Gearbox
Credit · Leveraged Yield · GEAR
Gearbox is a generalized leverage protocol: users open Credit Accounts to borrow against collateral and deploy leveraged positions into integrated DeFi strategies (Curve, Convex, Lido, Yearn).
Composable leverage via Credit Accounts.
Protocol TVL
—
Latest data · 15 min delay
Risks identified
- Collateral
Borrowers run leveraged positions (up to ~10x) inside Credit Accounts. A sharp adverse move in collateral value can push a Credit Account below its liquidation threshold; if liquidations lag or fail in volatile/illiquid conditions, the lending pool can accrue bad debt that impairs passive lenders.
- Systemic
Composability risk: Credit Accounts deploy borrowed liquidity into external protocols (Curve, Convex, Pendle, Lido, etc.) via adapters. A failure, exploit or depeg in any integrated protocol propagates into Gearbox positions and can cascade into the shared lending pools.
- Oracle
Credit Account health factors and liquidations depend on price oracles for collateral and integrated assets. Oracle latency, manipulation or misconfiguration on medium/long-tail or L2 assets (which V3 explicitly supports) could allow undercollateralized borrowing or unfair liquidations.
- Smart Contract
The protocol relies on complex Credit Manager, pool and adapter contracts across V1/V2/V3 and multiple chains. Despite extensive audits, undiscovered bugs in adapters or the account-abstraction layer could lead to loss of pool or user funds.
- Governance
Which assets, protocols and risk parameters (collateral limits, quotas, borrow fees) are allowed is set by GEAR-based DAO governance and executed via a treasury multisig that originally held ~51% of supply. Concentrated voting power or a malicious/erroneous parameter change could raise systemic risk for lenders.