Gearbox Protocol

There's no looping on Gearbox anymore. Why? Because there never was. Looping is fundamentally inefficient. You borrow against your deposit, buy more of the same asset, and redeposit it repeatedly to create leverage. Every step bleeds efficiency. ◾️ Looping manually? Repeatedly buy on DEXes and pay slippage. ◾️ Want to automate? Incur cost for a tool. ◾️ Don't want to incur slippage? Manually mint the asset at every loop. ◾️ Want to close a loop by unstaking assets to avoid slippage? Months lost to unstaking every loop. ◾️ Want to change the asset you loop? Wind down your current loop and create another. ◾️ Want to loop a non-tokenised or non-DEX asset like Convex staked positions? You can't. Looping isn't just yield-inefficient, it also limits protocols to lending only against tokens and never against contracts, stifling the innovation composability makes possible. And that's why Gearbox has never had looping. Leverage on Gearbox has never been built on loops, but on credit. Borrowers don’t receive a one-block flashloan; they receive real credit for the full duration of their position by opening Credit Accounts. ✅ Leveraging manually? No need, Gearbox can batch all of your actions from borrowing to the final swap in a single transaction at no additional cost. ✅ Don’t want to incur slippage? Use your credit to mint from the contract instead of swapping at a DEX and save months of yield. ✅ Unstaking a leveraged position? You can unstake your entire position in one go, with zero slippage and in a fraction of the time. ✅ Want to switch the asset you leverage? No need to pay back the credit, simply swap it to another asset. ✅ Want exposure to a non-tokenised position or an asset with zero DEX liquidity? Your credit flows through DeFi, unlike your loops. Composability isn’t about putting tokens in a lending pool, it's about protocols building on each other to create new, innovative financial primitives. The future of credit isn't stuck in a pool. The future of credit isn't limited to DEXes and tokens. The future of credit powers everything in DeFi. The future of credit is Gearbox Permissionless, DeFi's permissionless leverage layer. ⚙️🧰

To address the latest liquidity crunch in our @GearboxProtocol USDC Vault on Monad we've adjusted the Interest Rate Model, currently borrow rate at 100% utilization moved from 20% to 10%. This strikes a balance between looping strategy losses and attractiveness of the lending side. None of the accepted collaterals have any exposure to rsETH. We continue to monitor the markets and will adjust accordingly to find the balance, also working on other solutions to ensure the rates are cooled down, including work with LPs and external parties to help incentivize the lending side.

Update on KPK's Gearbox markets following the rsETH incident. KPK's Gearbox markets continue to operate safely. There is no direct rsETH exposure. LTVs on collateral with indirect Aave exposure has been adjusted conservatively, so lenders stay protected even in a contagion scenario. On Saturday, KPK took the following precautionary steps: • rsETH quotas set to zero, blocking any new exposure • Borrowing paused on tETH, PT-DETH, DETH and the Beefy-wrapped Balancer v3 pools that rely on Aave for liquidity (osETH/WETH, rETH/WETH, tETH/wstETH) Over the weekend, a large withdrawal from the Gearbox WETH pool pushed utilisation to 100%, driving borrow rates sharply higher. Some Beefy-wrapped borrowers are temporarily unable to close their positions, as closing requires unwrapping aEthWETH to plain WETH, which Aave is not currently servicing. This has kept rates elevated. In response, KPK has queued a change in the timelock that flattens the WETH pool's interest rate model. Once live (~14:00 UTC, 21 April), the maximum borrow rate drops to approximately 5% APY, bringing all affected strategies back to positive carry. All collateral without Aave exposure can still be unwound normally. The wstETH pool is unaffected, with utilisation there still normal. We are monitoring closely and will post further updates. If you have questions about your position, reach out directly.

