January 12, 2022, 12:50PM EST
• 5 min read
Gearbox: Composable Leverage and Capital Efficiency
- 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.