# Table of Contents - [Overview | Gearbox Protocol](#overview-gearbox-protocol) - [How to add new Contracts & Assets to AllowedList | Gearbox Protocol](#how-to-add-new-contracts-assets-to-allowedlist-gearbox-protocol) - [Credit Accounts | Gearbox Protocol](#credit-accounts-gearbox-protocol) - [What can you do with leverage 2.0? | Gearbox Protocol](#what-can-you-do-with-leverage-2-0-gearbox-protocol) - [Link Tree & Dev Docs | Gearbox Protocol](#link-tree-dev-docs-gearbox-protocol) - [Tech Paper | Gearbox Protocol](#tech-paper-gearbox-protocol) - [Reserve Fund | Gearbox Protocol](#reserve-fund-gearbox-protocol) - [Liquidations | Gearbox Protocol](#liquidations-gearbox-protocol) - [How it works | Gearbox Protocol](#how-it-works-gearbox-protocol) - [Protocol Fees | Gearbox Protocol](#protocol-fees-gearbox-protocol) - [FAQ | Gearbox Protocol](#faq-gearbox-protocol) - [OLD: V1 and V2 | Gearbox Protocol](#old-v1-and-v2-gearbox-protocol) - [Birth at ETHGlobal MarketMake 2021 | Gearbox Protocol](#birth-at-ethglobal-marketmake-2021-gearbox-protocol) - [History: DAO-First Launch | Gearbox Protocol](#history-dao-first-launch-gearbox-protocol) - [AllowedList: Integrations | Gearbox Protocol](#allowedlist-integrations-gearbox-protocol) - [Kovan testing with DegenScore & lobsterdao | Gearbox Protocol](#kovan-testing-with-degenscore-lobsterdao-gearbox-protocol) - [Credit Account Mining | Gearbox Protocol](#credit-account-mining-gearbox-protocol) - [Early Testers and Discord | Gearbox Protocol](#early-testers-and-discord-gearbox-protocol) - [Margin Trading: PURE | Gearbox Protocol](#margin-trading-pure-gearbox-protocol) --- # Overview | Gearbox Protocol [NextLink Tree & Dev Docs](/links) Last updated 1 year ago Was this helpful? Gearbox Protocol brings you composable leverage. It allows anyone to margin trade on Uniswap, leverage farm on Curve, leverage liquid stake on Lido, leverage restake with EigenLayer derivatives, and use 10X more capital on protocols you already love. Making decentralized leverage a reality thanks to Credit Account abstraction, bringing together lending and prime brokerage in the same protocol! See . > The leverage you get with Gearbox doesn't get isolated inside its own pools. No perpetuals in here. Your trades and farms are executed with the global $6B+ DEX liquidity on other protocols. > > Composable & modular! Gearbox Protocol has two user sides to it: [](#cool-features) **Cool Features** ----------------------------------------- With V3, Gearbox Protocol has become cooler. It has its own **multicall** for complex 1-click transactions, **smart router** automated routing, **integrations** with Curve + Yearn + Convex + Lido + Maker, segmented pools, **organic rates**, **isolated risks**, and more... * **Modularity.** Gearbox Protocol is not just a couple of pools, it's an entire architecture of smart contracts which are plug-and-play enabled. Depending on use cases and risk segmentation, different protocol parts can be reassembled to enable those. * **Composability.** Gearbox does not have its own order book or trading environment. The leverage you get - is used across multiple DeFi protocols and assets, fully composable! * **0% Funding Rates**. The leverage offered is not based on derivative positions but is instead executed with real assets on third-party protocols. Because Gearbox does not create its own perps, there is no short/long ratio that needs to be maintained with funding rates. * **Permissionless.** Positions and trades within Credit Accounts can be extended to include complex strategies and delta-neutral or hedging strategies. YOU decide! In fact, you can make all of these complex things easy to interact with, by using Gearbox's unique multicall features. ### [](#decentralized-at-heart) Decentralized at heart * **Non-custodial.** CEXes subjectively define leverage parameters and also keep custody of your funds. With Gearbox, you are always in control of your funds. It's all transparent. * **Community-driven.** Gearbox Protocol does not have a company responsible for the protocol or on-chain actions. The goal is to make the protocol work based on how the community wants it. * From _day 0_ the focus has been on community-first [History: DAO-First Launch](/overview/launch-phases) . _MarketMake ETHGlobal 2021 hackathon finalist_ 🎆 * * * ### [](#where-is-the-dao-how-can-i-contribute) **Where is the DAO, how can I contribute?** Gearbox is a DAO, run by various contributors and initiatives. The protocol and assets are never in custody of any one single person. You can be in a DAO but not be 24/7 active, which is okay. There are different ways to get involved and get rewarded for your time and skills. See more: Lenders deposit assets to , single-asset, no impermanent loss. Meanwhile, leverage users borrow these assets to create spot leverage positions, which can be used across DeFi, NFTs, RWA, etc. That could be margin trading on Uniswap, farming on Curve and Balancer, leverage staking on Lido, running delta-neutral complex strategies, and more. YOU decide. All of that is made possible with Gearbox’s abstraction. The core vision is to become a **leverage / credit layer**. You can envision building your own DeFi protocol and just making a “take leverage with Gearbox” as a button. And _bam_ - your users are now more capital efficient. Check this page to understand why . **Leverage as a Service.** Other protocols can offer leverage to their users with the help of Gearbox Protocol, without modifying anything in their own architecture. They can even engage in the by staking GEAR and making rates for their own protocols more competitive. [earn passive yield](/lending-market/manage-liquidity) [Credit Account](/overview/credit-account) [composable leverage 2.0 is cool](/what-can-you-do-with-leverage-2.0) [how it works](/overview/how-it-works) [![Logo](https://blog.gearbox.fi/content/images/size/w256h256/format/png/2023/08/symbol--on-white-.svg)Gearbox Protocol V3: The Onchain Credit LayerGearbox Protocol Blog](https://blog.gearbox.fi/gearbox-protocol-v3-the-onchain-credit-layer/) [![Logo](https://gearboxprotocol.notion.site/images/logo-ios.png)Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.Notion](https://gearboxprotocol.notion.site/gearboxprotocol/Gearbox-DAO-Working-Sheet-23966f122ae4421492819242b30a0e7a) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FQDbqttqdqBGsjZsvn7wQ%252FGearbox%2520onchain%2520credit%2520primitive%2520composable%2520leverage.png%3Falt%3Dmedia%26token%3D493fda67-fc68-484f-bce5-2f6fc54517a9&width=768&dpr=4&quality=100&sign=e21b7f94&sv=2) [Gauge Wars](/governance/quotas-and-gauges#gauges) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-MgVlVmYjjagTWvBVeA6%252F-MgVtA5cwxFz3qQ8j_ct%252FIMG_7234.PNG%3Falt%3Dmedia%26token%3D688a6885-3695-4038-861f-1a067bcfe303&width=768&dpr=4&quality=100&sign=9520ebd9&sv=2) --- # How to add new Contracts & Assets to AllowedList | Gearbox Protocol [PreviousOLD: V1 and V2](/overview/credit-account/allowedlist-integrations/old-v1-and-v2) [NextLiquidations](/overview/liquidations) Last updated 1 year ago Was this helpful? Composability is at the heart of Gearbox Protocol's ethos as well as its modular architecture. It's imperative to grow the Allowed List Policy to allow traders & farmers to create composable positions across DeFi and other sectors. While the protocol is growing, there are some technical boundaries in place with regard to things like oracles when it comes to assets as well as contracts - to understand those better, please see some wishlist for Gearbox DAO below. If it checks out, go ahead and ask DAO to add it! * Discord chat to ask tech questions is . If you would like to have an adapter and believe you don't have enough resources to build it yourself, please just ping on Discord & let's collab together on a grant to have an external or internal developer help with such a task! Cooperation is welcome :-) This article can give you an insight on how you can potentially access a collateral / protocol: Dev docs will help you fully understand the architecture: GitHub repositories can show you examples of live integrations: [](#add-new-contracts-protocols) Add new Contracts / Protocols ------------------------------------------------------------------- #### [](#technical-requirements) Technical Requirements * (preferably) The Protocol should have at least two external audit reports. * (preferably) Adapter for the Protocol should have at least one external audit report. * (preferably) The Protocol should be at least 2 months from the launch and 2 months without security incidents. * (preferably) The protocol should be non-custodial. * Integrations should be made using ERC-20 token in the middle. It could be LP token of Protocol (or in the case of absence LP tokens, should be created separate ERC-20 token that represents user’s position in Protocol). Later on, more standards can be added to expand. Please propose. * It’s good if methods how LP token can be priced (via using internal/external oracle / using smart contract interface like pricePerShare for Yearn Vaults) are described in the application. * It is also necessary to show why the price cannot be manipulated and/or describe how to mitigate such risks. It is good to describe how the withdrawal of funds from the protocol works: is it instantaneous, whether funds are locked there, for what period. #### [](#step-by-step-process) Step by step process 1. Create a discussion on Discord Forum. * (preferably) include links to the code of the Adapter to integrate with external protocol. If there are none, the discussion can be continued, but any other actions can be made after someone (community, post author etc) provide link to Adapter implementation. * (preferably) include links to external audit of Adapters. If there are none, the discussion can be continued, but the vote can be submitted only after receiving the audit report. [](#add-new-assets-tokens) Add new Assets / Tokens ------------------------------------------------------- #### [](#technical-requirements-1) Technical Requirements * It should be an ERC20 token. * (preferably) not possible to pause tokens fully or freeze individually. * (preferably) fee-on-transfer and rebase tokens to be avoided. * (preferably) the token must be liquid and have big depth on the secondary markets, specifically DEXes. This is one of the protections against the domino effect. Risk requirements: * Volatility should be low enough to get leverage. Current approach is the following: 1. Check 5 Min max price drop for the last 12 months. Health value is less than 20%. 2. See parameters of this token on notable DeFi money markets / lending services and whether liquidators manage to eliminate positions in this token with such parameters (if applicable). * Liquidity should be enough to be able to liquidate positions. * Optimal distribution of tokens (number of holders, distribution of tokens, unlocking schedule). #### [](#step-by-step-process-1) Step by step process 1. Create a discussion on Discord Forum inside "discussions" tab. Preferably, the first post should include data of token volatility for the last 1 year and of token liquidity. 