Lido Alliance application: Twyne

Summary

Twyne is a credit delegation protocol built on top of existing lending markets. It enables lenders to delegate their unused borrowing capacity in exchange for yield, creating additional credit lines and unlocking new strategies on top of lending protocols. The proposal asks for the onboarding of the Twyne Protocol to Lido Alliance.

Envisioned Agreement or Terms

From Twyne

• Ethereum-alignment and commitment to decentralize validation
  • stETH gains wide adoption as a base token within Twyne, the growth of credit delegation will directly contribute to expanding stETH’s role as collateral across DeFi. This not only enhances capital efficiency but also strengthens Ethereum’s decentralization by supporting a more diverse set of node operators through increased stETH demand.
• Twyne expands the use cases for stETH in DeFi:
  • stETH holders can underwrite various cases and get liquidation incentives passively by absorbing liquidated positions using their idle borrowing capacity.
  • Enables higher-leverage staking strategies by providing access to additional credit lines via delegated borrowing power.
• Use-case for other Lido Alliance members
  • Credit delegation enables leverage to be extended to virtually any token. Within the Lido Alliance, this includes liquid restaking tokens (LRTs), yield strategies from other protocols, and governance tokens of member projects.
• Token and revenue allocation
  • 10% of the total supply will be locked in a Lido Alliance legal entity after the Token Generation Event (TGE). These tokens will be held in perpetuity. These tokens will be subject to the same vesting and cliff terms as the team tokens: a 12-month cliff following the TGE, and a 24-month vesting period beginning after the cliff.
  • 50% revenue share on stETH pools where revenue share for Lido Alliance is primarily used for incentives and liquidity on Twyne.

From Lido Alliance BORG

What Twyne is seeking from Lido Alliance membership:

• Endorsement
  • Lido DAO supports Twyne as a member of the Lido Alliance.
• Ecosystem
  • Twyne and Lido Alliance share a common approach to decentralization and security - aligned with Lido DAO’s standards. This alignment is essential for building a healthy stETH-centered ecosystem within Twyne.
• Consultation
  • Twyne anticipates benefiting from the Lido DAO contributors’ extensive expertise in different aspects of the ecosystem and technology. This includes access to contributor groups for knowledge sharing, conducted in a limited and non-disruptive manner.
• Network
  • Lido DAO contributors and Twyne members will apply security best practices, refer talented individuals to each other (with no contributors poaching from either side), and collaborate in various ways to build a decentralized future for the Ethereum ecosystem.

Proposal actions

The proposal requests onboarding Twyne to Lido Alliance under the outlined envisioned agreement or terms and conditions.