About Twyne
Today's lending markets like Euler and AAVE suffer from two core inefficiencies:
Over half the lenders aren’t using their borrowing power, lowering utilization rates for everyone and missing out on extra yield for themselves.
Borrowers are forced to opt in to conservative Liquidation Loan-to-Value (LLTV) ratios, which artificially limits their leverage exposure and causes premature liquidations.
Instead of tackling them in a vacuum, Twyne makes these 2 problems solve each other by letting borrowers rent unused borrowing power from other lenders to boost their Liquidation LTV (LLTV).
In creating a marketplace for borrowing power, Twyne lets lenders (called Credit LPs) earn additional APY by underwriting other users’ loans. On the other hand, borrowers on Twyne can utilize this extra credit capacity in several different ways: more defensively to create a larger safety buffer against liquidations, or more offensively to leverage up (or increase their maximum loop count).
In this documentation, we’ll outline the net-new benefits and use cases that Twyne unlocks for both lenders and borrowers, as well as outline the associated risks, safety and liquidation mechanisms.
Last updated