Buy Gearbox (GEAR)

What is Gearbox?

Gearbox is a composable leverage protocol designed to enhance capital efficiency within the decentralised finance (DeFi) ecosystem. It allows users to access leverage in a modular way, enabling interactions with various DeFi services, similar to cross-platform margin trading. The protocol is built on the Ethereum blockchain and features credit accounts that facilitate a range of leveraged activities.

How does Gearbox work?

Gearbox operates by utilising the Ethereum blockchain and smart contracts to provide a secure and decentralised composable leverage protocol. It uses credit accounts as the base unit, which can be leveraged for trading, staking, and other activities across different DeFi platforms. The protocol is underpinned by a Proof of Stake (PoS) consensus mechanism and employs advanced security practices, such as audits and a bug bounty program, to ensure safety. Key smart contracts manage credit accounts and facilitate interactions with third-party protocols.

What are the potential use cases for Gearbox?

Gearbox can be applied in several scenarios within the DeFi space:

• Margin Trading: Allows leverage trading on platforms like Uniswap.
• Leverage Farming: Users can farm with leverage on platforms such as Curve.
• Leverage Staking: Enhances staking rewards through leverage on platforms like Lido.
• Cross-Protocol Strategies: Facilitates complex strategies using cross-collateral and delta-neutral positions. The protocol sees significant application across the DeFi ecosystem and has partnerships with key protocols, enhancing its reach and use cases.

What is the history of Gearbox?

Gearbox was conceptualised during the ETHGlobal MarketMake hackathon in early 2021 by its founder, Mikael. The project was developed throughout 2021, leading to the publication of a technical paper and the creation of its foundational architecture. Gearbox launched with a DAO-first model and has undergone significant updates, including the release of Gearbox v2. This update introduced advanced features like multicall capabilities and expanded cross-protocol integrations. The project has continued to expand, deploying on Arbitrum Layer 2 to improve efficiency and reduce costs, and plans further expansion to include additional blockchain integrations.