Borrowers
Borrowers on Twyne can access more leverage than their base collateral allows in a lending protocol. With Twyne, they can tap into CLPs’ delegated borrowing power to temporarily boost their Loan-to-Value ratio (LTV).
Twyne can boost the LTV:
Up to 94% on volatile pairs (WETH-USDC)
>14x Leverage (compared to 5.9x on Aave)
Up to 99% on correlated pairs (WETH-stETH)
How it works
Deposit collateral (e.g.,
eUSDC) into Twyne’s Collateral VaultReserve delegated borrowing power from CLPs
Access greater borrowing capacity than allowed natively by the lending protocol
Borrowing Interest Rate
Borrowers pay two interest components:
Base borrow rate from the lending protocol
CLP Supply Rate (a fee to access the delegated borrowing power)
The CLP Supply Rate is dynamic and grows with utilization • Demand < Util. target = Low rates • Demand > Util. target = Sharp increase
The interest is paid only on the extra credit reserved, not the total debt!
This makes the net interest much lower than it seems even on a steep curve.
This enables:
🛡️ Larger liquidation buffers
🔄 Capital optimization strategies
📈 More aggressive leverage or liquidity
Read more details about the Interest Rates.
Risk & protection
Borrowers also benefit from Twyne’s built-in liquidation safety net:
🛡️ Twyne’s liquidators step in first to resolve bad debt positions
⚠️ If the market moves too fast and no liquidation is triggered in time, the underlying protocol steps in — which could result in losses for both borrower and CLPs
We've researched and rigorously tested the added risks, read more about them in Safety Mechanism.
Last updated