Gearbox is an undercollateralized protocol for margin trading & yield farming focused on gas efficiency. Liquidity providers earn higher APY providing liquidity to pools, while traders or farmers can open virtual accounts and borrow money to trade or farm with x4 leverage. Using virtual accounts, they can trade any assets from the list of pools allowed on popular DEXes (Uniswap, Sushiswap, Curve) or use funds for whitelisted yield farming. All funds are stored on Gearbox contracts, traders and farmers have no direct access to them. Gearbox uses a risk model to continuously assess the quality of a virtual account. If the value of the portfolio converted to the underlying asset is below the liquidation threshold, it can be liquidated with the liquidator’s premium. The protocol’s built on innovative architecture, which makes it extremely gas-efficient, more reliable & hacker-proof.
Gearbox is a new upcoming DeFi protocol showing a lot of promises. The project is really early and still at the development stage as seen on the GitHub repository where we could check the checklist of upcoming features development. The project is being developed by a one-man team, but the developer behind it is well experienced and won multiple notable blockchain development contests. In addition to that, Gearbox was a finalist of MarketMake ETHGlobal hackathon earlier this year, one of the biggest recent hackathons.