KoinlyticsGearbox is DeFi's leverage layer. Instead of borrowing to buy an asset, you open a leveraged credit account that can interact with any whitelisted DeFi protocol. Your 10x-leveraged position can LP on Curve, stake on Convex, or trade on Uniswap.
Credit accounts
A smart contract vault that holds your collateral + borrowed funds. Adapters route calls from the account into external protocols. Gearbox monitors health; if leveraged position drops below threshold, liquidator closes the whole account.
What this enables
- Leveraged LP. Put 10x leveraged stETH/ETH into a Curve pool. If pool APR is 4%, your effective APR is closer to 40%. IL is amplified too.
- Leveraged staking. 10x leveraged stETH earns 10x staking yield minus borrow cost.
- Leveraged strategies. Loop into Yearn, Convex, Pendle without unwinding leverage.
Passive side: LP
Passive liquidity providers deposit stables into Gearbox pools. Traders (credit account holders) borrow from these pools. LPs earn borrow interest. Utilization stays high because leverage is always in demand.
Risk model
Every whitelisted protocol is a potential attack surface. Gearbox's governance is careful about which protocols and assets get whitelisted. Historical incidents have been rare and contained.
When to use
- Yield strategies where 5-10x leverage on a stable-ish pair meaningfully increases returns.
- Sophisticated portfolios that would otherwise loop manually.
When not
- Retail users unfamiliar with liquidation mechanics.
- Volatile pairs where leverage amplifies IL uncontrollably.