Gearbox curators have no direct exposure to rsETH and the protocol continues to operate safely. In response to recent developments, @kpk_io has proactively restricted the creation of any new exposure to rsETH. Out of caution, borrowing against tETH and DETH has been paused as well. Any indirect exposure to kpk markets poses no risks to lenders and is limited to active loans backed by Balancer v3 LP tokens, which partly see underlying TVL deposited into Aave. The LTV on these positions ensure solvency even under highly adverse scenarios affecting the underlying Aave pools. kpk is actively monitoring the developments closely and users can reach out to them in case of any specific questions. Gearbox protocol continues to operate as expected.

DeFi has always been “figure it out yourself” finance. Finding yield is easy, but everything that comes after is not. Too many steps, too many apps, too much friction. So how the hell do we fix that? We sat down in Cannes for an ecosystem roundtable with @lifiprotocol, @LidoFinance, @GearboxProtocol, and @jumperapp to chat about why the system still feels broken and what might fix it.

9️⃣ Leveraged LP Strategies on Gearbox tETH–wstETH Balancer LP positions can now be deployed on @GearboxProtocol to unlock additional leveraged yield exposure. app.gearbox.finance/strategies/ope…

Scaling DeFi Cannes starts soon 🇫🇷 Doors open at 4PM and merch won't last long. Don't say we didn't warn you 👀
 See you there with @eulerfinance, @GearboxProtocol, @Anchorage and @redstone_defi.

There are currently 3 pools for lending stablecoins on @GearboxProtocol at high rates (7.6-10.8%). USDC on Ethereum Mainnet = 7.66% AUSD on Monad = 9.59% USDC on Monad = 10.87% The reason I like to lend on Gearbox is because after $12.8B in transaction volume, the protocol still holds a very impressive bad-debt-free track record since launching in 2021. This is one major reason why users keep lending and farming on Gearbox. But where does organic demand to leverage farm come from? Because Gearbox Credit Accounts are superior to all forms of looping elsewhere. Gearbox leverage farming is NOT looping. + Borrowers receive real credit for the full duration of their position by opening Credit Accounts. + Borrowers don’t receive a one-block flashloan because they don't need it to automate manual loops. + Looping is inefficient, where you repeatedly lend, borrow, and swap as you pay slippage to wind up or do the reverse when you unwind. + Gearbox instead batches all of your actions from borrowing to the final swap in a single txn at no added cost. If you were to compare actual looping automation elsewhere using flashloans, you'd see significantly higher transaction fees for all that's required vs the simpler, more gas-efficient way Gearbox Credit Accounts handles creating a leveraged position. Many of us often misuse the term "looping" when describing leverage farming strategies on Gearbox but it's due to the fact that looping is an easy point of reference. So if you understand the benefits of leverage farming (excluding the downsides of creating/unwinding a looping position), that's why borrowing rates stay relatively higher on Gearbox with $71M TVL today. And that's why I monitor lending opportunities on Gearbox, because they're consistently higher and you're protected against bad debt. See for yourself: app.gearbox.finance/pools

@RobAnon Soon 🔜

Tulipa Capital is actively monitoring the ongoing Resolv/USR exploit. Our vault positions do not hold exposure to the affected assets or markets. To our Gearbox users: we have disallowed position increases on the relevant assets and will take further protective action if the situation warrants it. Tulipa Capital is committed to ensuring lenders are fully protected. We will continue to monitor as Resolv works toward a recovery plan. @GearboxProtocol

"You can do it in one hop: Mint RWAs with leverage directly on tokenization platforms." ☝️ 🆕 @GearboxProtocol DeFi Drop 🎙️ episode is LIVE 🔐 Credit accounts: DeFi's margin account 🏦 No-code markets for institutions 🔮 Prediction: DeFi TVL $200B by June 2026 Don't miss it ⚙️

Scaling DeFi returns during @EthCC. 🇫🇷 Thanks to our sponsors @eulerfinance, @GearboxProtocol, @Anchorage and @redstone_defi for making it possible. Featuring speakers from leading DeFi protocols and institutional teams. March 31 · Cannes

Introducing the Chapter Takeover curated by Tulipa Capital. For the next week the infiniFi points page transforms into a boosted Gearbox Chapter & so do the point multipliers. infiniFi Points Boost Multiplier: • 13.5x for siUSD • 9x for liUSD 1wk

🏦 EarnETH: DeFi rewards made simple The EarnETH vault allocates capital across established DeFi protocols including @aave, @Morpho, @pendle_fi, @GearboxProtocol, @maplefinance and more, dynamically shifting toward stronger opportunities as conditions change. Deposit to receive earnETH, designed for daily auto-compounded DeFi rewards.

