Overview

TownSquare is a low-latency cross-chain lending protocol. It enables overcollateralized borrowing and lending across EVM and non-EVM chains and a variety of on-chain assets, including liquid staked tokens, fixed yield assets such as Principle Token (PT), liquidity provider positions, and more liquidity primitives.

By enabling assets to be collateralized for both single-chain and cross-chain borrowing, TownSquare maximizes capital efficiency for lenders and yield access for retail and institutions with strategies that involve cross-chain borrowing and leverage.

Key functionalities

• Markets for the next generation of assets: Flexible market infrastructure supports sophisticated collateral types, including LST, PT LP, other yield-bearing assets & RWAs.

• Unfragmented lending and borrowing: Markets directly built on cross-chain infrastructure to allow collateral to borrow any asset from any chain, without the need to bridge or need to lose asset exposure on the source chain.

• Cross-chain yield loops: Unlike existing protocols that only limit levered exposure to yield-bearing assets within a single chain, cross-chain loops on TownSquare can be achieved via collateralizing to borrow assets on a different chain that offers more attractive yields.

• Isolated loan positions: Isolated loan positions prevent risk contagion between collaterals during volatilities.

• Capital-efficient: lending vault liquidity is directly utilized by loop strategy vaults, and unutilized liquidity is allocated to earn yield from external sources.

• Institution-friendly DeFi experience: Fast-to-market support for RWAs & emerging yield-bearing assets plus customizable strategy vaults for institutional curators.