what's gearbox protocol?
Gearbox Protocol is a DeFi platform that enables composable leverage, allowing users to access up to 10x credit across various protocols like Uniswap, Curve, and Lido without traditional funding rates. It uses Credit Account abstraction to combine lending and prime brokerage functionalities, supporting margin trading, leverage farming, and liquid staking. The protocol is permissionless, on-chain, and focuses on passive yields and seamless integration with existing DeFi ecosystems. Key features include no impermanent loss for lenders, no lockups, and high APYs on stablecoins across chains like Plasma and Etherlink.
Gearbox facilitates 2-day, zero-slippage 10X mEDGE unstaking and large mEDGE swaps.
contract
ethereum
Supports unstaking of 10X leveraged mEDGE positions in a single transaction with 2-day redemption time and zero slippage, compared to 20-day manual process.
Enables swaps of up to $100K USDC into $1M mEDGE with zero slippage and zero DEX fees through composable credit functionality.
Reduced the liquidation premium to 0.01% for Chaos pool positions holding rstETH that are not closed before the Mellow migration completes.
Lending markets for Reserve Protocol's ETH+ pool on Curve Finance go live, featuring Beefy Finance auto-compounding and Convex Finance staking rewards.
ETH+ from Reserve Protocol becomes the most used collateral in the kpk-curated WETH market with over 1,750 ETH+ (~$5.9M) deployed, surpassing all other Ethereum staking assets.
Stablecoin looping yields on Plasma reach up to 50% APR for PT-syrupUSDT/USDT0, with additional pools at 38% and 30% APR. Savings AUSD/USDC on Monad yields 27.48% APR.
Six vaults deployed across Morpho and Gearbox Protocol manage more than $65M through kpk's automated framework, offering ETH, wstETH, USDC, and EURC risk-adjusted strategies over the past two months.
sAUSD (Savings AUSD) leveraging now available on platform with capacity limits being reached soon, Curve pool already at capacity.
Gearbox launches permissionless lending markets on Somnia Network, a high-throughput L1 blockchain.
Curators list 50+ markets over the last 3 months compared to 42 markets listed in all of 2024, representing a 4X increase in speed to market.
USDC supply pool on Etherlink offers 16.22% APY through Re7USDC product. Monad USDC pool (edgeUSDC) currently shows 12.85% APY.
TVL reaches $25.4M on Monad with $23.3M in USDC pool offering 9.15% APY, ranking 4th among all protocols by total value locked.
The USDC lending pool curated by EdgeCapitalMgmt holds over 25% of all USDC on Monad and is 2.5X larger than the Uniswap liquidity pool.
Becomes the largest lending protocol by TVL on Monad, surpassing $15M within hours of launch.
Protocol's USDC v3 pool on Monad accumulates $11.84M TVL, offering 17% APY through MON reward incentives.
Permissionless lending markets go live on Monad featuring USDC markets by Ultra Yield and MON markets by Tulipa Capital with 1.4 Million weekly MON incentives.
Protocol will deploy on Monad blockchain as a day-one application in the lending category.
Protocol announces it is now ready to provide institutions with RWA-ready lending infrastructure and reaches out to major RWA issuers including Securitize and Superstate for potential collaboration on RWA looping mechanics.
Gearbox Permissionless launches dual-oracle mechanism called Smart Pricing Mechanism that uses two data sources to differentiate between price and value, protecting lenders from oracle exploits and market manipulation by always choosing the lower value when users borrow.
Gearbox Protocol is integrated as one of 24 underlying protocols powering yoETH, a yield-generating product for ETH holders, alongside Origin Protocol and IPOR.
Founder speaking at Onchain Capital Summit in Buenos Aires about permissionless lending rails and TradFi credit access onchain.
Platform integrates ETH+ by Reserve Protocol on Permissionless, enabling a one-click strategy to earn 50% APR with up to 13x leverage on ETH collateral.
Gearbox Permissionless will be Omni-EVM with deployment across multiple EVM-compatible chains.
Protocol announces new capabilities including leverage without DEX liquidity requirement, support for non-tokenised assets, lending for contracts rather than just tokens, and borrower-level isolation for regulatory compliance.
Curator channels launch on the platform to enable direct communication between users and vault curators.
Single user deploys $48 Million+ in leveraged positions on the platform.
Protocol's dynamic risk management saves $30M in potential bad-debt during recent xUSD collapse and maintains three-year track record of zero bad-debt while managing $9B+ in volume across 100+ collaterals.
Announces deployment on Monad network from Day 1 to power permissionless credit across DeFi protocols, and kpk runs curation for ETH markets on the protocol.
