What is Twyne?

Twyne is a decentralized credit delegation protocol that routes unused borrowing capacity between participants on DeFi lending platforms. The protocol separates the collateralization layer from credit utilization, allowing liquidity providers to delegate their idle borrowing power to borrowers who require additional leverage. In this system, liquidity providers receive delegation fees for providing capacity, while borrowers utilize this capacity to execute trades without supplying additional underlying collateral.

The protocol is built using Euler Finance's Ethereum Vault Connector (EVC) and EVK infrastructure. Its technical architecture includes automated rebalancing of delegated credit, dynamic interest rate algorithms, and standard liquidation mechanisms. Operating on EVM-compatible networks, primarily Base, Twyne enables the technical coexistence of different risk profiles within a single lending pool and automates the on-chain credit allocation process.