Borrowing Power and LTV on Twyne

Why this matters

Your borrowing limit — the Loan-to-Value ratio (LTV) — determines how much you can borrow based on your collateral. Most DeFi platforms set this number conservatively to protect against market drops.

But that also means your assets often get sold off too early — even though your position could have survived the dip. In other words, you’re being forced to play it safe, even when you could handle more risk.

How Twyne changes this

Twyne separates two things:

• Capital: your actual deposited assets
• Credit: unused borrowing power that others choose to delegate

By combining both, Twyne lets you borrow more — or reduce your liquidation risk — depending on what you want.

Two LTVs you should know

1. Underlying LTV (platform limit)

This is what the base lending platform (like Euler) tracks. It includes your collateral plus any extra credit reserved from Credit LPs. This number must stay below their liquidation threshold to avoid being liquidated by the platform directly.

2. Twyne LTV (your actual leverage)

This is how much you’re borrowing compared to your own collateral only. It reflects how aggressive or conservative your position is. Twyne lets you choose your own Twyne LTV — within safe limits — and manages the buffers needed to keep your underlying LTV safe.

Think of it like this:
You’re borrowing more than usual, but Twyne brings extra padding (from Credit LPs) to make it look safer to the underlying protocol.

Why it works

Twyne tracks how much delegated credit (from Credit LPs) is needed to keep you safe, and reserves just enough to keep your position from being liquidated by the base protocol.

What this means for you

• You choose your risk level (your liquidation LTV).
• Twyne makes sure the underlying platform always sees your position as safe.

Twyne turns LTV into something flexible — not just a fixed platform rule, but a setting you can tune to match your strategy.