Gearbox is gas-efficient uncollateralized protocol for margin trading for traders, liquidity providers & liquidators.
Gearbox combine two modern DeFi concepts - DEXes and Landing protocol to provide first class experience for marginal trading. For the moment, users have to go to lending platform to get a credit, and then they could trade with margin using one protocol, which creates great customer experience and allow to save gas expenditures.
Protocol is developed for 3 customer segments:
For traders Traders could trade with margin by borrow money for their trading putting only 25% of collateral. Protocol security based on dex whitelist operation. All first class DEXes are supported.
For liquidity Providers Earn interest providing their liquidity to traders. LP deposit is protected using risk model. When traders portfolio cross risk threshold, it would liquidated.
For liquidators Liquidators earn money providing liquidations bad traders portfolio
Gearbox contracts are efficient by design. To reduce huge computation, they used math and move all computation for liquidation process only, which could be covered by liquidators premium.
Price steams from ChainLink
Gearbox uses Chainlink price streams to evaluate tokens portfolio. Core contract uses Price Repository to evaluate portfolio, and if it's in red risky zone to liquidate it.
In v2 of the protocol, DAO would be added to manage allowed assets for any particular
Gearbox made using modern upgradable architecture. To achieve that all contracts are stored in address repository. It also requires special scrits for development, but provide more secure way to manage financial things.