Credit LPs (Lenders)

In Twyne, Credit LPs (CLPs) are users who supply assets to lending protocols like Euler or Aave but choose not to borrow against their collateral. They typically seek simple, passive yield opportunities.

On Twyne, CLPs can take it a step further: by staking their lending market receipt tokens (e.g., eUSDC, aETH), they can delegate unused borrowing power to other users.

How it works

When a CLP delegates borrowing power, they effectively underwrite a borrower’s loan. In exchange for this added risk, they earn an additional interest rate — the CLP Supply Rate — on top of the base lending yield.

You can dive deeper into the math behind the CLP supply rate here.

Risk & protection

CLPs accept a higher risk profile compared to passive lending. To decrease that risk:

• 🛡️ Twyne acts as a first-order liquidator, resolving borrower positions before they become eligible for liquidation on the base protocol.

• ⚠️ If liquidation doesn’t happen on time, the underlying protocol takes over. This can result in losses for the CLP.

We've researched and rigorously tested the added risks, read more about them in the Safety Mechanism section.