instead.
Supply & E-Mode Behavior
On supply flows, you can choose the E-Mode your account should be in after the supply. When more than one option is available, the supply form shows a Collateral option picker, which defaults to your current mode. Switching is optional.
Current behavior on Neverland when you pick a different mode:
the app requests a token approval first, if one is needed
then it performs the E-Mode switch
then it submits the supply transaction
this is intentionally handled as a chained flow of separate transactions, not as a single bundled multicall
Why this matters:
it is more reliable for the current Neverland/Monad setup
it avoids fragile bundled transaction behavior
the app skips unnecessary E-Mode transactions if the account is already in the target category
Manage E-Mode UI
The entry point is the E-Mode button, marked with a lightning icon, in the Global Markets filter bar, the mobile markets header, and the Pro Mode header. It appears once a wallet is connected. While E-Mode is active, your dashboard also shows an E-Mode badge.
The button opens the Manage E-Mode modal, whose action button reads Enable E-Mode, Switch E-Mode, or Disable E-Mode depending on your current mode and the one you select.
Inside the Manage E-Mode modal, Neverland shows:
the current mode
the selected next mode
the category collateral basket
the category borrow basket
projected health factor changes, when relevant
safety blocks for incompatible switches
Practical Examples
Example 1: Enabling Stablecoins E-Mode
You supply USDC and want to borrow against a stable basket more efficiently.
If your account has only stable-compatible debt and collateral, enabling Stablecoins can increase capital efficiency versus Default Mode.
Example 2: Leaving E-Mode
You are in Liquid Staking Tokens mode and want to go back to normal reserve rules.
Neverland checks:
whether the switch would make your current collateral unsafe
whether your health factor would drop below 1.01
If not, the account can return to Default Mode.
Example 3: Asset Needs E-Mode for Collateral
You try to enable collateral on an asset whose useful collateral treatment depends on a compatible category.
Result:
the collateral toggle is blocked
the app tells you to enable the required E-Mode first
FAQ
Is E-Mode optional?
Yes. You can stay in Default Mode and use reserve-native rules.
Can I be in multiple E-Mode categories at once?
No. Only one category can be active at a time.
Does E-Mode affect only the asset I clicked?
No. E-Mode changes the entire account's correlated collateral and borrowing basket for the market.
Can E-Mode improve my health factor?
Sometimes yes, sometimes no.
It depends on:
what you supplied
what you borrowed
whether those assets are compatible with the target category
how the category changes your collateral efficiency
Why is the app blocking my switch?
The most common reasons are:
incompatible active borrows
collateral that would become unusable or zero-LTV
projected health factor below 1.01 when returning to Default Mode
Risk Reminder
E-Mode increases efficiency by assuming stronger correlation between assets. That can improve capital usage, but it also means the account becomes more dependent on that correlation holding under stress.
Always review:
your current borrows
your collateral mix
your projected health factor
whether Default Mode may be safer for your position structure
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