2\. After initial discussions it is possible to go through the . (required) Must have a or for the token. As you might have guessed, this is the oracle system Gearbox Protocol uses on Ethereum and in its current version. After initial discussions it is possible to go through the . Prior to a proposal, feel free to ping on and ask for help! [standard governance process](/governance/setup) [chainlink price feed oracle](https://docs.chain.link/docs/ethereum-addresses/) [Redstone price feed oracle](https://app.redstone.finance/#/app/tokens) [standard governance process](/governance/setup) [Discord](https://discord.gg/JssNVvxscK) [here](https://discord.gg/JZgvmaenwn) [![Logo](https://dev.gearbox.fi/images/favicon.ico)Hello from Gearbox Protocol Developer Docs | Gearbox Protocol Developer Docs](https://dev.gearbox.fi/) [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)Risk Committee: DAO’s framework for accessing assets & contractsMedium](https://medium.com/gearbox-protocol/risk-committee-daos-framework-for-accessing-assets-contracts-3d4deea83537) [![Logo](https://github.com/fluidicon.png)GitHub - Gearbox-protocol/integrations-v3GitHub](https://github.com/Gearbox-protocol/integrations-v3) --- # Credit Accounts | Gearbox Protocol [PreviousHow it works](/overview/how-it-works) [NextAllowedList: Integrations](/overview/credit-account/allowedlist-integrations) Last updated 1 year ago Was this helpful? A Credit Account is an isolated smart contract which contains both the user funds and the borrowed funds. This is where your leverage is. After you open an account, all the operations go through this account and the assets stay on it as well. You can see a Credit Account as your automated leveraged DeFi wallet where you not only keep positions, but can also program it the way you want. > Every user has their own Credit Account. Funds on a Credit Account are used as collateral for debt, and users can operate these funds by sending orders to their Credit Accounts. That could be: margin trading on Uniswap or Sushiswap; leverage farming on Yearn; arbitraging pegged assets on Curve, and more! [](#allowed-list-policy) Allowed List policy ------------------------------------------------- Operations available to users are restricted by two policies: * **Allowed contracts list**. Users can interact through Credit Accounts only with contracts from this list to mitigate risks that funds will be sent to vulnerable smart contracts. * **Allowed tokens list**. This allows managing risks of swapping funds to highly-volatile assets whose price could drastically fall after a swap and before a liquidation would take place. Another attack vector is a user creating some dummy ERC20 and then buying it on, let's say' Uniswap - and essentially draining capital from Gearbox Protocol. Gearbox architecture is very modular, so it's not just that there is an allowed asset for the entire protocol - there are different pools and **can even be multiple pools for the same asset**. There can be **different Credit Managers with different AllowedList policies**, etc. The information below is just an easy-to-grasp understanding for product users. Developers should dive into the tech section in Gearbox Dev docs and understand the intricacies. * Pool * Credit Manager * allowed assets * allowed contracts * Credit Accounts [](#low-overhead-on-gas) Low Overhead on Gas ------------------------------------------------- Due to the architecture and design of Gearbox Protocol being modular, users each have their own Credit Account(s) instead of executing trades via a giant joint pool of liquidity with virtual balances of each user (how protocols usually do). Therefore, the gas costs overhead is minimized. Next to that, Credit Accounts are not deployed by users every time as separate smart contracts, but are "borrowed" from the protocol by users like if you were to get an Uber: you use a car and then give it back once finished. This way, the deployment costs are kept to zero for new users. Both policies are managed by and can grow to enable more assets and protocol. [governance](/governance/setup) [AllowedList: Integrations](/overview/credit-account/allowedlist-integrations) [![Logo](https://firebasestorage.googleapis.com/v0/b/gitbook-28427.appspot.com/o/spaces%2F-MTW5vYjW5AmfzJsI9yS%2Favatar-1613323473886.png?generation=1613323474119715&alt=media)Gearbox ProtocolGearbox Dev](https://dev.gearbox.fi) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-MgWyr8wlN09MUbwfV8h%252F-MgXNoXAeduMAq-5Q5sV%252FScreenshot%25202021-08-07%2520at%252022.49.38.png%3Falt%3Dmedia%26token%3D7b1898e4-8373-4000-b028-0eda07a16e67&width=768&dpr=4&quality=100&sign=8f309662&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-MgWyr8wlN09MUbwfV8h%252F-MgXRYAFfzG4XeOmkoTW%252FScreenshot%25202021-08-07%2520at%252023.07.53.png%3Falt%3Dmedia%26token%3D9cb9c67a-7e7f-47c2-9ab4-aca29fe55680&width=768&dpr=4&quality=100&sign=281f71d5&sv=2) --- # What can you do with leverage 2.0? | Gearbox Protocol [PreviousLink Tree & Dev Docs](/links) [NextHow it works](/overview/how-it-works) Last updated 1 year ago Was this helpful? 1. Margin trading on Uniswap, Curve, and other real spot DEXes: see . 2. Leverage farming stablecoins, ETH, and many delta-neutral strategies. . 3. Leverage restaking and leverage points specifically. See here. ### [](#how-is-gearbox-different-from-other-leverage-farming-trading-protocols) How is Gearbox different from other leverage farming-trading protocols? > Gearbox Protocol allows you to do portfolio margining (prime brokerage) and deploy leverage on other protocols you already love. Different collaterals, different strategies - all at once or isolated, that's up to you how to do it. You can trade and farm from the same Credit Account, you can make composable positions, run delta-neutral strategies, etc. It's not about just a short-long, and not about a vault that does some trivial tasks for you... it's about being able to potentially **leverage anything**. We are turning leverage into a primitive for everyone! A credit layer infrastructure. The way we are used to leverage is having a _"short BTC" button_ on an exchange, where you put your assets as collateral and get a liquidation price. You can then manage leverage or closing the position. That's fine, everyone knows it, but then... that's it? Feels too restricted. Feels very web2. _Your position is just sitting there and you can't utilize the collateral. Not good..._ ### [](#but-what-if-you-could-do-more-with-leverage) _**...but what if you could do more with leverage?**_ Gearbox Protocol doesn't just give you 2 buttons "long" or "short". It gives you more capital to work with, which then you decide where to deploy it. The leverage you get with Gearbox doesn't get isolated inside its own pools. No perps in here! Only PURE spot assets. > Your trades and farms are executed with the global DEX liquidity of other protocols. For example, you can get **an ETH short or long + that is farming at the same time**. Other things you can do: * Leveraged Farming: stablecoins, staked ETH, and more. You can go as high as 10x. * Basis Trading: short/long on Gearbox with no funding rates, meanwhile doing the opposite elsewhere. You can pocket the difference in rates delta-neutral. * Arbitrage of correlated assets with leverage, over mid to long time frames, and more... You decide leverage, where to use it, how to trade and when. There are no vaults or pre-made strategies, you can manage it however you want within the permissions. > Imagine having x10 the funds in your account abstraction wallet and doing things the same way you are used to. Supercharging your Metamask wallet with 10x, essentially... That's our goal! **Gearbox is your leveraged DeFi wallet.** **Continue doing what you love, but with more capital ❤** This also **reimagines how undercollateralized loans can work**, because such a system can potentially calculate on-chain values of many things, be it: tokens you trade, LP positions, your reputation score if it's liquid, your vested investments, NFTs, RWA, and so on. Gearbox only limits you within the boundaries of security () to make sure funds are not syphoned out. Apart from that, you as a user decide what complex strategies and trades you want to execute with Gearbox leverage. You are in charge! [Boosted Long/Short or "Free Leverage"](/traders-and-farmers/margin-trading-pure/long) [Leverage Farming](/traders-and-farmers/strategies) [assets and protocols integrated](/overview/credit-account/allowedlist-integrations) [PURE](/traders-and-farmers/margin-trading-pure) [See here](/traders-and-farmers/strategies) You basically get a short which then makes you money yield farming, and the yield farming LP tokens you can potentially utilize for something else. The lego building blocks can all happen within Credit Accounts! ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FSxB6epzKxEtiwjMG91YD%252Fgearbox%2520leveraged%2520wallet.png%3Falt%3Dmedia%26token%3D15f4fcba-8798-4366-bff4-3bc1a985145d&width=768&dpr=4&quality=100&sign=dc1aa356&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FMXCPXyonBlrJBDHqQb3A%252FScreenshot%25202021-10-19%2520at%252000.41.47.png%3Falt%3Dmedia%26token%3Dd284aa79-202a-4c0f-b99d-72050d24335b&width=768&dpr=4&quality=100&sign=17e12587&sv=2) --- # Link Tree & Dev Docs | Gearbox Protocol [PreviousOverview](/) [NextWhat can you do with leverage 2.0?](/what-can-you-do-with-leverage-2.0) Last updated 4 months ago Was this helpful? #### [](#dev-information) Dev Information * GitHub: * Developer docs: * Monitoring Tool: #### [](#dapps) dApps * Farming dApp: * Analytics charts: * Older V2 interface: #### [](#socials-and-dao) Socials and DAO * Main website: * Discord 👾 * Forum (in Discord): * Telegram: * Twitter: * Blog: * DAO Voting: * **Notion** where DAO initiatives and expenditures are reported: [https://github.com/Gearbox-protocol](https://github.com/Gearbox-protocol) [https://dev.gearbox.fi/](https://dev.gearbox.fi/) [https://risk.gearbox.foundation/updates](https://risk.gearbox.foundation/updates) [https://app.gearbox.fi/](https://app.gearbox.fi/) [https://charts.gearbox.finance/](https://charts.gearbox.finance/) [https://v2.gearbox.fi/](https://v2.gearbox.fi/) [https://gearbox.fi/](https://gearbox.fi/) [https://discord.com/invite/gearbox](https://discord.com/invite/gearbox) [https://discord.com/invite/gearbox](https://discord.com/invite/gearbox) [https://t.me/GearboxProtocol](https://t.me/GearboxProtocol) [https://twitter.com/GearboxProtocol](https://twitter.com/GearboxProtocol) [https://blog.gearbox.fi/](https://blog.gearbox.fi/) [https://snapshot.org/#/gearbox.eth](https://snapshot.org/#/gearbox.eth) [https://gearboxprotocol.notion.site/gearboxprotocol/Gearbox-DAO-23966f122ae4421492819242b30a0e7a](https://gearboxprotocol.notion.site/gearboxprotocol/Gearbox-DAO-23966f122ae4421492819242b30a0e7a) [![Logo](https://gearboxprotocol.notion.site/images/logo-ios.png)Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.Notion](https://gearboxprotocol.notion.site/Gearbox-DAO-23966f122ae4421492819242b30a0e7a) Notion pages set up to streamline DAO initiatives and contributions. --- # Tech Paper | Gearbox Protocol [PreviousProtocol Fees](/overview/protocol-fees) [NextFAQ](/overview/faq) Last updated 1 year ago Was this helpful? The paper below is not as elaborate as the user docs and the dev docs, but if you like LATEX (not the leather costumes, not here) - then enjoy this quick mathematical writeup: --- # Reserve Fund | Gearbox Protocol [PreviousLiquidations](/overview/liquidations) [NextProtocol