Gearbox Overview

What is Gearbox?

Introduces Credit Accounts to increase capital efficiency in DeFi by using isolated smart contracts with predefined parameters such as whitelisted tokens and liquidation thresholds. These accounts hold user funds and borrowed margin funds, are non-custodial, and can be deployed on any DeFi protocol while ensuring users maintain ownership of their assets.

Main Features
Passive Yield
Low Risks
Earn passive APY
Manage Risks

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Frequently asked questions

To earn passive yield, you can deposit your assets into the Gearbox Protocol's Credit Account abstraction. This allows you to become a passive liquidity provider and earn APY rewards in the same asset without actively managing your positions. The protocol offers low risks for passive yield earners. Additionally, there are leverage users (referred to as "Ninjas") who actively engage in DeFi and manage their own risks. They can borrow assets from the passive liquidity providers to create spot leverage positions. However, it's important to note that engaging in these activities carries risks, and you should conduct your own research and investigation before participating.

The risks involved in using web3 technologies include the potential malfunction, breakdown, or abandonment of the blockchain network(s) on which the application operates. This can have a negative impact on the application itself. Additionally, advancements in cryptography or the development of quantum computing could render the cryptographic consensus mechanism ineffective, posing risks to the application and the underlying blockchain software. The smart-contract concept and the software are still in early development stages and unproven.

There is also a risk of software weaknesses, as the application and related software may not be secure or protected from phishing, malware, or other malicious attacks. These weaknesses, bugs, vulnerabilities, viruses, or defects in the software can adversely affect the operation of the application and lead to losses or damages for users or third parties.

It is important for users to conduct their own independent research and investigation before using web3 technologies, as they are provided on an experimental basis and without warranties of any kind.

Gearbox Protocol is suitable for both passive liquidity providers and leverage users in the DeFi space. Passive liquidity providers can deposit assets and earn passive yield through the protocol, while leverage users can borrow these assets to create spot leverage positions and actively manage their risks in the DeFi ecosystem.

Credit Account abstraction is a feature used in the Gearbox Protocol that combines lending and prime brokerage in the same protocol. It allows lenders to deposit assets and earn passive yield, while borrowers can use these assets to create spot leverage positions for trading and farming in the DeFi ecosystem. This abstraction enables passive liquidity providers to earn APY rewards without actively managing their positions, and leverage users (referred to as "Ninjas") to actively engage in high-risk strategies and manage their own risks.

To deposit assets in the Gearbox Protocol, you can connect your digital wallet to the platform. By doing so, you can deposit your assets and earn passive yield through the Credit Account abstraction. This allows you to passively provide liquidity and earn APY rewards in the same asset. There is no lockup on your capital or withdrawal fees, allowing you to sit back and earn yield. The platform also offers a second side for leverage users who actively manage their positions and engage in DeFi activities.

The current TVL (Total Value Locked) is $27.8M and the borrowed amount is $14.3M.

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