Gearbox Is Releasing Its V3 — Here’s What’s New

Latest features include a new lending pool and the introduction of immutable smart contracts

article-image

Kapustin Igor/Shutterstock.com modified by Blockworks

share

Gearbox, a composable leverage protocol, has released a V3 upgrade that aims to redefine leverage and lending.

This latest upgrade will build on top of Gearbox’s V2 capabilities by bringing on new liquidity pools, tokens, and the introduction of an immutable smart contract — which is designed to enable better user experience (UX) and allow for further cross-chain deployments without increasing risk.

A composable leverage protocol, in Gearbox’s case, aims to improve capital efficiency by giving users access to leverage across various DeFi protocols.

In V2, the experience around limit orders and portfolio automation is largely restricted to centralized exchanges or layer-2 protocols, where much of the work is handled off-chain, the pseudonymous mugglesect told Blockworks. 

“We will be bringing automation on-chain, where you can effectively create bots, which are scripts that would run a trading strategy without you having to custody the customer’s funds,”    mugglesect said. “Effectively, operating a trustless fund on-chain becomes possible with V3.”

Liquidity pool expansion

Liquidity pool providers will have the option to remain on the existing Main Bluechip lending pool or move to a new “Alpha passive” lending pool.

Unlike traditional DeFi lending protocols — where borrowers maintain custody over borrowed funds — mugglesect said Gearbox borrowers would not have custody over the assets they borrow from liquidity providers. 

“Borrowers actually never have custody over [assets], and [aren’t] allowed to swap them or put them into protocols that can be considered unsafe or illiquid,” he said. 

The up-and-coming upgrade, however, is set to allow liquidity providers the option to opt into higher risk exposures and reap a higher annual percentage yield (APY) in return. 

“Effectively the decision will be made by the lenders,” he said. 

Potential tokenomics revenue share

The V3 upgrade is also bringing to market “Minimum Viable Tokenomics” for GEAR, the protocol’s native token.

GEAR stakers, as a result, will be able to determine where the revenue earned through the Alpha Pool should go — and how it should be distributed.

Although profit sharing for GEAR holders is not yet available, the protocol has indicated that profit sharing is possible down the line.  

“What is important is that there is an extra revenue source now,” mugglesect said. “Effectively, the devs create the capability of token utility via staking while the DAO decides how they want to actually execute the value accrual.”

Code for Gearbox’s V3 upgrade is currently being audited. A launch date is likely to be finalized by the end of the second quarter.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million