Fees](/overview/protocol-fees) Last updated 1 year ago Was this helpful? accrue in form in , instead of idle assets like in most other protocols. As a result, Treasury itself becomes a passive lender to the pools. This is like re-supplying liquidity to keep growing - by default - while other protocols usually need to make a separate transaction to turn their idle assets into productive working LP positions. By default, accrued fees are used to cover losses of the pools in case a the Credit Account is closed with a loss for the pool (bad or untimely liquidation). In such cases, Gearbox Protocol automatically burns its part of the Treasury’s dTokens - restoring the rate of . This way, it acts as Reserve Fund that automatically compensates liquidity providers’ losses up to the level it can. By default, all fees that the DAO receives from the protocol are made in dTokens. However, DAO can manage this by unwrapping part of the funds from the pools (thus, instead of dTokens, DAO will receive the usual underlying asset of the pool aka idle assets). This way, the DAO can limit its earnings from the Reserve Fund exposure. Essentially, the Gearbox dTokens inside this Fee Guard are the Insurance Fund. Anything that is not in dTokens has likely been voted to be unwrapped and kept as non Insurance Fund. Any non-dTokens are not counted towards the Insurance Fund size. And this only applies to V3 contracts. > This address holds all the fees accumulated. However, on the topic of the Reserve Fund, only look at the balances of dTokens. No other assets are relevant to the Reserve Fund. This Reserve Fund model doesn't relate to actual software hacks. It specifically covers cases of under-collateralization due to incorrect liquidations. See what there are. [Protocol fees](/overview/protocol-fees) [https://debank.com/profile/0x3e965117a51186e41c2bb58b729a1e518a715e5f](https://debank.com/profile/0x3e965117a51186e41c2bb58b729a1e518a715e5f) [risks](/risk-and-security/risks-terms#protocol-technical-disclosure) [dTokens](/lending-market/pools-and-apy#pool-tokens-staked-diesel-tokens) [Diesel Tokens](/lending-market/pools-and-apy#what-is-a-diesel-token) --- # Liquidations | Gearbox Protocol [PreviousHow to add new Contracts & Assets to AllowedList](/overview/credit-account/how-to-add-new-assets-protocols) [NextReserve Fund](/overview/liquidations/insurance-fund) Last updated 1 year ago Was this helpful? #### [](#how-does-the-protocol-ensure-over-collaterization-while-allowing-users-leveraged-operations) How does the protocol ensure over-collaterization while allowing users leveraged operations? When doing leverage with Gearbox, your becomes the collateral for external protocols/actions: both your initial funds and the borrowed amount you got from the protocol. Gearbox Protocol sees which tokens your portfolio consists of and can determine its value at all times, which are always calculated in the underlying borrowed asset which you opened that Credit Account in. Gearbox uses a risk model to continuously assess the quality-value of a Credit Account. For each Credit Account, it computes its health factor**.** Anyone can check the health factor and liquidate positions with a health factor less than 1. As a user with a leverage position, you need to watch out for your health factor. Having it just above 1 puts you in risk of getting liquidated. Learn how to avoid liquidations. Learn about the current fee model a user pays in case of a liquidation: ### [](#what-is-a-health-factor) What is a Health Factor? where _b(t)_ is borrowed amount. Let's dive into some math formulas to clarify how computation of the health factor works. ### [](#total-value) Total Value Represents the Credit Account's balance in the underlying asset. where c\_i - balance of i-th asset in credit account, p\_i - price of i-th asset calculated in underlying asset(from oracle). ### [](#threshold-weighted-value) Threshold Weighted Value where: Q\_i - Quota amount for i-th asset in Credit Account (see [Quotas and Gauges](/governance/quotas-and-gauges) section), ### [](#liquidation-threshold) Liquidation Threshold Liquidation thresholds represents maximum allowable ratio of Loan-To-Value for the i-th asset (LTV is reciprocal of over-collaterization ratio of i-th asset). LT\_i for underlying asset is constant and equals: **How is Liquidation Threshold defined?** Gearbox Protocol uses statistics of 5-min, 15-min, 1h change of i-th asset's price (price is in the underlying asset) for the last 180 days. Health Factor is a numeric representation of your account health. If your health factor drops below 1 or close to it, you might be liquidated. The higher the number is, the safer you are. There are some tips on how you can avoid liquidations, . Hf(t)\=TWV(t)b(t)+interest  accrued(t),H\_{f}(t) =\\frac{TWV(t)}{b(t) +interest\\;accrued(t)}, Hf​(t)\=b(t)+interestaccrued(t)TWV(t)​, TV(t)\=∑  ci(t)∗pi(t),TV(t)=\\sum{\\;c\_i(t)\*p\_i(t)},TV(t)\=∑ci​(t)∗pi​(t), TWV(t)\=∑min(Qi(t),  ci(t)∗pi(t)∗LTi)TWV(t)=\\sum{min(Q\_i(t),\\;c\_i(t)\*p\_i(t)\*LT\_i) } TWV(t)\=∑min(Qi​(t),ci​(t)∗pi​(t)∗LTi​) c\_i - balance of i-th asset in credit account, p\_i - price of i-th asset calculated in underlying asset(from oracle), LT\_i - liquidation threshold, the credit account manager constant showing the maximum allowable ratio of for the i-th asset**.** LTU\=100%−Liquidation  Premium−Liquidation  FeeLT\_U =100\\% - Liquidation\\;Premium -Liquidation\\;FeeLTU​\=100%−LiquidationPremium−LiquidationFee Anybody can run a liquidator bot and secure the protocol. You can chat about setting up your bot and other liquidator-things in . [How to avoid liquidations](/traders-and-farmers/credit-account-dashboard-overview/kak-ne-byt-rekt) [Protocol Fees](/overview/protocol-fees) [check them here](/traders-and-farmers/credit-account-dashboard-overview/kak-ne-byt-rekt) [Loan-To-Value](https://www.investopedia.com/terms/l/loantovalue.asp) [Discord](https://discord.gg/wmydr8JfcP) [Credit Account](/overview/credit-account) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FA8206BrYcK4xLt33vcsw%252FScreenshot%25202021-10-18%2520at%252021.48.21.png%3Falt%3Dmedia%26token%3Dfdadfc26-30a1-4e8c-9388-380eee994733&width=768&dpr=4&quality=100&sign=1aa28a76&sv=2) --- # How it works | Gearbox Protocol [PreviousWhat can you do with leverage 2.0?](/what-can-you-do-with-leverage-2.0) [NextCredit Accounts](/overview/credit-account) Last updated 1 year ago Was this helpful? Gearbox protocol has two sides to it: * **Passive lenders:** **asset** **lenders** who seek passive yield and prefer lower risks. This can be seen similar to providing liquidity to Compound and getting cTokens back. Lenders' assets are utilized by others, for which they get APY. Any one can be a liquidity provider on Gearbox. . * **Borrowers** - **active** **traders, farmers, and even protocols** who wish to increase their position by borrowing liquidity from the protocol at multiples of their collateral. The liquidity they borrow can be 10x of what their notional size is. This is the leverage power! . [](#core-parts-of-gearbox-protocol) Core Parts of Gearbox Protocol ----------------------------------------------------------------------- **Gearbox does not silo the assets within its protocol.** All trades and farming operations happen on third-party protocols: Uniswap, Curve, Yearn, etc. **Your assets never end up in custody of any one person or company**. As such, Gearbox Protocol is not a trading platform / protocol. The protocol does not have its own order books, or control the secondary market liquidity. Therefore, there are no funding rates. Integrations possibilities are very broad, as Gearbox is built with composability at its core: The liquidations are based on the **health factor and the threshold weighted value**: * * * [](#modular-architecture) Modular Architecture --------------------------------------------------- Gearbox protocol has a modular architecture. The main logic is encapsulated in the core layer which supports operations for both protocol sides. It allows connecting customized pools with Credit Account managers without changing the internal codebase, and thus simplifying integrations. The goal of Gearbox is to be integrated with existing and new protocols in an open-source manner and provide leverage across many user bases and products. Because of its modularity, leverage can be given to even long-tail assets without increasing passive lending side risks. There could be segmentation of risks, personalized rates, collateral limits, and other mechanisms which allow modularity to shine and Gearbox to service different user groups. That could be farming, trading, sophisticated LP-ing, NFT and RWA leveraging, and so on. See a more detailed developer explanation: One of the key aspects which actually makes this DeFi primitive possible are (and Credit Managers), which “bind” together lenders and borrowers in this equation. More specifically, a Credit Account is an isolated smart contract (like a leveraged smart contract wallet) that holds user + borrowed funds, has liquidation thresholds, and **has a list of** (in order to avoid attack vectors from malicious actors, like borrowing leverage and buying a self-created ERC20 token; or sending an amount to a malicious smart contract). The positions which traders and farmers take should be liquidated by third-party before the assets of liquidity providers would start being exposed to the downside. As such, the protocol returns the liquidity providers’ assets to the pools if all functions correctly and liquidators do their job. This is how Gearbox is able to provide composable leverage. The protocol for different operations, where a part goes to and part to different protocol operations. All parameters and spending depend on . Learn more: [Credit Accounts](/overview/credit-account) [liquidators](/overview/liquidations) [Liquidations](/overview/liquidations) [takes fees](/overview/protocol-fees) [Reserve Fund](/overview/liquidations/insurance-fund) [governance](/governance/setup) [Protocol Fees](/overview/protocol-fees) [See how](/lending-market/manage-liquidity) [See how](/traders-and-farmers/strategies) [Credit Accounts](/overview/credit-account) [Architecture – Nextrashuding\_](https://dev.gearbox.fi/credit/architecture) [**Allowed Tokens and Protocols**](/overview/credit-account#allowed-list-policy) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252Fx2SKkEbs8hzcN24oe2Eo%252FGearbox%2520Modular%2520Architecture%2520Intents.png%3Falt%3Dmedia%26token%3Dc893cd2d-da2e-4cb6-9a84-f167c6b7445b&width=768&dpr=4&quality=100&sign=7cc9906b&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-MgWyr8wlN09MUbwfV8h%252F-MgXODxd9eH4KT1AVu66%252FScreenshot%25202021-08-07%2520at%252022.53.18.png%3Falt%3Dmedia%26token%3D26ac83c1-cb36-4fe3-84f1-e1bc1d3c35fa&width=768&dpr=4&quality=100&sign=6b68a83&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-MgWyr8wlN09MUbwfV8h%252F-MgXNu8nbeFevE8-GP1t%252FScreenshot%25202021-08-07%2520at%252022.49.59.png%3Falt%3Dmedia%26token%3Dc939ba81-786e-4460-9726-244f86bc4c2f&width=768&dpr=4&quality=100&sign=9058ec56&sv=2) --- # Protocol Fees | Gearbox Protocol [PreviousReserve Fund](/overview/liquidations/insurance-fund) [NextTech Paper](/overview/whitepaper) Last updated 1 year ago Was this helpful? 