Gearbox

**Gearbox is shutting down legacy V3 lending markets curated by Chaos Labs** as it pivots toward infrastructure for tokenized real-world assets (RWAs) and automated leverage. **Action Required by March 16:** - Borrowers in Chaos Labs-curated markets must migrate positions to permissionless markets or close them - Failure to act may result in liquidations as loan-to-value ratios decrease - Liquidation fees reduced to 0.01% to minimize impact - Users can withdraw collateral if liquidated **Why the Change:** Managing legacy markets without a dedicated risk manager poses safety risks and doesn't align with Gearbox's focus on automated RWA lending infrastructure. **Important:** This only affects Chaos Labs markets. Borrowers in other curator markets are unaffected and need take no action. Questions? Reach out via [Discord](https://discord.gg/gearbox), Telegram, or DMs.

Gearbox Protocol is rolling out a new infrastructure for leveraged real-world asset (RWA) trading that eliminates traditional DeFi friction points. **Key Features:** - One-click deployment for leverage positions - Zero slippage execution - No reliance on DEX liquidity pools - Instant position unwinding - Direct smart contract wrapping/unwrapping **What's Changing:** The protocol is developing credit lines specifically for major RWA issuers, creating what they describe as "the most capital-efficient leverage" for tokenized real-world assets. Unlike conventional DeFi leverage, the system bypasses decentralized exchanges entirely. The structure handles all asset conversions through smart contracts rather than trading through liquidity pools, removing slippage concerns that typically affect large positions. **Technical Approach:** Gearbox's model separates passive lenders (earning yield on single assets) from active borrowers who can leverage up to 10x for trading or farming strategies. The new RWA integration extends this framework to tokenized real-world assets. Credit lines are currently under development with unnamed large issuers, suggesting institutional-grade infrastructure is being built into the protocol. This represents a shift in how leverage interacts with tokenized traditional assets onchain, focusing on direct execution rather than market-making mechanisms.

Gearbox has integrated Balancer pools, enabling users to provide liquidity with up to 10x leverage on StakeWise and Rocket Pool positions. **Key Features:** - Leverage liquidity provision up to 10x on select liquid staking pools - Integration with StakeWise and Rocket Pool through Balancer - Built on Gearbox's Permissionless infrastructure - Curated by kpk for risk management **How It Works:** Users can now deposit collateral and borrow up to 10 times their position size to provide liquidity in Balancer pools containing liquid staking tokens. This allows for amplified exposure to LP rewards while maintaining the protocol's correlated debt model for reduced liquidation risk. The deployment follows Gearbox's recent expansion to Lisk L2, where the protocol offers similar leverage capabilities with institutional-grade security and no platform fees. Gearbox continues to expand its permissionless lending infrastructure across multiple chains and DeFi protocols.

Gearbox Protocol has launched Credit Accounts (CAs), smart wallets designed to bring traditional finance lending mechanics to DeFi and Real-World Assets (RWAs). **Key Features:** - Users access actual credit lines rather than token looping mechanisms - Borrowers can obtain up to 40% credit leverage - Credit Accounts enforce logic and constraints required for RWA lending - Capital can be deployed across permitted integrations while maintaining security **How It Works:** Unlike standard lending pools, Credit Accounts function as smart wallets that mirror real-world lending practices. This infrastructure enables borrowers to acquire assets with borrowed capital in a way that aligns with traditional finance credit lines. The system is specifically built to handle the unique requirements of Real-World Assets, which demand more sophisticated lending structures than typical DeFi token operations. Learn more about [Gearbox Protocol](https://gearbox.fi)

Gearbox Protocol has dramatically accelerated its market expansion in the final quarter of 2024. **Key Metrics:** - 50+ new markets listed in just 3 months - 4X faster speed to market compared to previous pace - Previously took all of 2024 to list 42 markets This rapid expansion is part of Gearbox's preparation for **Gearbox Permissionless** - positioning the protocol for what they call "DeFi's inflection point." The acceleration demonstrates the protocol's growing momentum as it builds toward a more permissionless future for leveraged DeFi trading.