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