Gearbox: Composable Leverage and Capital Efficiency
Quick take
- Over-collateralized loans on platforms like Maker, Compound, and Aave have seen significant growth in recent years.
- Undercollateralized lending improves capital efficiency and unlocks powerful financial mechanisms but remains largely unexplored in DeFi.
- Gearbox is a generalized leverage protocol that offers undercollateralized loans using a new DeFi primitive called credit accounts.
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Author: Afif Bandak