1. All protocol fees that DAO earns go to the . Nothing is assumed for the core contributors or the foundation. The protocol is fully operated by holders. The fees, collected in dTokens, automatically become a . 2. Because Gearbox is modular, fees are not the same everywhere. They can be different from one Credit Manager to another, depending on the integrations inside. 3. Most of the fees are static and are voted in via the , however, are voted on separately onchain every epoch by . ### [](#liquidation-fee) **Liquidation Fee** _Goes only to the DAO._ If a Credit Account is liquidated, some percentage goes to a third-party liquidator who liquidated the account - and some percentage goes to Gearbox Protocol. These fees can vary from one Credit Manager to another, depending on how safe the margin for liquidation error should be. * Fee going to the liquidator: depends on the . 3-4%. * Fee going to the protocol: depends on the . 1-1.5%. ### [](#base-apy-rate) Base APY Rate _Split between passive lenders and the DAO._ The protocol takes spread as a fee between the APY which lenders receive and the fee & farmers pay for borrowing their assets. The exact value of this fee is calculated as following: * Borrowers pay borrow APY to liquidity providers and pay spread fee to DAO spreadFee. That means effective borrow rate for borrowers is calculated as r(u)\*(1+spreadFee). DAO receives r(u)\*spreadFee. ### [](#gauges-quota-apy-rate) Gauges: Quota APY Rate _Split between passive lenders and the DAO._ Gauges help apply an extra quota interest rate applied to every different asset separately. Every asset your Credit Account has on its balance sheet - demands a separate extra quota interest rate to be paid. It is taken per-block just like the regular interest rate. This rate is voted on separately from the main DAO voting and is not static. It changes every epoch with gauges voted by GEAR stakers: ### [](#quota-rate-flat-fee) Quota Rate: Flat Fee _Goes only to the DAO._ This fee is similar to a trading fee, but not fully. It is applied whenever you buy a quota. That can happen when entering a position for the first time, rebalancing (trading) into different assets inside the already open position, or when increasing your leverage or borrowing power. You can see this as a credit line: you open a credit line for a fixed amount at first, and then you can to increase or decrease it. Whenever you trade or increase/decrease leverage - the interfaces help you manage the quota at the optimal ratio. These fees are also different from one Credit Manager to another. For example, a 0.01% fee can be taken for an ETH long/short, while a 0.03% could be taken for medium-tail assets. For example: * Then, you don't trade into anything but that $100K position grows in value and you want to make sure its bigger size (the surplus) is counted towards Health Factor. Let's say it appreciated by $10K. You pay only on that $10K difference. That would be $1 in this case. * Alternatively, you decide to trade a part of that $100K into different assets of the same position size. As such, you pay another specific fee for entering into every different asset. Let's say those assets' quota fees are 0.03% and 0.05%. That means you pay $26 in this case. That is why you can kind of see it as a trading fee, but the second example provided above shows that it's not always about trading. **It's about "buying quota allocation" or "extending credit line".** For the exact math behind the fees and the split, see Tech Paper: Each pool has it’s interest rate curve. This interest rate curve represents borrow APY that lenders receive as a function of pool’s utilization r(u). See details and formulas in . Let's say, you open a position where you end up with $100,000 worth of ETH long or an ETH farm token, for example, . As such, you pay that specific fee on the entry into this position (buying a quota for it). For example, at 0.01% that is just $10. [tech paper](/overview/whitepaper) [Quotas and Gauges](/governance/quotas-and-gauges) [leverage staking](/traders-and-farmers/strategies/leveraged-liquid-staking) [Tech Paper](/overview/whitepaper) [Reserve Fund unless unwrapped](/overview/liquidations/insurance-fund) [main governance process](/governance/setup) [Gauges](/governance/quotas-and-gauges) [GEAR stakers](/gear-token/utility-and-staking) [Credit Manager](/overview/credit-account/allowedlist-integrations) [Credit Manager](/overview/credit-account/allowedlist-integrations) [fee guard](/governance/setup/guards-multisigs#fee-temporary-guard-5-10) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252Fu0zA4Nq9Bq6k4wPlp4Sm%252FScreenshot%25202023-12-08%2520at%252011.40.56.png%3Falt%3Dmedia%26token%3D50bf1f4f-cba4-4e38-9359-d9e5f7714aa8&width=768&dpr=4&quality=100&sign=56c944e&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FJirftSwGYfjExF69zylG%252FScreenshot%25202023-12-08%2520at%252011.51.40.png%3Falt%3Dmedia%26token%3Db09dcbfe-9b13-4cc7-af50-0effb3f870a7&width=768&dpr=4&quality=100&sign=900c59c5&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FMekGUpr5Avzzeapsywvd%252FScreenshot%25202023-12-08%2520at%252012.11.26.png%3Falt%3Dmedia%26token%3D9572c60c-bda5-4860-85d9-ce860c32d4cf&width=768&dpr=4&quality=100&sign=463925a9&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FTR9TYiuCtC9pcEWoqd0n%252FScreenshot%25202023-12-08%2520at%252012.00.12.png%3Falt%3Dmedia%26token%3D0f9f2525-07d5-4011-a593-83f71cf01f65&width=768&dpr=4&quality=100&sign=1c1f68e3&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252F1P20GCWPfqSu9GZSc1p8%252FScreenshot%25202024-01-02%2520at%252011.14.23.png%3Falt%3Dmedia%26token%3D7e5b4e87-660c-49e8-8e91-e3f265ae9b31&width=768&dpr=4&quality=100&sign=5e17a9b6&sv=2) --- # FAQ | Gearbox Protocol [PreviousTech Paper](/overview/whitepaper) [NextHistory: DAO-First Launch](/overview/launch-phases) Last updated 1 year ago Was this helpful? This section can help you find answers to the most common questions. The other answers you can likely find by reading the page names of the docs on the left, each section explaining the topics. More complex and in-depth user questions are on the . * Where is the GEAR token contract and vestings? - . * Funding rounds and early backers? - at the bottom of the page . * Is the team anon? Who are DAO contributors? - at the bottom of the page . * What is GEAR token utility, can I stake it? - . * How does the DAO work and how to join an initiative? - . * How much capital does the treasury have and where does it go? - . * How to add new collateral / protocol? What is the framework? - . * What does Gearbox Protocol do? - bro, you are in the docs, read up <3 Do you feel like some question is missing? ! #### [](#what-fees-am-i-paying) **\- What fees am I paying?** Since Gearbox Protocol has two sides to it, the fees you are paying depend on what user type you are. **If you are a passive lender, there is no fee**. What you see is what you get, no added fees. If you are a leverage user, you are paying a borrow interest fee (which fluctuates depending on ) + which are also dynamic + . The latter you pay only if you are liquidated. All fees are configurable by , see [Protocol Fees](/overview/protocol-fees) . #### [](#what-are-dtokens-like-dusdc-and-dwbtc) \- What are dTokens like dUSDC and dWBTC? Diesel Tokens are like cTokens of Compound. These tokens automatically earn interest & fees proportional to your share of the pool or Yearn LP tokens. You don’t need to claim interest or perform any other actions, your Diesel Tokens value is supposed to grow. V3, in order to give rewards to passive lenders, stakes those dTokens into the staking contracts, so you get sdTokens. The underlying doesn't change at all, it happens just so you get rewards. #### [](#will-my-apy-for-supplying-liquidity-go-down-or-up) \- Will my APY for supplying liquidity go down or up? #### [](#what-is-a-health-factor-and-what-can-i-do-with-it) \- What is a Health Factor and what can I do with it? #### [](#san-i-always-withdraw-liquidity) \- Сan I always withdraw liquidity? Conceptually, yes. Depending on the utilization ratio of pools though, if it is high - not all the liquidity can be withdrawn at once. It doesn't mean that the protocol lost money or is insolvent - it's just that the liquidity is utilized in Credit Accounts. In such cases where available liquidity is low (which you can check in the app analytics page per pool) - the APY goes higher as to attract more capital providers and attempt to find an equilibrium. This is more or less standard among all lending-type protocols and has happened both in Compound & Aave before. _Gearbox DAO can adjust the utilization curve parameters to force certain behavior of the protocol in case weird situations occur._ #### [](#why-cant-i-borrow-more) \- **Why can't I borrow more?** As the protocol has max leverage and max personal borrow parameters, which are configurable by DAO, there is a limited amount you can borrow for leverage. As such, borrowing above that amount is technically not possible. Once a Credit Account is open, you can add more collateral to increase your position size and Health Factor, but you can't borrow to infinity for security purposes. Those shall be updated every now and then after voting, in [Credit Accounts](/overview/credit-account) . #### [](#will-gearbox-protocol-be-on-other-chains-l2-rollups-evm-compatible) \- **Will Gearbox Protocol be on other chains/L2/rollups/EVM-compatible?** Gearbox Protocol is DAO-operated, so it should be a joint community decision. That's one. If users need Gearbox - it's fine to deploy anywhere, because we have user-first approach. #### [](#why-does-a-trade-even-from-stable-to-stable-decrease-my-hf-health-factor) \- Why does a trade even from stable to stable decrease my HF (health factor)? The APY is variable and depends on the formula which is configurable by . It also depends on Quota Rates. The interface makes it all simple, details can be found in [Protocol Fees](/overview/protocol-fees) . is a numeric representation of your account's health. If your health factor drops below 1 or close to it, you might be liquidated. The higher the number is, the safer you are. Since liquidations make you incur higher fees, make sure to follow . Due to how are calculated taking into account a possible price drop and a price feed tick, a stablecoin is not actually a stablecoin for the protocol contracts. They are not 1:1. Stablecoins tend to de-peg, which must be taken into account. This keeps the protocol more secure, but also causes _max leverage_ parameter to be lower. As such, this is up to the risk appetite of Gearbox DAO to decide on such things. Check for more context. [**PRO Leverage Bible page**](/traders-and-farmers/pro-leverage-bible) [here](https://docs.gearbox.finance/gear-token/gear-overview) [here](https://gearboxprotocol.notion.site/Gearbox-DAO-23966f122ae4421492819242b30a0e7a) [here](/gear-token/utility-and-staking) [here](https://gearboxprotocol.notion.site/DAO-Initiatives-Cycles-57dea693c7f44c3d9d4d818e5b0ac88b) [here](https://gearboxprotocol.notion.site/Monthly-Reports-6849871a9bae44dfb903531c0a997e8f) [here](https://docs.gearbox.finance/overview/credit-account/how-to-add-new-assets-protocols) [Send it on Discord](https://discord.com/invite/gearbox) [Quotas](/governance/quotas-and-gauges) [DAO](/governance/setup) [like cTokens on Compound](https://compound.finance/docs/ctokens) [DAO](/governance/setup) [tips on how to not get