Table of contents:1. What is Gearbox?2. Gearbox Protocol Features3. Wallets for Gearbox4. Yield Farming on Gearbox5. How to Automatize your Yield Farming on Gearbox with De.Fi?6. Introduction to the Credit Accounts on Gearbox7. How to choose the strategy for Credit Account Staking on Gearbox?8. Using Leverage on Gearbox9. Should you use Gearbox?10. Free Crypto Security Bible Giveaway (HOT!)Gearbox Protocol is a lending marketplace on Ethereum that provides a platform for two distinct types of users: passive liquidity providers and active leverage users. For those who prefer a more passive approach, the protocol allows them to earn APY rewards in the same asset without actively managing their positions. On the other hand, active users who are knowledgeable in DeFi can leverage their expertise and alpha to earn even more by using up to ×10 leverage on top farms such as Uniswap, Sushiswap, Curve, Lido, Convex, Yearn, and more. With Gearbox Protocol, users can open a Credit Account that functions like a smart contract leveraged wallet to enhance their investments.Gearbox Protocol is a community-driven, composable DeFi platform that allows users to lend and borrow funds with leverage. It doesn’t have its own order book or trading environment, but instead, it allows users to utilize leverage across multiple DeFi protocols and assets, making it fully composable. The protocol limits users within the boundaries of security according to the AllowedList policy to ensure that funds are not stolen by known attacks, but apart from that, users can decide what complex strategies and trades they want to execute with Gearbox leverage.Gearbox’s functionality is underpinned by the Credit Account. A Credit Account is an essential feature of the Gearbox Protocol that serves as an isolated smart contract where both user funds and borrowed funds are stored. Funds on Credit Accounts serve as collateral for debt, enabling users to execute complex strategies and trades with ease.Positions and trades within Credit Accounts can be extended to include complex strategies, and users have permissionless control over their funds. Gearbox’s unique multicall features make it easier to execute complex trades and strategies.One of the unique features of Gearbox is that it offers 0% funding rates. The leverage is executed with real assets on third-party protocols, which means there is no short/long ratio that needs to be maintained with funding rates. This makes it easier for other protocols to offer leverage to their users with the help of Gearbox Protocol, without modifying anything in their own architecture.Notably, all trades and operations happen on third-party protocols, such as Uniswap, Curve, and Yearn. This means that assets are never in custody of any one person or company, and the protocol does not have its own order books or control secondary market liquidity.In order to function sustainably, Gearbox Protocol has a unique feature that sets it apart from other DeFi protocols — the Reserve Fund. This fund is in place to ensure the solvency of the protocol and to protect liquidity providers from suffering significant losses.The Reserve Fund is made up of LP tokens generated by Gearbox treasury fees. Unlike other protocols where these fees remain idle, the Gearbox treasury actively uses them to become a liquidity provider to the pool. This helps to ensure that the protocol keeps growing and remains stable.One of the attractive features of Gearbox Protocol is its Reserve Fund. If a Credit Account is closed with a loss for the pool due to bad or untimely liquidation, the Reserve Fund is used to cover the losses, thus providing an additional level of protection to liquidity providers. Gearbox Protocol automatically burns a portion of the Treasury’s LP tokens to restore the rate of Diesel Tokens, acting as a Reserve Fund that automatically compensates liquidity providers’ losses up to a certain level. The image below shows a snapshot of the DAO Treasury, which backs the Reserve Fund.TrustWalletTrust Wallet is a popular mobile cryptocurrency wallet that allows users to securely store, manage, and exchange a wide range of digital assets. Backed by Binance, one of the largest cryptocurrency exchanges, Trust Wallet is designed to provide users with a simple and intuitive interface. The wallet supports Ethereum Dapps, and therefore includes support for Gearbox.MathWalletAnother popular wallet is MathWallet. MathWallet is a mobile app-based wallet that supports all EVM compatible chains, making this a good option if you are yield farming across multiple Ethereum-based chains. Likewise, MathWallet fully supports interactions with the Ethereum chain, and thus allows you to farm on Gearbox.MathWallet offers mobile apps for both iOS and Android, and also features a browser extension option if you’d like to manage your positions on desktop.MetaMaskMetamask needs no introduction: it is a popular browser extension and mobile wallet that allows users to interact with decentralized applications (dApps) built on the Ethereum network