GEAR

Data Delay

Price data is delayed

Gearbox

Use Cases of Gearbox

• Leverage Lending: Gearbox is a leverage lending protocol that connects depositors and borrowers through credit accounts. It allows users to borrow assets against their collateral to obtain leverage, which can be used for trading or mining in other DeFi protocols such as Uniswap, Curve, Sushiswap, Lido, Convex, and Yearn.

• Composability: The protocol is designed to be composable, meaning it can integrate with various DeFi protocols, enabling users to access leverage and interact with external DeFi protocols seamlessly. This is achieved through the use of credit accounts, which are isolated smart contracts that contain both user funds and borrowed margin funds.

• Leveraged Farming: Gearbox provides a "one-click strategy" for leveraged farming. Users can open a credit account, deposit collateral, and borrow assets to engage in mining on protocols like Lido and Curve, thereby increasing returns. This process is streamlined, requiring users only to input the quantity of collateral they want to deposit.

• Passive Yield: For passive liquidity providers, Gearbox offers the opportunity to earn passive APY without impermanent loss. Lenders can deposit assets to earn yield, while leverage users can borrow these assets to create spot leverage positions across DeFi.

• Integration and Customization: The protocol is designed to be modular and adaptable, allowing users and other protocols to build integrations and adapters for their favorite protocols. This flexibility enables a wide range of use cases, including delta-neutral and cross-collateral strategies.

Pros of Gearbox

• Leverage Lending: Gearbox offers high-leverage lending through credit accounts, allowing users to borrow assets at ratios of up to 10x their collateral. This feature is particularly beneficial for traders looking to maximize their potential gains.
• Composability: The protocol integrates with multiple DeFi platforms such as Uniswap, Curve, Sushiswap, Lido, Convex, and Yearn, enabling users to use borrowed funds across various protocols seamlessly.
• Flexibility: Gearbox provides a versatile lending platform with flexible interest rates, enhancing yield farming capabilities and ensuring stable loan repayments in both favorable and unfavorable market conditions.
• Interoperability: The protocol is designed to work with multiple blockchain networks, offering broader access and freedom to users.
• Governance: GEAR token holders have a say in the platform's governance, allowing them to propose modifications or veto proposals, which fosters a democratic and community-driven development process.
• Risk Management: Gearbox implements an efficient risk management mechanism that adjusts parameters in real-time based on market conditions, ensuring user assets are continually secured and the overall system's stability is maintained.
• Innovative Features: The protocol includes features like "risk pools" and "Gearbots," which enable users to tailor their investment strategies according to their risk appetite and automate trading strategies based on specific rules and prices.

Cons of Gearbox

• Limited Asset Support: The types of assets currently supported by Gearbox are relatively limited, which may restrict the platform's appeal to a broader user base.
• Market Dependence: The success of Gearbox is heavily dependent on the overall performance of the DeFi market and the adoption of its features by users.
• Complexity: The use of credit accounts and leverage lending may be complex for new users to understand and navigate.
• Regulatory Uncertainty: As with many DeFi projects, there is regulatory uncertainty surrounding Gearbox, which could impact its future development and adoption.
• Dependence on Third-Party Protocols: Gearbox's functionality relies on integration with third-party DeFi protocols, which could pose risks if these protocols experience issues or vulnerabilities.

Founders of Gearbox

The term "Gearbox" in the context of cryptocurrency refers to Gearbox Protocol, which is different from Gearbox Software, a video game development company. The founder of Gearbox Protocol is Mikhail Lazarev, who serves as the Chief Technology Officer (CTO). Gearbox Protocol is not associated with Gearbox Software or its founders, which include Randy Pitchford, Brian Martel, Stephen Bahl, Landon Montgomery, and Rob Heironimus.

Key Points:

• Gearbox Protocol: Founded by Mikhail Lazarev.
• Gearbox Software: Founded by Randy Pitchford, Brian Martel, Stephen Bahl, Landon Montgomery, and Rob Heironimus, unrelated to Gearbox Protocol.

Investors in Gearbox

Gearbox has received funding from various investors across different rounds. Here are some of the key investors:

• Placeholder Ventures: Participated in strategic and DAO rounds.
• A_capital: Involved in strategic financing rounds.
• Galaxy Digital: Backed strategic financing rounds.
• Zee Prime Capital: Participated in strategic and DAO rounds.
• Ledger Prime: Involved in strategic and DAO rounds.
• Polymorphic Capital: Participated in strategic and DAO rounds.
• Global Coin Research (GCR): Participated in DAO rounds.
• eGirl Capital: Involved in earlier funding rounds.
• Stani Kulechov: Participated as an angel investor.
• Focus Labs: Involved in earlier funding rounds.

These investors have contributed to Gearbox's total raised funds of over $13.69 million, with significant contributions in strategic and DAO rounds.

Halal Status of Cryptocurrencies

• Gearbox: No specific information is available in the provided sources to confirm whether Gearbox is halal or not. However, for a cryptocurrency to be considered halal, it must comply with Shariah guidelines, which typically involve ensuring that the project does not engage in activities prohibited by Islamic law, such as gambling or usury.

General Criteria for Halal Cryptocurrencies

• Compliance with Shariah: Cryptocurrencies must adhere to Islamic principles, avoiding any involvement in haram activities.
• Screening Process: Each cryptocurrency is screened against robust Shariah guidelines to determine its halal status.
• Examples of Halal Cryptocurrencies: Various cryptocurrencies like Cardano (ADA), Chainlink (LINK), and Tezos (XTZ) have been identified as halal by certain sources.

Note

For a definitive answer on Gearbox, it is recommended to consult a reliable Islamic finance authority or a halal cryptocurrency list that includes Gearbox in its assessment.