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A protocol so promising, Lido just got its own dedicated instance of it.
That’s Gearbox Protocol I’m talking about. But what is Gearbox, actually?
It’s a protocol with the vision of becoming a leverage and credit layer, where you can lend assets and let people use them for leverage anywhere.
Read more to find out how it works:
Since Gearbox is a leverage/credit layer, it works as the middleman between your wallet and other protocols.
That middleman is referred to as a Credit Account (CA). This is where users’ deposited and borrowed assets reside. It’s a sort of wallet you can send directives to in order to do leverage operations on many protocols, whether it’s margin trading, leverage farming, or more…
In order to keep the platform secure, there’s a whitelist of tokens and protocols that can be interacted with, and this list is voted by DAO members. Though it cuts down on leverage opportunities, it’s essential so users can make sure they’re interacting with trustworthy contracts.
Gearbox is powered by the GEAR token, a token which has multiple use cases across the protocol’s ecosystem:
Ultimately, it’s up to you to decide what you’d like to do with GEAR, but using it to participate in voting initiatives in the Gearbox DAO is a great first step.
On Gearbox, you get to earn in multiple ways. The simplest way is by supplying liquidity!
As you lend assets to a pool, the protocol will give you Diesel Tokens in return, aka dTokens. These dTokens earn interest & fees based on just how much you supplied to the pool. This process is automatic: there’s no claiming to be done, the tokens grow in value over time by themselves.
Another way is by margin trading using Gearbox’s PURE. It’s called pure because you don’t trade with perps or synthetics, but with the real assets in DEXes’ deep liquidity pools! Fees are also lower, because PURE uses borrowing rates instead of the more expensive funding rates. You can even boost your short or long, and farm those positions to make your borrow rate cheaper over time.
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Gearbox features many money-making opportunities, no matter the type of trader you are.
The Lido instance of Gearbox has just hit $25M in TVL, recently after its launch!
But what does this instance entail?
Incentivized by P2P.org and powered by Mellow Protocol vaults, this creates a whole new wstETH credit market: on this instance, you can borrow up to 20x credit to use in Mellow markets. Meanwhile, lenders can get rewards by providing wstETH without being hit by any impermanent loss, fees or lockups!
On top of this, lenders get access to annual rewards on Mellow, where they can be leveraged with 14x-20x credit on DVstETH and rstETH.
Not only the Lido instance offers great opportunities for users, but it highlights Gearbox’s relevance to institutions and protocols: with deep liquidity, customizable rates and a security-tested technology, Gearbox offers a product fit for all needs that can be modified to fit into any protocol or institution’s success plan.
We support Gearbox in their quest to make leverage accessible and modular for all, by supplying them the essential treasury data to be transparent, reinforcing the trust between the team and the DAO members, therefore encouraging them to grow.
With accurate labeling and analysis of your DeFi portfolio, Octav is a helpful tool for CFOs, asset managers, and accountants working in various organizations such as hedge funds, family offices or financial institutions. Thanks to our thorough and accurate database, Octav makes DeFi more accessible, serving as an essential guide for understanding cost basis, profits, losses, and more.
Sign up for Octav Pro today and gain significant advantages for the day-to-day management of your crypto activities: unify all wallets you work with under one bundle to save time and let automated reports send you updates on your organization’s finances without having to analyze it yourself. Monitor your holdings on our Treasury page, and be transparent by sharing it publicly with your DAO members or the rest of your team. Whether you’re the CFO of a business, an accounting professional or a DAO treasury leader, use Octav to make DeFi management a breeze!
Are you a DAO in need of advanced treasury analytics? Octav offers demos upon request.
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