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The platform works when users open a credit account, which is an isolated smart contract containing the user funds and the borrowed funds. Every operation goes through the account. Users then choose their collateral. The credit accounts are denominated in the collateral that the user opened it in, like BTC, ETH, DAI, etc. The positions within the account are then calculated in the asset identical to cross-margin. When a user funds their account, they get leverage. The leverage amount a user borrows comes with an interest rate they are required to pay. Users can manage credit accounts since they possess a liquidation threshold.

Gearbox's native token is $DIESEL, and it is the protocol’s LP token. Users can deposit liquidity in a given pool in order to receive $DIESEL. In return, the token holders start accumulating interest via the capital available in the liquidity pool, and it is utilized in powering credit accounts. In addition, token holders receive a part of protocol fees that are proportional to their own share of a given pool.

GEAR token is an ERC20 utility token, starting off as a governance token for the protocol - and then possibly taking any other new function the DAO could envision for it. The supply of GEAR is capped at 10,000,000,000 (10 billion) which can't be technically changed.

The core vision is to become a backend composable leverage protocol that all kinds of users can utilize but don’t even need to interact directly with a specific interface. 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. Or integrate Gearbox into a platform like Zerion or Zapper.

Gearbox is a generalized leverage protocol that lets users take leverage from one place, then utilize it in a composable manner across different DeFi protocols and platforms. Gearbox possesses two sides: 1) the passive liquidity providers earning more APY by providing liquidity, and 2) the active traders, farmers, and protocols able to borrow the assets in order to trade with leverage.

Gearbox is a generalized leverage protocol:

It allows anyone to take leverage in a DeFi-native way and then use it across various DeFi protocols in a composable way. You take leverage with Gearbox and then use it on other protocols you already love. For example, you can leverage trade on Uniswap, leverage farm on Yearn, make complex delta-neutral strategies, get Leverage-as-a-Service for your structured product, and more… Thanks to Credit Accounts primitive!

The protocol has two sides to it: passive liquidity providers who earn higher APY by providing liquidity; - and active traders, farmers, or even other protocols who can borrow those assets to trade or farm with x4+ leverage. See how it works on this page.

The core vision is to become a backend composable leverage protocol that all kinds of users can utilize but don’t even need to interact directly with a specific interface. 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. Or integrate Gearbox into a platform like Zerion or Zapper.