liquidated](/traders-and-farmers/credit-account-dashboard-overview/kak-ne-byt-rekt) [PRO Leverage Bible](/traders-and-farmers/pro-leverage-bible) [liquidation fees to the protocol and a liquidator](/overview/protocol-fees#trader-farmer-fees) [Health Factor](/overview/liquidations#what-is-a-health-factor) [Threshold Weighted Values](/overview/liquidations#threshold-weighted-value) [utilization ratio](/lending-market/pools-and-apy#how-to-calculate-apy) [utilization ratio](/lending-market/pools-and-apy#how-to-calculate-apy) [here](/gear-token/supply-information#early-backers-and-dao-round-2022) --- # OLD: V1 and V2 | Gearbox Protocol [PreviousAllowedList: Integrations](/overview/credit-account/allowedlist-integrations) [NextHow to add new Contracts & Assets to AllowedList](/overview/credit-account/how-to-add-new-assets-protocols) Last updated 1 year ago Was this helpful? Gearbox architecture is very modular, so it's not just that there is an allowed asset for the entire protocol - there are and **can even be multiple pools for the same asset**. There can be **different Credit Managers with different Allowed List policies**, etc. The information below is just an easy-to-grasp understanding for product users. Developers should dive into the tech section in docs and understand the intricacies. Namely, the tree goes as follows: * Pool * Credit Manager * allowed assets * allowed contracts * Credit Accounts If you want to check and see the list of currently and old deployed contracts, go here: [](#gearbox-v2.1-december-2023) Gearbox V2.1 December 2023 --------------------------------------------------------------- ### [](#allowed-contracts-list) Allowed Contracts List * sUSD and its related assets (Convex) have been disabled; * GUSD and its related assets (Convex) have been disabled. Pool LP Token Address Curve ETH+stETH Convex Curve ETH+stETH Curve FRAX+3Crv Convex Curve FRAX+3Crv Curve 3pool (DAI+USDC+USDT) Convex 3pool (DAI+USDC+USDT) Curve LUSD+3Crv Convex Curve LUSD+3Crv Curve DAI+USDC+USDT+sUSD Convex Curve DAI+USDC+USDT+sUSD Curve GUSD+3Crv Convex Curve GUSD+3Crv USDC yVault DAI yVault WETH yVault WBTC yVault Curve stETH Pool yVault Curve FRAX Pool yVault ### [](#allowed-assets-list) Allowed Assets List * sUSD and its related assets (Convex) have been disabled; * GUSD and its related assets (Convex) have been disabled. Token USDC DAI WETH wstETH WBTC FRAX WETH 85 85 94.5 90 85 85 stETH 82.5 82.5 90 94.5 82.5 82.5 WBTC 85 85 85 85 94.5 85 USDC 94.5 92 82.5 82.5 82.5 92 DAI 92 94.5 82.5 82.5 82.5 92 USDT 90 90 82.5 82.5 82.5 94.5 sUSD \- \- \- \- \- \- FRAX 90 90 82.5 82.5 82.5 90 gUSD \- \- \- \- \- \- LUSD 90 90 82.5 82.5 82.5 90 steCRV 82.5 82.5 90 90 82.5 82.5 cvxsteCRV 82.5 82.5 90 90 82.5 82.5 stkcvxsteCRV 82.5 82.5 90 90 82.5 90 FRAX3CRV-f 90 90 80 80 80 90 cvxFRAX3CRV-f 90 90 80 80 80 90 stkcvxFRAX3CRV 90 90 80 80 80 90 3Crv 90 90 80 80 80 90 cvx3Crv 90 90 80 80 80 90 stkcvx3Crv 90 90 80 80 80 90 LUSD3CRV-f 90 90 80 80 80 90 cvxLUSD3CRV-f 90 90 80 80 80 90 stkcvxLUSD3CRV 90 90 80 80 80 90 crvPlain3andSUSD 90 90 80 80 80 90 cvxcrvPlain3andSUSD \- \- \- \- \- \- stkcvxcrvPlain3andSUSD \- \- \- \- \- \- gusd3CRV \- \- \- \- \- \- cvxgusd3CRV \- \- \- \- \- \- stkcvxgusd3CRV \- \- \- \- \- \- FraxUsdc 90 90 80 80 80 90 yvDAI 90 90 80 80 80 90 yvUSDC 90 90 80 80 80 90 yvWETH 82.5 82.5 90 90 80 82.5 yvWBTC 82.5 82.5 80 80 90 82.5 yvCurve-stETH 82.5 82.5 90 90 82.5 82.5 yvCurve-FRAX 90 90 80 80 80 90 CVX 25 25 25 25 25 25 FXS 25 25 25 25 25 25 LQTY 0 0 0 0 0 0 CRV 25 25 25 25 25 25 LDO 0 0 0 0 0 0 SNX 25 25 25 25 25 25 * * * [](#history-older-versions-in-words) History: older versions in words -------------------------------------------------------------------------- ### [](#gearbox-v2.1-september-2023) Gearbox V2.1: September 2023 Gearbox V2.1 was released in June'23, the update was largely focused on improving the security of the codebase. With DeFi exploits on the rise, it was crucial to upgrade and fortify the security of the codebase. Moreover, with V3 being built over the existing codebase, it enabled the DAO to battle test the V3 codebase even before it's deployment. It improved security 4 ways: * Removed access mechanisms for adapters that had lower utility * Introduced bad debt prevention parameters * Identified and fixed possible existing bugs * Improved Account security at UI and operational level You can read the complete details in the articles below: ### [](#gearbox-v2-november-2022) Gearbox V2: November 2022 Gearbox V2 upgrade took place in October'22 and led to a $120M+ TVL increase. Post V1s usage, it became abundantly clear that the users are more interested in using Gearbox for Leveraged Farming than trading. V2 was thus born out of the effort to increase the avenues to leverage farm and provide a better user experience to the leverage farmers. With V2, the DAO expanded it's integrations with: * Curve Pools * Convex Pools * Yearn Vaults * Lido Staking This led to 14 more strategies becoming available to the users to leverage farm on. At the same time though, V1 required users to hop through multiple protocols to deploy a position. V2 was built with UX and ease of use in mind. This was brought on by: 1. **Multicall:** Multicall enabled users to open CA, perform required swaps, deploy in farm and receive LP tokens in a single transaction. While the farming happened natively on the integrated protocol, the need to leave Gearbox UI or click multiple buttons was removed. 2. **Up to 10x Leverage:** V1 offered leverage up to 4x, this was upgraded by V2 with pools being able to offer as much as 10x leverage. This increased the max APYs a pool could produce significantly. The 2 factors together enabled V2 to bring leveraged farming to life. You can read more about it in the article below. You can also browse around Medium to find more info on the older V2. ### [](#gearbox-v1-december-2021) Gearbox V1: December 2021 The information about V1 Credit Managers \[Allowed List of contracts & assets\] was scraped out from the docs to not confuse new users. Those CMs are still on-chain and exist, but only with the option to trade out of CA positions and close, not borrow or open new ones. [https://link.medium.com/QQOUYIVfcFb](https://link.medium.com/QQOUYIVfcFb) [https://link.medium.com/qdcKyjUfcFb](https://link.medium.com/qdcKyjUfcFb) [different pools](/lending-market/pools-and-apy) [Gearbox Dev](https://dev.gearbox.fi/) [![Logo](https://dev.gearbox.fi/images/favicon.ico)Hello from Gearbox Protocol Developer Docs | Gearbox Protocol Developer Docs](https://dev.gearbox.fi/) [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)Product Evolution V2. Gearbox Protocol from 1 to 2: Going Further!Medium](https://medium.com/gearbox-protocol/product-evolution-v2-gearbox-protocol-from-1-to-2-going-further-dcedf3b5d959) [0x06325440D014e39736583c165C2963BA99fAf14E](https://etherscan.io/address/0x06325440D014e39736583c165C2963BA99fAf14E) [0x9518c9063eB0262D791f38d8d6Eb0aca33c63ed0](https://etherscan.io/address/0x9518c9063eB0262D791f38d8d6Eb0aca33c63ed0) [0xd632f22692FaC7611d2AA1C0D552930D43CAEd3B](https://etherscan.io/address/0xd632f22692FaC7611d2AA1C0D552930D43CAEd3B) [0xbE0F6478E0E4894CFb14f32855603A083A57c7dA](https://etherscan.io/address/0xbE0F6478E0E4894CFb14f32855603A083A57c7dA) [0x6c3F90f043a72FA612cbac8115EE7e52BDe6E490](https://etherscan.io/address/0x6c3F90f043a72FA612cbac8115EE7e52BDe6E490) [0x30D9410ED1D5DA1F6C8391af5338C93ab8d4035C](https://etherscan.io/address/0x30D9410ED1D5DA1F6C8391af5338C93ab8d4035C) [0xEd279fDD11cA84bEef15AF5D39BB4d4bEE23F0cA](https://etherscan.io/address/0xEd279fDD11cA84bEef15AF5D39BB4d4bEE23F0cA) [0xFB9B2f06FDb404Fd3E2278E9A9edc8f252F273d0](https://etherscan.io/address/0xFB9B2f06FDb404Fd3E2278E9A9edc8f252F273d0) [0xC25a3A3b969415c80451098fa907EC722572917F](https://etherscan.io/address/0xC25a3A3b969415c80451098fa907EC722572917F) [0x11D200ef1409cecA8D6d23e6496550f707772F11](https://etherscan.io/address/0x11D200ef1409cecA8D6d23e6496550f707772F11) [0xD2967f45c4f384DEEa880F807Be904762a3DeA07](https://etherscan.io/address/0xD2967f45c4f384DEEa880F807Be904762a3DeA07) [0x15c2471ef46Fa721990730cfa526BcFb45574576](https://etherscan.io/address/0x15c2471ef46Fa721990730cfa526BcFb45574576) [0xa354F35829Ae975e850e23e9615b11Da1B3dC4DE](https://etherscan.io/address/0xa354F35829Ae975e850e23e9615b11Da1B3dC4DE) [0xdA816459F1AB5631232FE5e97a05BBBb94970c95](https://etherscan.io/address/0xdA816459F1AB5631232FE5e97a05BBBb94970c95) [0xa258C4606Ca8206D8aA700cE2143D7db854D168c](https://etherscan.io/address/0xa258C4606Ca8206D8aA700cE2143D7db854D168c) [0xA696a63cc78DfFa1a63E9E50587C197387FF6C7E](https://etherscan.io/address/0xA696a63cc78DfFa1a63E9E50587C197387FF6C7E) [0xdCD90C7f6324cfa40d7169ef80b12031770B4325](https://etherscan.io/address/0xdCD90C7f6324cfa40d7169ef80b12031770B4325) [0xB4AdA607B9d6b2c9Ee07A275e9616B84AC560139](https://etherscan.io/address/0xB4AdA607B9d6b2c9Ee07A275e9616B84AC560139) --- # Birth at ETHGlobal MarketMake 2021 | Gearbox Protocol [PreviousHistory: DAO-First Launch](/overview/launch-phases) [NextKovan testing with DegenScore & lobsterdao](/overview/launch-phases/kovan-testing-with-degenscore) Last updated 1 year ago Was this helpful? **Jan-Feb 2021** came up with the idea and took it to the finals of . The idea at first was to make a Uniswap leverage trading engine. It was considered to be undercollateralized lending as it allowed users to operate with more funds than they owned themselves. Looking back, this already wasn't the case as users would never have access to those funds directly. It was already bigger... ### [](#first-contributors-getting-together) First Contributors Getting Together **Feb 2021** came across the project as a possible investment and shared it with . After the first call they got so impressed with the idea and had such good vibes that they actually started working together. They quickly got into the rhythm and kept improving the initial vision, the architecture, the product strategy, etc. **Mar 2021** After getting the architecture and math together, core builders reached out to DeFi founders and builders across the space. Many have positively responded and fell in love with the narrative. They gave feedback on the product, on the competitive advantages, on the way to best approach the user base... those were the first external contributors - about 20 people continuing to help Gearbox develop from every angle. ### [](#getting-ops-and-plans-in-order) Getting Ops & Plans in Order **Apr-July 2021** This was the time when the architecture took changes, audits started happening, and product testing began in their raw form. The question of the most applicable launch strategy and positions has also appeared. Many operational things in the background needed fixing before starting a community. The tech paper was finalized, the contracts were frozen for the first audits, and integration discussions started. ### [](#seeding-the-information-about-gearbox) **Seeding the Information about Gearbox** **August - November 2021** Once the decision was reached to remove all control from the core contributors, initial governance model and distribution of voting had to be designed. Learning from many DAOs in the space (especially voter apathy and plutocracy issues) - a was chosen to go live with. But before letting the community take control over something, they should know what they