Announces upcoming release of human-readable transaction timeline log in coming weeks and plans to incorporate AI to explain market impacts to LPs and borrowers.
kpk_io selects RedStone as oracle provider for its curated vaults, which are live with over $45M in TVL.
Deployed as one of the first protocols on MegaETH network.
Partners with MixBytes (auditor for Lido and Aave) for ongoing security evaluations throughout protocol development, while rsETH integration goes live as collateral in kpk_io's new curated markets.
Risk management actions prevented $30M in bad debt related to xUSD exposure for liquidity providers.
Launches a new suite of permissionless leveraged strategies on Plasma. Disables swapping through Balancer on Permissionless markets and legacy DAO pools as precautionary measure following external security concerns, with protocol and users unaffected.
Maple Finance's syrupUSDC goes live on Gearbox Protocol on Plasma network, enabling yield looping opportunities.
The USDC vault on Etherlink operates at 90% utilization with users looping Curve LP positions (mRE7/USDC and mBASIS/USDC) as collateral to achieve over 100% APR on leveraged positions.
The protocol records its first billion dollar month following user growth and exponential market expansion.
USDC lending yields 24.42% APY on Etherlink with GEAR and applstXTZ rewards for leverage farmers. yoETH adds kpk-curated ETH and wstETH markets as yield sources.
Protocol enables 10X leveraged purchases of Pendle Principal Tokens on Plasma with yields ranging from 21% to 171% APR across five assets (PT sUSDai, PT USDai, PT syrupUSDT, PT sUSDe, PT USDe), curated by Invariant Group through Permissionless pools.
The migration upgrade brings lower borrowing fees, updated risk parameters and collateral tiers, and native withdrawals for Mellow assets.
Migration for leveraged positions goes live, enabling borrowers from ETH and wstETH pools to move to kpk_io Permissionless pools with 4X more opportunities, lower slippage, and GEAR rewards.
rsETH is now accepted as collateral in kpk's curated markets, adding a liquid restaking token to the protocol's supported collateral types.
Stablecoin lending markets launch next week with a new curator, expanding beyond current ETH and wstETH offerings. Protocol implements token buyback mechanism funded by revenue share, with cp0xdotcom joining as additional market curator alongside Karpatkey.
Lending pools curated by karpatkey offer up to 19% APY on wstETH deposits.
Curated ETH and wstETH Earn Pools launch in partnership with Reserve, offering two months of GEAR and ETH+ token incentives.
Migration from DAO-governed to Permissionless pools goes live, allowing ETH and wstETH lenders to migrate to kpk_io pools with over $150K in rewards available for participants.
New ETH lending pools launch with expected competitive rates of 5-10% for lending to loopers of correlated ETH-based assets, while protocol TVL stands at $350M.
During yesterday's extreme market volatility, the protocol processes minimal liquidations totaling less than $250K (0.07% of TVL) across only 4 liquidation events while maintaining 24/7 operations and remaining bad-debt free since 2021.
XPL incentives on Plasma increase to 140K XPL per week, representing an 11X increase since launch, while the platform continues to see million-dollar deposits totaling approximately $1-1.9M.
A $5.5M deposit occurs on the platform with additional large deposits expected the same day.
Plans to integrate Balancer with leverage on Plasma as "Leveraged Balancer," noting that Balancer currently offers the only yield significantly higher than Gearbox according to DeFiLlama data.
Total deposits on Plasma reach $35M with only $3M capacity remaining, while leveraged yields include 200%+ on Principal Tokens, 60%+ on xUSD, 50%+ on Curve, 40%+ on Maple, and 30%+ on Ethena.
GEAR token is now listed on Binance Alpha with a $37M FDV and 100% free float.
In less than 24 hours, over $12M of Principal Tokens have been purchased through the platform, with current PT holdings at $9.6M representing a ~$22M market size; the platform now accounts for 7% of all Pendle PTs on Plasma and 30% of syrupUSDT PTs.
Gearbox Protocol was not included in the arbDRIP program, though APRs on Plasma remain high according to current observations.
The Etherlink USDC pool currently provides 32% APY, an increase from the 21% rate previously available, with historical performance showing >20% APY over the past month.
A massive increase in XPL rewards is coming for lenders on Plasma, creating enhanced yield opportunities for positioning accordingly.
Protocol launches leveraging functionality with $7.65M available to borrow but only $150K currently borrowed, indicating very low initial utilization. Multiple looping strategies are now available including StreamDefi, Curve, DAI, Maple Finance, and Ethena Labs.
USDT0 lending yields 50% on Plasma platform, and Loops feature is launching soon.
Platform launches sUSDf PT maturing January 2026 with 40%+ APR yield and introduces slippage coverage for users rolling over maturing Principal Tokens.
