what's Twyne?

Twyne is a DeFi protocol designed to unlock and utilize idle borrowing capacity within existing lending markets. It acts as an intermediary that matches lenders seeking higher yields with borrowers (leveragers) needing additional margin, without requiring new collateral deposits. By integrating with platforms like Aave and Compound, Twyne enables more efficient capital allocation, allowing underutilized borrowing power to generate returns for lenders while providing cost-effective leverage for borrowers. The protocol operates through smart contracts that facilitate looped borrowing strategies. Lenders supply assets to Twyne, which then deploys them into high-yield opportunities across DeFi ecosystems. Borrowers can access amplified positions by chaining borrows, with risk management handled via overcollateralization and liquidation mechanisms inherent to underlying protocols. This creates a symbiotic system where idle liquidity is activated, potentially increasing overall DeFi efficiency. Twyne emphasizes permissionless access and composability, allowing users to participate via wallets without KYC. It focuses on stablecoin and ETH-based assets to minimize volatility risks, with governance potentially evolving through community proposals as the protocol matures.

Twyne on Aave enables borrowers to raise their liquidation threshold.