are laying their hands on, right! This means educating as many developers as possible on the architecture, the use cases, the possibilities to get involved and take control. Which, next to content, it implied product testing. Then, the protocol was tested. The improvements have been made on the feedback of hundreds of testers. They became the next contributors of the Gearbox protocol. And it was time to let them and other DeFi builders take control over the protocol. To remove the power from the hands of the previous developers and turn Gearbox from a passionate project to a fully-accessible live protocol. [Mikael](https://twitter.com/mikaellazarev) [ETHGlobal MarketMake 2021 hackathon](https://showcase.ethglobal.co/marketmake/gearbox-protocol) [Ilgiz](https://twitter.com/apeir99n) [ivangbi](https://twitter.com/ivangbi_) [governance model](/governance/setup) --- # History: DAO-First Launch | Gearbox Protocol [PreviousFAQ](/overview/faq) [NextBirth at ETHGlobal MarketMake 2021](/overview/launch-phases/birth-at-ethglobal-marketmake-and-first-contributors) Last updated 1 year ago Was this helpful? _Gearbox is not just a product. Gearbox is a protocol, a DeFi primitive._ The liquidity and trading are not siloed within the protocol. The goal is to be composable and open. And if that is the case, so should be the information and control over the protocol! This page is dedicated to the historical events about how Gearbox has progressed to launch. ### [](#initial-core-members-and-contributors) Initial core members and contributors January - August 2021: getting the tech paper, architecture, and everything together. August-November 2021: educating the community to prepare to ship control over the protocol. As well as audits and security testing for the core contracts prior to launch in December 2021. See how the product has evolved over 2021 while being tested: ### [](#dao-taking-over-december-2021) DAO Taking Over - December 2021 The DAO-first launch model was proposed during ETHGlobal Online event. You can watch the long version of the presentation on youtube, starting from 2:49:15. What is the TLDR for DAO-first? It's that the previous "team" (initial core members) ship the code open-source and retain no control over the protocol even from day -1. That's right: not deciding on collaterals, not deciding on allowed policy list, etc. **All of that goes through the DAO voting and multisig implementing it, where previous team and contributor votes / signatures are a minority**. #### [](#id-1.-token-distribution-and-genesis-contracts-deployment) 1\. Token distribution and genesis contracts deployment In order to have the community take over and be able to operate the protocol, the initial distribution had to be done in a very diverse way: committed contributors & coders, initial users who took their time to analyze the protocol and help improve it, and so on. After all, these are the holders who will be deciding the future of Gearbox! For example, honoring early community: At this stage, most of the core contracts were deployed but were open-sourced just yet. Only the ones necessary for this stage to be verified. The tokens were by default not transferrable by anyone except the distributor. Later on, DAO could make a decision to make tokens transferrable, or decide to never do it. #### [](#id-2.-credit-account-mining) 2\. Credit Account Mining This was one of the stages related to token distribution for the community side. With a twist! A designated list of wallets, that took part in governance of many other protocols previously, could pay gas costs on mainnet to deploy one account per wallet - and receive fixed amount of GEAR. The snapshot was taken and discussed with the community to analyze for the traits of sybil in other protocols. The list could not be perfect, but it's about making sure that the majority of real members could take part, even if some botting could occur. Learn all about it: #### [](#id-3.-treasury-multisig-and-technical-multisig-or-delegators) 3\. Treasury Multisig & Technical Multisig | Delegators The roles of multisigs were set up to a financial-treasury one (receiving protocol fees, paying grants, holding DAO portion of GEAR tokens) and a technical one (implementing technical changes according to outcomes of voting, setting up parameters, and executing other technical protocol tasks). Both multisigs were voted in by the diverse list of token holders - assigned up to this stage. Technical multisig naturally has a higher signer majority count. Delegates were set up at this stage to streamline community work & power. At this point, the initial core team no longer had control over the protocol. The community took over all of the operations and had the major vote and handled further operations. Initial core team stops existing as a concept, and DAO takes over as the main boss. #### [](#id-4.-voting-for-pools-parameters-and-allowed-lists) 4\. Voting for pools, parameters, and allowed lists #### [](#id-5.-final-deployment-and-launch-on-mainnet) 5\. Final deployment and launch on mainnet You can see that overall the distribution of took place across several phases! You see, users need to rent from Gearbox Protocol when accessing composable leverage. Why? Because deploying and throwing away SC every time is a costly and sad procedure. But so is deploying 5,000 isolated smart contracts - it's very costly... and it's not fun to do it just as core team! Thus, a more engaging community-inspired model was designed. Core members were not in charge of deciding of what assets and protocols are first to be on Gearbox . Every financial parameter (collaterals, assets, protocols, liquidation thresholds, other parameters) were to be decided by the DAO with a minimum quorum. The discussions included forum proposals for temperature check, followed by snapshot page voting. Technical multisig took over all the decisions of the step 4 and implemented them in . All the contracts were open-sourced and verified on Etherscan. The protocol was deployed and launched. Ahhhh i am a governooooor... but for real, ! Let's build together <3 [Early Testers and Discord](/overview/launch-phases/early-drop) [GEAR](/gear-token/supply-information) [Credit Accounts](/overview/credit-account) [Credit Account Mining](/overview/launch-phases/credit-account-mining) [Guards \[Multisigs\]](/governance/setup/guards-multisigs) [code](https://twitter.com/mikaellazarev/status/1473322250149539842?s=20) [join and contribute](/governance/setup) [GOVERNANCE | DAO](/governance/setup) [Birth at ETHGlobal MarketMake 2021](/overview/launch-phases/birth-at-ethglobal-marketmake-and-first-contributors) [Kovan testing with DegenScore & lobsterdao](/overview/launch-phases/kovan-testing-with-degenscore) [AllowedList](/overview/credit-account#allowed-list-policy) [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)Product Evolution from an idea to an app: 0 to 1. Contributors united!Medium](https://medium.com/gearbox-protocol/product-evolution-from-an-idea-to-an-app-0-to-1-contributors-united-832154e3c7ba) [https://etherscan.io/address/0x20da9f3d7d5cb96c2822338830cfd6dee6d508d8etherscan.io](https://etherscan.io/address/0x20da9f3d7d5cb96c2822338830cfd6dee6d508d8) Gearbox Core V1 Deployer [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)GEAR Token \[not yet live\] and Governance: Reverse Voting EscrowMedium](https://medium.com/@gearboxprotocol/gear-token-not-yet-live-and-governance-reverse-voting-escrow-75f367985397) [![Logo](https://discord.com/assets/ec2c34cadd4b5f4594415127380a85e6.ico)Join the Gearbox Protocol Discord Server!Discord](https://discord.com/invite/jJuABVH9Pg) That's it. The rest is history. GLHF! --- # AllowedList: Integrations | Gearbox Protocol [PreviousCredit Accounts](/overview/credit-account) [NextOLD: V1 and V2](/overview/credit-account/allowedlist-integrations/old-v1-and-v2) Last updated 1 year ago Was this helpful? Composability of Gearbox Protocol is possible via forever-increasing list of Allowed Tokens and Allowed Contracts. By allowing users to access more trade routes, deposits, farms, interactions - the of Gearbox Protocol can really shine! Conceptually, Gearbox has developed integrations for: Uniswap, Sushiswap, Convex, Yearn, Curve, Balancer, Aura, and some others. However, when it comes to farming or LPing - an integration wih a protocol doesn't mean all of its assets and pools. That is because many protocols have non-generalized pools, with different price oracles required for each, and so on. See V3 code in here to give you a glimpse: Also, Gearbox architecture is modular, so it's not just that there is an Allowed Asset for the entire protocol - there are different pools and **can even be multiple pools for the same asset**. There can be **different Credit Managers with different Allowed List policies**, etc. Developers should dive into the tech section in Gearbox Dev docs and understand the intricacies. It goes like this: * Pool * Credit Manager * allowed assets * allowed contracts * Credit Accounts The AllowedList is basically a permission box, but within that box - all the actions are permissionless. You decide how to apply leverage, where to apply it, how to trade assets and when. There are no vaults or pre-made strategies here, you can manage it however you want within the Allowed List permissions. Extended dApp can be easier for complex operations. You can, of course, also manage it all fully onchain with your own infrastructure! Please check the onchain contracts for the latest, as below might be updating with delays. ### [](#creditmanager-trade-usdc-tier-1) CreditManager Trade USDC Tier 1 Asset Liquidation Threshold USDC 94.5% WETH 90% WBTC 90% STETH 90% DAI 90% USDT 90% yvWETH 87% yvWBTC 87% 3Crv 0% crvUSDTWBTCWETH 0% steCRV 0% sDAI 90% yvUSDC 90% yvDAI 90% ### [](#creditmanager-trade-usdc-tier-2) CreditManager Trade USDC Tier 2 Asset Liquidation Threshold USDC 94.5% WETH 90% DAI 90% USDT 90% MKR 82.5% UNI 82.5% LINK 82.5% LDO 82.5% ### [](#creditmanager-trade-usdc-tier-3) CreditManager Trade USDC Tier 3 Asset Liquidation Threshold USDC 94.5% WETH 90% DAI 90% USDT 90% FRAX 90% CRV 72.5% CVX 72.5% FXS 72.5% APE 72.5% crvCVXETH 0% crvUSDETHCRV 0% crvUSD 0% ### [](#creditmanager-farm-usdc) CreditManager Farm USDC Asset Liquidation Threshold USDC 94.5% WETH 90% DAI 90% USDT 90% FRAX 90% sDAI 90% yvUSDC 90% yvDAI 90% stkcvxcrvUSDUSDC 87% stkcvxcrvUSDUSDT 87% stkcvxcrvUSDFRAX 87% stkcvxcrvFRAX 87% CRV 72.5% CVX 72.5% crvUSDUSDC 0% cvxcrvUSDUSDC 0% crvUSDUSDT 0% cvxcrvUSDUSDT 0% crvUSDFRAX 0% cvxcrvUSDFRAX 0% crvFRAX 0% cvxcrvFRAX 0% 3Crv 0% crvCVXETH 0% crvUSDETHCRV 0% crvUSD 0% \# Pool Trade WBTC v3: ### [](#creditmanager-trade-wbtc-tier-1) CreditManager Trade WBTC Tier 1 Asset Liquidation Threshold WBTC 94.5% WETH 90% USDC 90% USDT 90% STETH 90% DAI 90% yvWETH 87% sDAI 87% yvUSDC 87% 3Crv 0% crvUSDTWBTCWETH 0% steCRV 0% yvWBTC 90% ### [](#creditmanager-trade-wbtc-tier-2) CreditManager Trade WBTC Tier 2 Asset Liquidation Threshold WBTC 94.5% USDC 90% WETH 90% DAI 90% USDT 90% MKR 82.5% UNI 82.5% LINK 82.5% LDO 82.5% crvUSDTWBTCWETH 0% ### [](#creditmanager-trade-wbtc-tier-3) CreditManager Trade WBTC Tier 3 Asset Liquidation Threshold WBTC 94.5% USDC 90% WETH 90% DAI 90% USDT 90% FRAX 90% CRV 72.5% CVX 72.5% FXS 72.5% APE 72.5% crvCVXETH 0% crvUSDETHCRV 0% crvUSD 0% crvUSDTWBTCWETH 0% \# Pool Trade WETH v3: ### [](#creditmanager-trade-weth-tier-1) CreditManager Trade WETH Tier 1 Asset Liquidation Threshold WETH 94.5% USDC 90% WBTC 90% STETH 90% DAI 90% USDT 90% yvUSDC 87% yvWBTC 87% sDAI 87% 3Crv 0% crvUSDTWBTCWETH 0% steCRV 0% yvWETH 90% ### [](#creditmanager-trade-weth-tier-2) CreditManager Trade WETH Tier 2 Asset Liquidation Threshold WETH 94.5% USDC 90% DAI 90% USDT 90% MKR 82.5% UNI 82.5% LINK 82.5% LDO 82.5% ### [](#creditmanager-trade-weth-tier-3) CreditManager Trade WETH Tier 3 Asset Liquidation Threshold WETH 94.5% USDC 90% DAI 90% USDT 90% FRAX 90% CRV 72.5% CVX 72.5% FXS 72.5% APE 72.5% crvCVXETH 0% crvUSDETHCRV 0% crvUSD 0% ### [](#creditmanager-farm-weth) CreditManager Farm WETH Asset Liquidation Threshold WETH 94.5% WBTC 90% USDT 90% STETH 90% rETH 90% weETH 90% osETH 90% yvWETH 90% stkcvxcrvUSDETHCRV 85% stkcvxcrvUSDTWBTCWETH 85% auraB\_rETH\_STABLE\_vault 87% CRV 72.5% CVX 72.5% BAL 0% AURA 0% SWISE 0% crvUSDETHCRV 0% cvxcrvUSDETHCRV 0% crvUSDTWBTCWETH 0% cvxcrvUSDTWBTCWETH 0% B\_rETH\_STABLE 0% auraB\_rETH\_STABLE 0% steCRV 0% crvUSD 0% crvCVXETH 0% rETH\_f 0% ### [](#creditmanager-restaking-weth) CreditManager Restaking WETH Asset Liquidation Threshold WETH 96% weETH 91.5% ezETH 91.5% rETH 0% rETH\_f 0% If you want to check and see the list of deployed contracts, go here: [composability](/what-can-you-do-with-leverage-2.0) [![Logo](https://github.com/fluidicon.png)GitHub - Gearbox-protocol/integrations-v3GitHub](https://github.com/Gearbox-protocol/integrations-v3/) [![Logo](https://dev.gearbox.fi/images/favicon.ico)Hello from Gearbox Protocol Developer Docs | Gearbox Protocol Developer Docs](https://dev.gearbox.fi/) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FjEO5obEH2BdThZdHeDTn%252Fgearbox%2520integrations.png%3Falt%3Dmedia%26token%3D6e1f76e5-954a-4830-9466-a29375f84045&width=768&dpr=4&quality=100&sign=147a30f8&sv=2) --- # Kovan testing with DegenScore & lobsterdao | Gearbox Protocol [PreviousBirth at ETHGlobal MarketMake 2021](/overview/launch-phases/birth-at-ethglobal-marketmake-and-first-contributors) [NextCredit Account Mining](/overview/launch-phases/credit-account-mining) Last updated 1 year ago Was this helpful? Initial testing period is now over. A version will be kept available on Kovan for new users to come and test w/o having to incur high mainnet gas fees. Info TBD, stay tuned. Please see this page to learn if you got some GEAR allocated to you for being an awesome member! Snapshot was taken at , December 7. This was the time to give the app into the hands of the most tech-savvy DeFi users: to test the user flow, to understand how degens think, to realize how to improve further... Gearbox is not a company. Gearbox is not just a product. **Gearbox is a protocol, a DeFi primitive.** But before Gearbox is able to become a composable leverage protocol, a _chicken-and-egg_ problem must be solved: getting liquidity providers as well as traders & farmers to the protocol. This is done with the product approach, see below! Code InviteDegenScore Apeslobsterdao 2+ The codes could be found across Discord, Twitter, or by trying to find contributors and early developers in Paris - where some codes were given in July 2021. It was an exclusive batch, and was given to the most relentless DeFi users from across different communities. DegenScore Citadel and the most vicious DeFi traders could get access to the beta on Kovan. The starting number was at about 700 and then was slightly reduced to allow more testers in. These apes are some of the most savvy users who really could help test the app before the launch. The app already contains **HELP (?)** in the bottom right that you can click on for tips. So to make the experience as real as possible - or rather, less degraded - we did the following: * We made new contracts for DAI, WBTC, USDC, and other tokens in order to be able to seed liquidity into Uniswap V2, Uniswap V3, and Sushiswap pools. Have we not done that, any trade would essentially have the slippage at over 10% and make the testing absolutely impossible. * You could request from the faucet 4 main assets. There was a separate tab for it. * We made our own arbitrage bot to make trading a bit more realistic, and to also keep the prices among those newly created assets more real. * We made our own liquidation bot which could simulate liquidation if HF was going < 1. > This was exciting to build! And helped us understand the protocol even better. [](#kovan-testing-step-by-step) Kovan Testing Step-By-Step --------------------------------------------------------------- To really test the product, it's better to have users try all the options in different sessions and explore the app in ways which can only be done with having a larger tester base. So here are some instructions: 1. **Start!** Go to the faucet. At least get ETH as you'd need it for gas costs. 2. Try to supply or withdraw liquidity on the "Earn" page. Check those transactions in the block explorer. 3. Open your first Credit Account with the collateral of your choice. 4. Try to make some trades, see how the slippage works, see how your health factor changes. 5. Try to change slippage permissions and AMM for execution. 6. Try Wallet Connect feature and execute some trades on native apps of other protocols. 7. Try to open a new Credit Account in another collateral. 8. Try to borrow more if possible or add more collateral. 9. Check your health factor and other stats again. 10. Try to close your Credit Account with either of the options presented. Here is some information that can help get to your issue as fast as possible: * include the link to the page where the issue occurred; * include a screenshot to best explain your issue; * include browser specifications. The instructions are specifically not more clear than this, because the goal is to see how you as a new user would interact and understand the app. That should eventually not require an extra user guide or instructions - but it does at the beginning. **Again, thank you & LFG!** As Kovan is not a live environment, it's harder to run DeFi tests on it. Andre . The liquidity is fragmented and not every protocol is deployed. For a protocol like Gearbox, which puts composability at its core and thus depends on other protocols to function as a lego house, it was a challenge! It can very well happen that your trade doesn't go through and gives a mistake, or while closing the account it reverts you back. These issues are caused by lack of liquidity on Kovan or maybe by the testing revealing some mistakes in the app logic. Naturally, it's better to know about all of them in advance. So, please, still do ! ! Send the bugs, what you liked or disliked about the app, what things worked poorly, what was not clear, and so on. Please be explicit. The work is done for now! Well done ⚙️📦 [said it before](https://www.reddit.com/r/yearn_finance/comments/j2fz77/why_developer_andre_cronje_tests_in_prod/) [report them](https://discord.gg/pj7xSrp8WE) [**Tell in Discord about your experience**](https://discord.gg/pj7xSrp8WE) [Kovan block 28668076](https://kovan.etherscan.io/block/28668076) [Early Testers and Discord](/overview/launch-phases/early-drop) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2Fmedia.giphy.com%2Fmedia%2FVbAFrrDVGAvZu%2Fgiphy.gif&width=768&dpr=4&quality=100&sign=2fc3c7d7&sv=2) [![Logo](https://app.gearbox.fi/favicon/android-chrome-512x512.png)Gearbox ProtocolGearboxProtocol](https://app.beta.gearbox.fi/) [![Logo](https://discord.com/assets/ec2c34cadd4b5f4594415127380a85e6.ico)Join the Gearbox Protocol Discord Server!Discord](https://discord.com/invite/pj7xSrp8WE) A dedicated Kovan test stage channel. ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-Mgm6A6w_sM_L9--PPah%252F-MgmCSUj9YGNDH5eFFvr%252FScreenshot%25202021-08-11%2520at%252000.36.00.png%3Falt%3Dmedia%26token%3D8b91a089-8369-4c72-b377-2d78df598324&width=768&dpr=4&quality=100&sign=ab9585f6&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-legacy-files%2Fo%2Fassets%252F-MV2P3lqKrTIf58BQE1v%252F-Mgm6A6w_sM_L9--PPah%252F-MgmCXu1cmqcdMMgYw0V%252FScreenshot%25202021-08-11%2520at%252000.35.47.png%3Falt%3Dmedia%26token%3Df709d2fc-9914-4df1-a234-8972134d7519&width=768&dpr=4&quality=100&sign=4e88d4ce&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FK7ryIuZxfT4RiduezuGN%252FIMG_5997.PNG%3Falt%3Dmedia%26token%3D577c92e8-3334-4e4b-a3d0-2757ac5db9c4&width=768&dpr=4&quality=100&sign=c703a1a2&sv=2) --- # Credit Account Mining | Gearbox Protocol [PreviousKovan testing with DegenScore & lobsterdao](/overview/launch-phases/kovan-testing-with-degenscore) [NextEarly Testers and Discord](/overview/launch-phases/early-drop) Last updated 1 year ago Was this helpful? One of the coolest Gearbox DAO launch parts is here! **TLDR: deploy a piece of the protocol by paying gas fees => get GEAR tokens in return.** ### [](#how-the-ceremony-was-designed) How the ceremony was designed _Looking at the unique DeFi users on mainnet, the numbers are still in the low 4 digits (below 10K per protocol, at best). We don’t expect Gearbox Protocol to be an exception to this just yet, because the protocol is not even live yet! But we also want to make sure the protocol has enough accounts for the first few months. After all, some accounts don’t get closed, some people might open a few at a time, and so on. Therefore, a number of 5,000 accounts to start with - seemed logical. If more are to be needed later on, another ceremony in an auction model could be held, for example, or just deploying from DAO Treasury funds._ ### [](#some-facts-about-the-credit-account-mining-ceremony) Some facts about the Credit Account Mining ceremony With 5,000 max Credit Accounts possible at this stage, not everyone will be able to participate in this exact distribution ceremony - which is okay, there will be other opportunities. However, the list needs to stay large enough to account for the fact that many of said wallets will either be inactive, or they won’t know of this ceremony, and so on. The gap could be like 5x of the total amount possible, to make sure that if there is demand - it should be met with the said wallets. * There is an approximately 48 hour window for this ceremony, after which the DAO votes shall begin. However, if not all 5,000 Credit Accounts are mined within the 48 hour period - they will remain there to be mined by the same wallet list (nothing will change with regard to that). So the window is not anyhow enforced, it's simply there to start DAO votes asap. If there is not enough for such a ceremony at the start, eligible wallets can decide to mine remaining later. * Because of pre-baked extra token approvals in the Credit Account Smart Contracts that will make the lives of protocol users easier later on, it costs approximately 2.5M gas to deploy one such SC. That is approximately 0.25ETH in deployment costs at current gas prices of 100. This of course can vary depending on network congestion. The mining is based on FCFS. With the current Ethereum block limit of 30M gas, there can be at maximum 12 Credit Accounts in a block. However, as every block has other important launches, liquidations, etc. - it's likely the number will be lower. This could potentially clog Ethereum for a few hours and make gas costs go up. Let's say 7 accounts per block \* 15 second block = 35 accounts per minute => 2,100 accounts per hour. Technically, can