InfiniFi protocol integration with Gearbox-enabled loops is anticipated, potentially expanding leveraged yield farming capabilities across multiple DeFi protocols including Pendle, Morpho Labs, and Ethena.
Permissionless has reached $250M in TVL with 20+ new markets and 5 curators across 4 networks since its March beta launch. The DAO is discussing whether Permissionless should become the primary model for future evolution.
Platform launches on Etherlink offering 21% APY for USDC lending through Apple Farm rewards program, curated by Re7Labs with no lockups or fees.
Gearbox strategies are integrated into Lido's newly launched GG Vault (GGV), an automated DeFi vault alongside protocols like Uniswap, Aave, and Balancer.
New PT.pUSDe product launches in partnership with Strata Money, offering 47% APY with 8X leverage until October 16. Users report 45%+ APR opportunities available on the platform.
Platform facilitates $5M+ in leveraged Principal Token volume over the past month, demonstrating adoption of PT leveraging features.
Head of Crypto at Kalshi prediction market platform highlights potential for bridging prediction markets with lending through permissionless infrastructure.
Four assets on the platform reached $20M+ TVL in 2025 but dropped to near zero after rewards/points programs ended, highlighting sustainability challenges with yield speculation.
The permissionless lending business generates $100K+ ARR alongside the previously reported $15M+ TVL within its first month of operation.
New zero-fee, zero-slippage trading feature with 40X leverage being developed for InfiniFi integration.
Invariant's lending business achieves $15M TVL within first month of launch, demonstrating successful adoption of zero-code permissionless infrastructure with new unified pool architecture and improved borrower-friendly mechanics.
Lido and Steakhouse integrate protocol for their earn products, expanding institutional adoption.
Monthly revenue grows 42% with 25% of revenue now allocated to GEAR LP buyback program. Total TVL exceeds $255M with $26M in fees generated since January 2024.
New Etherlink vault launches with 25.85% APR and $3.12k daily rewards.
New yield farming opportunity offers 44% APY on Curve Finance
Protocol announces exit from beta phase and transition to fully permissionless model, removing DAO curation of pools to accelerate market creation and asset listing process.
Aegis market launches on permissionless platform with YUSD leverage (1.5X points) and USDC lending (3X points) opportunities.
Strata Money integrates with permissionless platform, enabling pUSDe PT leverage and USDC lending opportunities.
TVL surges 230% ($287M) since March Permissionless Beta launch.
Multiple active USDC lending campaigns offer yields ranging from 14-35% APY across Etherlink, Resolv Labs, and FalconStable platforms.
Launches on Etherlink chain with $3M rewards program, enabling passive USDC lending and leveraged positions on Midas RWA's mBASIS and mTBILL assets.
Tulipa Capital USDC Pool joins as new ARK in Higher-Risk Vault, featuring Resolv yield-bearing assets as collateral for expanded lending strategies.
Team conducts week-long institutional outreach in New York for new growth opportunities.
Protocol implements fixed rates and permissionless infrastructure to enable institutional-grade underwriting and real-world finance integration.
Dominates lending protocols with 97% of user points on Mellow/Symbiotic platforms and 20% of Mellow's TVL.
TVL reaches $400M (2.5X increase) with $220M in Lido Instance market; implements 25% LP buybacks program.
Decentralized Validator Vault reaches $100M TVL milestone through collaboration with Lido Finance, Obol Collective, and SSV Network.
Protocol expands to 5 new networks with capability to deploy on 20 additional EVMs permissionlessly.
Protocol achieves 6-month equivalent asset onboarding in 30 days while expanding to more networks than previous year combined.
Leveraged USDf positions now offering 160% APY yield through FalconStable integration
FalconStable integration launches with leveraged staking for Curve USDf LP, Pendle USDf, and sUSDf positions
New Omni-EVM architecture development underway with strategic expansion targeting Gulf Cooperation Council (GCC) markets.
Protocol breaks DeFi leverage record with 40X position and executes $250K zero-slippage swap without DEX liquidity.
New $3M+ reward program launches through Etherlink collaboration with 8-hour accrual and 6-month vesting schedule.
New permissionless system offers 20x+ leverage capability without requiring DEX liquidity or oracles.
New Convex Finance pool launch next week enables exclusive leveraged positions on Convex, expanding protocol capabilities.
New integration on Lisk blockchain enables 10X leverage on wstETH/lskETH with 100K LSK rewards program launch.
New $5.1M whale deposit detected in protocol, indicating continued large-scale capital inflow.
Protocol update removes DEX fees, slippage, and liquidity costs for leveraged LST positions.