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.
GEAR price
$0.0003
-1.6% 24h
Latest data · 15 min delay
Typed risks scored by severity, likelihood and impact, with the incident record behind them.
41
severity-weighted points across 15 typed risks · 1 critical
assessed Jul 2026Market
14· 5 risks
Technological
13· 5 risks
Counterparty
7· 2 risks · 1 critical
Governance
5· 2 risks
Regulatory
2· 1 risk
Every score is recomputed at render time from the typed risks below; nothing is hand-assigned. Each risk contributes its severity weight (critical 4 · high 3 · medium 2 · low 1) to its category; the headline number is the sum across all categories. Bars scale to this entity's highest category score. Scores are not comparable across tags because a permissionless-market protocol concentrates technological risk while an institutional-credit protocol concentrates counterparty and regulatory risk, and a single league table would misrepresent both.
Market 5 × → 14
Technological 5 × → 13
Counterparty 2 × → 7
Governance 2 × → 5
Regulatory 1 × → 2
Gearbox has the strongest loss record of the four, with no bad debt since 2021 including through the April 2024 ezETH cascade where it was the single most affected venue with $33m liquidated and still turned a profit. Its protections are unusually concrete: a dual-oracle Main and Reserve feed, a Loss Policy that halts liquidation when a position is only underwater at a dislocated market price, partial liquidation via a Deleverage Bot at a reduced premium, per-asset quotas that cap how much debt any collateral can secure, formal verification of the math libraries and a $1,000,000 Immunefi bounty. The risk has instead moved to the counterparty layer. Since GIP-264, risk parameters are set by commercial curators such as K3 Capital, Re7 Labs, kpk and Chaos Labs, and Gearbox's own auditor notes the Configurator role is fully trusted; a 24-hour timelock is the only structural brake, and an Emergency Admin can bypass even that. Combine that with credit accounts reaching up to 40x across adapters into Mellow, Pendle, Ethena and Sky, and 27 chains to police, and the plausible failure mode is not a contract bug but one curator parameterising one exotic collateral badly.
Market5
Technological5
Counterparty2
Governance2
Regulatory1
4 documented incidents · Mar 2023 to 2024 · how the protocol behaved under stress, with sources.
Mar 2023
A single Credit Account was liquidated on 9 March 2023 during the USDC depeg and related market chaos, losing more than half of the collateral the user posted.
DetailsA single Credit Account was liquidated on 9 March 2023 during the USDC depeg and related market chaos, losing more than half of the collateral the user posted.
Outcome: No bad debt resulted; Gearbox reported the protocol remained overcollateralized throughout.
SourceApr 2024
Renzo's ezETH lost its peg to ETH amid airdrop confusion; users could not redeem, exchange selling followed, and restaking airdrop farmers holding leveraged ezETH on Gearbox were liquidated.
DetailsRenzo's ezETH lost its peg to ETH amid airdrop confusion; users could not redeem, exchange selling followed, and restaking airdrop farmers holding leveraged ezETH on Gearbox were liquidated.
Outcome: No bad debt at Gearbox; the protocol earned a profit from the liquidations, while Morpho, the second most affected venue, took about $34,000 of bad debt. The event motivated the Loss Policy aliased pricing mechanism.
SourceAug 2025
GIP-264 wound down the DAO-governed pool model entirely, migrating curation to kpk, Maven11 and other permissionless curators.
DetailsGIP-264 wound down the DAO-governed pool model entirely, migrating curation to kpk, Maven11 and other permissionless curators.
Outcome: Planned migration rather than a loss event. TVL grew from $105m to $329m between March and August 2025, a 213% increase.
Source2024
Restaking airdrop farming opportunities shrank and leveraged farmers exited Gearbox en masse.
DetailsRestaking airdrop farming opportunities shrank and leveraged farmers exited Gearbox en masse.
Outcome: TVL recovered to $340m by September 2025, with $250m of that on the Permissionless market.
SourceEvent-type chips are categorised by event type against the risk taxonomy (a documented presentation mapping, not a dataset assessment). Amounts are the dataset's published figures; missing values were never published.