and EVM-compatible chains. The extension integrates with most dApps and provides a seamless, secure, and convenient way for users to access and use decentralized services.Because MetaMask is compatible with EVM, you are also able to use MetaMask to interact with Gearbox.The process of swapping and adding liquidity is mostly similar to that on Ethereum-based lending protocols, so if you are already familiar with lending and borrowing on EVM-compatible ecosystems, you will feel right at home. In this example, we demonstrate how to lend your assets using Gearbox to earn yield.Navigate over to the Gearbox app at app.gearbox.fi, and then connect your wallet, making sure it is connected to the Ethereum Mainnet. Then, you may follow the steps below.Head over to the Earn page by clicking the toggle at the top of the page:2. Choose the token you’d like to farm with. In this case, it is DAI:3. You’ll then need to enter the amount of DAI you’d like to deposit, and then confirm the transaction to deposit your funds.The amount you will be earning is given by the Current APY displayed at the bottom of the interface.4. Approve the transaction, and your tokens should automatically be added to the liquidity pool!GREAT NEWS! Gearbox is now FULLY integrated into the De.Fi SuperApp. This includes our Biggest APY Aggregator — Explore Yield!On a daily basis, we are tracking fresh data about APY and TVL of Gearbox’s Liquidity Pools!Go to APY Aggregator and find the pool that matches your risk appetite: filter out by APY, TVL, Tokens Pair, Pool Category, and more!A Credit Account is an isolated smart contract which contains both the user funds and the borrowed funds. This is where your leverage is. After you open an account, all the operations go through this account and the assets stay on it as well. You can see a Credit Account as your automated DeFi wallet where you not only keep positions, but can also potentially program it the way you want. You can at all times see transactions and assets on Etherscan, obviously.Funds on Credit Accounts are used as collateral for debt, and users can operate these funds by sending financial orders to their Credit Accounts. That could be: margin trading on Uniswap or Sushiswap; leverage farming on Yearn; arbitraging pegged assets on Curve, and more!Gearbox Credit Accounts allow users to use leverage to earn up to 30% APY on stablecoins and ETH — via Curve, Convex, Lido, Yearn, and others. You choose your collateral and your own risk parameters.Ape into complicated strategies with just 1 click: you decide your debt asset (what you borrow) as well as your leverage exposure. Our 1-click multicall will then swap-deposit-stake into a farm of your choosing, while finding the best route for it.Please note: currently, only Leverage Ninjas can open new Credit Accounts. To become one, you need to meet the following requirements:Be ready to borrow $100K minimum: Liquidations work better on large positions, so V2 is starting out with a high minimum. 100K min borrow is like 25K x5 leverage or 50k x3.Post your address on the gov forum: Become a leverage ninja by posting your address on the gov forum. Feel free to include some details in the message! In case you don’t want to connect your address to your twitter account publicly, you can also DM one of the contributors on Discord.So, how to stake on a Credit Account?Firstly, visit the Strategies ListThen, select the Protocol and the pool Category that you’d like to provide liquidity in.3. Now choose the pool that suits your risk appetize the most and ape in!As mentioned earlier, there are two sides to the Gearbox DApp: Lending and Borrowing. If you are a trader who would like to borrow in order to use leverage, you will need to be whitelisted as a ‘Ninja’ for the time being. In order to apply, you may do the following:Head over to the Credit Accounts page by selecting the toggle at the top of the page:2. Choose the token you would like to borrow, and click the ‘Open’ button. You will then receive the following prompt:3. If you would like to proceed, you may post your address on the Governance forum as indicated in the prompt.Lending on Gearbox Protocol can be an attractive option for those seeking passive income with reasonable levels of risk. As a passive lender, you can provide liquidity and earn yield similar to providing liquidity to other protocols like Compound or Aave. As you are only supplying one token, there is no risk of impermanent loss.In terms of other functionality, Gearbox is shaping up to be a pioneer in the undercollateralized DeFi lending space, and a key player in the DeFi 2.0 shift. It does so through the provision of new DeFi primitives, making DeFi’s product offering more in line with that in the TradFi space.As such, as an investor in the DeFi space, you would do well to have Gearbox on your radar.Right now we are GIVING AWAY free copies of Security Bibles — the most comprehensive DeFi Security Guide brought to you by the De.Fi Team!https://join.de.fi/
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