be done in 3 hours. We apologize for such a design of the ceremony, but it was actually a calculated risk: if done differently, users would have to deploy and then throw away their Credit Accounts every single time, causing much more wasteful gas usage. With the model in place though, there is this one-time event which clogs the network, but at least after that users would be able to just rent Credit Accounts and thus make the network a bit less clogged. ### [](#who-is-on-the-list) Who is on the list? 1. Lobsterdao NFT holders as an appreciation to the early community who have helped with ideas and support. We did not see people transferring NFTs to multiple wallets (in order to sybil) so there was no extra action taken yet to sort this out. Please cross-check. _No 10+txs requirement._ 2. Snapshot governance of protocols were taken with 10+ transactions per wallet. We thought this would be a good way to filter out _possible_ bot accounts, but this might be a wrong approach. Another way to go about it would be doing minimum balances. Or doing some wallet cross-checks… Please suggest, run tests, and comment. * 1inch.eth * Alchemixstakers.eth * Bancornetwork.eth * Convex * Cream-finance.eth * Dydxgov.eth * Fei.eth * Gitcoindao.eth * Index-coop.eth * Lido-snapshot.eth * MIM * Olympusdao.eth * Powerpool * Rari Capital * Ribbon.eth * Snxambassador.eth * Snxgov.eth * Spartancouncil.eth * Sushigov.eth * Tokemak * Yearn.eth * Ybaby.eth On-chain governance of: * ENS delegates * COMP delegates * UNI delegates * veCRV holders * MakerDAO voters * Aave voters * Nexus Mutual voters And also: * Element Finance LPs with 10+ transactions per wallet * GTC claimants with 10+ transactions per wallet You can also find more information here with snapshots and dune queries: Each one of the eligible addresses can deploy 1 Credit Account only, for fixed 100,000 GEAR in return. 5% for 5,000 accounts. Learn more below and in . The goal of Credit Account Mining ceremony is to restock the factory of that leverage users can “rent” from Gearbox Protocol later on. This way, leverage users won’t need to deploy expensive smart contracts every time, but instead just rent and give it back to the protocol after closing or being liquidated - this makes the protocol gas efficient! See more in the . Then, how does one choose who is eligible for it? And now we are getting back to the objective of the CA Mining ceremony: we already have the , we have some , and some early contributors… So for this ceremony, we decided to include governance participants of other protocols. This achieves the following: (i) choosing users who are familiar with governance and have voted before, so they potentially could be good for Gearbox DAO; (ii) visibility from other community because they are being given a cool chance to take part in the very first days of another DeFi protocol for potential integrations later on ; (iii) slightly works as an anti-sybil mechanism to make sure 1 group doesn’t take the entire supply into their hands. [GEAR token page](/gear-token/supply-information) [Credit Accounts](/overview/credit-account) [tech paper](/overview/whitepaper) [early testers and early community list](/overview/launch-phases/early-drop) [early developers](/gear-token/supply-information) [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)Credit Account Mining — GUIDE. Fueling up for the launch!Medium](https://medium.com/gearbox-protocol/credit-account-mining-guide-fueling-up-for-the-launch-abc17fbddbad) ALL YOU NEED TO KNOW [https://etherscan.io/address/0x7B1AAF21AC0D420666B5966338FF9aEe763C29DF#codeetherscan.io](https://etherscan.io/address/0x7B1AAF21AC0D420666B5966338FF9aEe763C29DF#code) \- AccountMining [https://etherscan.io/address/0x7B1AAF21AC0D420666B5966338FF9aEe763C29DF#code](https://etherscan.io/address/0x7B1AAF21AC0D420666B5966338FF9aEe763C29DF#code) [![Logo](https://github.com/fluidicon.png)GitHub - Gearbox-protocol/launch-snapshotGitHub](https://github.com/Gearbox-protocol/launch-snapshot) --- # Early Testers and Discord | Gearbox Protocol [PreviousCredit Account Mining](/overview/launch-phases/credit-account-mining) [NextOpening a Credit Account](/traders-and-farmers/how-to-open-account) Last updated 1 year ago Was this helpful? **Claim is / was live here:** * Testers: snapshot was taken at , end of the day of December 7. * Discord: snapshot of users and messages was taken around evening time of December 6. If you want to check the logic for how the snapshot was made, see the forum: [Kovan block 28668076](https://kovan.etherscan.io/block/28668076) [![Logo](https://aws1.discourse-cdn.com/standard20/uploads/gearbox2/optimized/1X/40221ec1798bb3decc5abdec38aa4f4038c46df2_2_32x32.png)GEAR Token - Testers & DiscordGearbox Governance](https://gov.gearbox.fi/t/gear-token-testers-discord/73/2) [![Logo](https://miro.medium.com/fit/c/152/152/1*sHhtYhaCe2Uc3IU0IgKwIQ.png)Gearbox DAO: Retroactive Public Contributions Funding & Jan RecapMedium](https://medium.com/gearbox-protocol/gearbox-dao-retroactive-public-contributions-funding-jan-recap-5c318ef89d75) LFG together, building composable generalized leverage <3 ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252F4qtRpXBl0Cw7gyAIur9B%252FIMG_7648.PNG%3Falt%3Dmedia%26token%3D79d9314a-7cf3-4a25-ac2f-ba4dc01f5018&width=768&dpr=4&quality=100&sign=f70fe903&sv=2) [![Logo](https://claim.gearbox.fi/images/favicon.ico?v=2)Gearbox Early Drop](https://claim.gearbox.fi) --- # Margin Trading: PURE | Gearbox Protocol [PreviousOpening a Credit Account](/traders-and-farmers/how-to-open-account) [NextBoosted Long/Short or "Free Leverage"](/traders-and-farmers/margin-trading-pure/long) Last updated 1 year ago Was this helpful? Underneath, the protocol logic and contracts are the same! Different dApps simply help different user bases get to their desired positions quicker. The PURE margin trading interface helps you enter leverage positions quickly, without having to go through a complex Credit Account opening process. Here you can find: 1. **Flexible Leverage:** You can either select how much of an asset you want to long - and then change your initial capital amount OR leverage factor. Or choose how much initial capital you want to go into a position with - and then chance your leverage factor. 2. **Position Management:** Check your liquidation price, leverage factor, borrow rate, slippage, and so on. You can also change these parameters later, after a position is open. The only thing that is staying in tact is your debt asset. That stays the same until you close that Credit Account. 3. **Visualized Charts:** The chart will draw a line for you to show you the liquidation price. Once you adjust your collateral (add more or increase your debt instead), the line will move accordingly. [](#why-is-it-pure-whats-cool-here) Why is it PURE? What's cool here? -------------------------------------------------------------------------- The name PURE is not an abbreviation. It literally means _pure_ leverage. The reason why it's pure is because Gearbox leverage isn't about perpetuals or isolated liquidity. With Gearbox: * **Real assets:** you trade with real spot assets, no perps or synthetics. * **Deep liquidity:** you trade with global DEX liquidity of Uniswap, Curve, Balancer, and other DEXes. Your trades literally happen on those DEXes, not inside Gearbox pools. * **No funding rates:** you have no funding rates, only borrow rates which are often cheaper. * **No price wicks:** you have no price wicks like on BitMex, because oracles are not inwards-looking. In case the third-party oracles (ChainLink, Redstone) malfunction though, that is still a possibility. * **Gearbots UX:** you can create any kind of limit orders and stop losses yourself, managing your trades fully onchain. You can do so without trusting any server, because those are fully onchain. [](#trading-strategies-ideas) Trading Strategies Ideas ----------------------------------------------------------- In terms of what you can do with margin trading, the following strategies are possible: * **Long margin trading: t**raders borrow funds to buy an asset with the expectation that its price will rise. The aim is to sell the asset at a higher price to repay the borrowed funds and keep the profit. * **Short margin trading:** borrowing an asset to sell it with the expectation that its price will fall. Traders aim to buy back the asset at a lower price, repay the borrowed funds, and keep the profit. Since shorting depends on the assets you borrow, you can only short BTC, ETH and stables currently. Ability to short more assets will increase as their lending pools are created. * **Basis trading:** profiting from borrow rate differences of the same asset on different markets or exchanges while remaining delta neutral is a common strategy. You can long an asset on Gearbox for a borrow fee that’s lower than most funding fee and short the same asset elsewhere to earn funding fee. This enables you to stay delta neutral and still earn through the rate arbitrage **Farm with your leveraged position:** you can utilise your leverage positions in farming and constructing interesting strategies if you want to do so, for example, you can read more about that on the . We call them boosted long/shorts. **Boosted Longs/Shorts:** Gearbox is composable, you can go ahead and deploy your leveraged position on other protocols. This enables users to earn APYs on their leveraged positions by directly leverage trading assets like sDAI, yWETH, yDAI and yUSDC. . **Pairs trading:** simultaneously entering both long and short positions in two correlated assets. Traders aim to profit from the relative performance of the two assets. An example of this would be instantaneous leverage on the BTC/ETH pair, just borrow ETH on leverage and swap it to BTC. Same can be done to create other BTC and ETH relative pairs. More . If you would want to get more out of margin trading, you can later click on "Extended dApp" in the interface and configure your position further. For example, make your short or long - farm at the same time. Many of these are possible, just dive in! [Leverage 2.0 page](/what-can-you-do-with-leverage-2.0) [Read about Boosted Trades](/traders-and-farmers/margin-trading-pure/long) [here](https://www.investopedia.com/terms/p/pairstrade.asp) [leverage 2.0 actions](/what-can-you-do-with-leverage-2.0) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252F1vVmUtZXRKnAkjqb7C7h%252Fgearbox%2520pure%2520margin%2520trading.png%3Falt%3Dmedia%26token%3Df843a920-aa65-4716-b394-05319345a427&width=768&dpr=4&quality=100&sign=a854c6b8&sv=2) ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252Fg0sInNpf6Gqa1SdNpph2%252Fgearbox%2520pure%2520margin%2520trading.png%3Falt%3Dmedia%26token%3D43d9af98-2554-4e08-8f73-770ee3c55c36&width=768&dpr=4&quality=100&sign=ae8ccd1b&sv=2) Click the green button at the top right corner: ![](https://docs.gearbox.finance/~gitbook/image?url=https%3A%2F%2F2814718898-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F-MV2P3lqKrTIf58BQE1v%252Fuploads%252FicHh4trrkwrfC4rBuuGf%252Fgearbox%2520infinite%2520dex%2520liquidity.png%3Falt%3Dmedia%26token%3D0bef376a-42ed-46d2-9b8b-2459692e35e7&width=768&dpr=4&quality=100&sign=3c0a0338&sv=2) [https://pure.gearbox.fi/](https://pure.gearbox.fi/) [https://pure.gearbox.fi/](https://pure.gearbox.fi/) [pure.gearbox.fi](https://pure.gearbox.fi/trade) ---