Twyny Lands Seed Funding with Cyber Fund and Ethereal Ventures

Twyny, an on-chain credit delegation protocol, has announced a seed funding round co-led by Cyber Fund and Ethereal Ventures. The project reports more than $14 million in TVL, driven in part by Lido's EarnUSD vault using Twyne to double its leverage on top of Aave, Pendle, Strata Markets, and Ethena.

Twyny is building a 'Credit Delegation Layer' to reallocate unused borrowing power in on-chain lending markets. According to the project, a large share of credit in venues like Aave remains idle with depositors who are not borrowing, while other participants face binding credit constraints.

The team claims that more than $20 billion of borrowing power is currently underutilized across lending markets. By making borrowing capacity delegable, Twyne aims to let depositors earn additional yield by delegating their unused credit while enabling borrowers to increase their effective liquidation thresholds and boost leverage.