SuperCharged Mode

Enhance accessibility and liquidity for correlated assets.

What is the SuperCharged Mode?

SuperCharged Mode is designed to maximize capital efficiency when collateral and borrowed assets are correlated in price. This feature restricts borrowers to borrowing only assets within a specific category of correlated assets. Generally, these assets are derivatives of the same underlying assets, such as stETH and rETH. Other categories include stablecoins pegged to a fiat currency, such as USX or USDC, which are pegged to the USD. Currently, Unitus V2 supports ETH relatives and stable assets on different networks.

SuperCharged Mode can only be activated manually. When you deposit and borrow assets of the same category, you can switch to SuperCharged Mode, allowing you to unlock higher capital efficiency. Each category will have its own customized risk parameters, including higher LTV ratios and liquidation thresholds. Users can choose to switch between categories or disable the function as long as all their borrowed assets are within the same category.

Benefits of the Supercharged Mode

• Higher borrowing capacity: borrowers can access more capital against their collateral assets when they deposit and borrow assets within the same categories, unlocking greater capital efficiency.

• Reduced liquidation risk: when users deposit and borrow assets with correlated price, they will have better predictability to mitigate liquidation and will incur lower liquidation penalties, safeguarding their assets from excessive liquidation.

• Lower risk of bad debt for the platform, as the assets in the same category witness similar relative price variations.