How It Works

Twyne integrates directly with established lending markets like Euler and lets users deposit IOU tokens (e.g., euler_USDC) that represent their position on the underlying market. By depositing and delegating their unused borrowing power, they receive an extra APR from borrowers that can access a higher LTV than on the underyling market with the same collateral.

This creates a second yield stream: Supply APY (base market) + Delegation APY (Twyne)

Three Main Usecases

1. Pure Credit LP (lender) – Maximize yield by fully delegating your borrowing power

• Deposit IOUs into the Credit Vault

• Forgo your own borrowing rights

• Underwrite borrower loans via Twyne

• Receive twyne_euler_USDC tokens

→ Earn delegation yield on top of standard lending APY

2. Pure Borrower – Boost borrowing power to lever up or add a liquidation buffer

• Deposit IOUs into the Collateral Vault

• Reserve extra borrowing power from the Credit Vault

• Twyne temporarily adds this delegated credit to your account

→ Borrow more from the underlying protocol than you normally could

3. Hybrid – Delegate and Borrow simultaneously

• Split your assets between:

  • Credit Vault (Delegate part of your borrowing power and earn yield)

  • Collateral Vault (Borrow some but not at your full borrowing capacity)

→ Borrow while you receive a solid yield from delegation

Only possible with Twyne 🧬

🔹 Modular Risk – Delegated credit is isolated from core lending risks 🔹 Protected Collateral – Collateral remains secured by the base lending market 🔹 Protocol-Agnostic – Works on top of existing DeFi money markets 🔹 Capital Unlocked – Almost fully utilizes the idle borrowing power that's left behind