# Gauntlet Aave V3 E-mode Methodology

**URL:** <https://governance.aave.com/t/gauntlet-aave-v3-e-mode-methodology/12278>\
**Category:** Governance\
**Created:** [March 14, 2023, 3:27am UTC](https://governance.aave.com/t/gauntlet-aave-v3-e-mode-methodology/12278 "2023-03-14T03:27:11Z")\
**Posts on this page:** 1\
**Showing post:** 10

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**Author:** ![ghostlyenergy](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ghostlyenergy/32/5869_2.png) [@ghostlyenergy](https://governance.aave.com/u/ghostlyenergy)\
**Post date:** [March 18, 2023, 1:24am UTC](https://governance.aave.com/t/gauntlet-aave-v3-e-mode-methodology/12278/10 "2023-03-18T01:24:27Z")

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> [@Pauljlei](#):
>
> This is a key question that we would value community input on.

I’ve seen the following usecases for eMode on stables.

1.) Shorting/longing the Euro.  
Some markets (polygon) offer stable-eMode for both EURO and USD denominated stablecoins. This was a popular way to bet against the falling EURO in H2 2022.

2.) Shorting USDT  
Or more generally, people use eMode to short stables which, they view, are more likely to depeg (to the downside).

3.) Arbitrage (as mentioned earlier)

If we were to turn stablecoin eMode into ‘USDC eMode’ (DAI, FRAX, USDC) we would remove usecase `1` and parts of `2` and `3`.

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