# 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 98%** on correlated pairs (WETH-stETH)
  * \>50x Leverage (compared to 20x on Aave)

### **How it works**

* Deposit collateral (e.g., `eUSDC`) into Twyne’s **Collateral Vault**
* Reserve delegated borrowing power from CLPs
* Access greater borrowing capacity than allowed natively by the lending protocol

<figure><img src="https://487956288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3KnzajNTqFNdyZr2k3l3%2Fuploads%2Fw36iETXYEuD9GSYWmQxX%2Fdelegation.png?alt=media&#x26;token=3d1e472f-90b9-45cf-9c42-e95b4d0f74eb" alt=""><figcaption></figcaption></figure>

### **Borrowing Interest Rate**

Borrowers pay two interest components:

1. **Base borrow rate** from the lending protocol
2. **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!**&#x20;
>
> This makes the net interest much lower than it seems even on a steep curve.

<figure><img src="https://487956288-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3KnzajNTqFNdyZr2k3l3%2Fuploads%2Fh4WMmo27R5fCgvN5jxcW%2Fimage.png?alt=media&#x26;token=9d8a3353-31f3-4dc8-8e94-71edb58cc112" alt="" width="563"><figcaption></figcaption></figure>

Read more details about the [Interest Rates](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](safety-and-liquidation-mechanisms).
