January 12, 2022, 12:50PM EST
• 5 min read

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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