@bonnazhu @sonyasunkim It’s close but on Gearbox, users won’t need external liquidity. They will be able to utilise the existing vault liquidity for Prime Brokerage and automated leverage itself. Lowers fee + borrow rate volitility that external lenders can induce

@sonyasunkim @sonyasunkim great write up, inspires me to write something on this topic as well. Also reminded me of @GearboxProtocol's Credit Account infrastructure, which essentially does the similar thing for on-chain looping, and lends up to a few x in a single atomic transaction.

1/ New collateral is live in kpk-curated markets on @GearboxProtocol: tETH / wstETH LP (from @TreehouseFi) via a Beefy-optimised Balancer v3 boosted pool. Usable as collateral in both WETH and wstETH markets, and loopable on Gearbox.

Update for borrowers of legacy V3 pools curated by Chaos Labs. As we transition to a lending stack purpose-built for tokenised assets and automated RWA leverage, the legacy V3 markets curated by Chaos Labs will be sunset. While this marks the next phase of Gearbox as infrastructure delivering real-world lending for real-world assets, borrowers on legacy V3 markets (Chaos Labs only) are required to take the necessary actions. • What users need to do: Migrate your position to the permissionless markets set up by other curators, or close your positions. • What happens if you don't: The markets will deprecate on 16 March, and as the LT reduces, users may face liquidations. To minimise the impact, the liquidation fee has been reduced to near-zero (0.01%). Users will be able to withdraw their collateral in case they face liquidations. • Why is this being done? As we move towards delivering automated leverage and lending rails for tokenised assets, managing our legacy stack without a dedicated risk manager is neither safe nor aligned with Gearbox's long-term ambitions. To minimise risks, these legacy markets need to be sunset. The sunsetting of V3 markets does not affect borrowers in any other curator markets apart from Chaos Labs, and no action is required from them. If you have any questions, please reach out to us via DMs, Discord, or TG.

Level up your digital wealth now. Autocompound on Beefy with your LP collateral on Gearbox to unlock borrowing power and yield.

On @GearboxProtocol, the RAAC Bots discovered a legendary fire… one that forges golden yield with pmUSD 🔥 - Farm 23% APR - Use leverage - Earn RAAC Points for supplying USDC In the crypto jungle, we don’t compete We compound PVE is the way ✊ Curated by @tulipacapital

$27M in pmUSD LPs on Curve, grateful for the momentum🙌 In less than 2 months, RAAC's first product has grown into a meaningful stablecoin yield opportunity in DeFi, currently still offering up to 27% APR on Curve Finance: pmusd.raac.io This growth has been supported by recent integrations across the ecosystem. LPs can now optimize yield through @ConvexFinance, @StakeDAOHQ, @yearnfi, and @beefyfinance. Yield farmers can explore leveraged strategies via @GearboxProtocol as well. Borrowing strategies with @roycoprotocol are also live, adding more flexibility around pmUSD liquidity. And of course, the team is working hard on more integrations. But we’re still early 👀 Ahead of our TGE in H1 2026, we’re building the next layers of the RAAC ecosystem, and new products will be launched in the next few weeks. RAACLend & iREET will mark RAAC’s first concrete step into tokenized real estate and unlock new RWA-backed yield strategies. Finally, remember that all pmUSD liquidity providers are automatically eligible for our ongoing Points Program leading up to the TGE.