Credit LPs (Lenders)

In Twyne, Credit LPs (CLPs) are users who supply assets to lending protocols like Euler or Aave and don't borrow against their collateral. They are only looking for simple and passive yield options. On Twyne, they can go one step further:

CLPs can stake their lending market receipt tokens (e.g., eUSDC, aETH) and delegate their unused borrowing power to other users.

How it works

When a CLP delegates their borrowing power, they essentially underwrite a borrower’s loan. In return for taking on this added risk, the CLP earns an additional interest rate — called the CLP Supply Rate — on top of their base lending yield.

The total Lending yield is made of the Base Market APY and the Delegation APR.

Only on Twyne

• 💰 Boosted overall yield

• 🔄 Yield on idle borrowing power

• 📈 Defined exposure on an isolated risk market

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.