How It Works

Twyne integrates directly with established lending markets such as Euler, allowing users to deposit IOU tokens (e.g., euler_USDC) that represent their underlying positions.

By depositing and delegating unused borrowing power, lenders earn an additional APY from borrowers who can access higher LTVs than the underlying market would otherwise permit, using the same collateral.

This creates a second yield stream:

1. Supply APY (base market)

2. 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