Unlocking credit for RWAs
Purpose-built for RWAs, Gearbox’s lending infrastructure combines capital efficiency, compliance-aware execution, and institutional-grade leverage in a way no existing onchain lending protocol can.
Most lending protocols treat RWAs like any other ERC-20 token. While this enables basic compatibility, it prevents enforcement of issuer-defined rules such as redemption, settlement, withdrawals, and deposits, leaving RWA credit structurally limited.
Gearbox is built differently. Credit is extended at the RWA protocol level, not just the token level. Credit Accounts interact directly with issuer contracts, allowing purpose-specific rules to be enforced by design. This enables compliant, programmable leverage optimized for RWAs, without compromising issuer controls or asset mechanics.
No DEX dependency
Gearbox is built to work with RWA-specific on-chain logic. Credit Accounts interact directly with issuer contracts, ensuring leverage respects the asset’s native lifecycle by design.
This direct integration allows credit users to mint and redeem RWAs with borrowed capital, bypassing secondary markets like DEXes altogether.
As a result:
Issuers save millions of dollars for bootstrapping and subsidizing DEX liquidity
Users save months of yield by always redeeming at face value instead of selling at discount
Launch faster, focus on distribution
Traditional looping methods don’t suit RWA leverage. They fragment UX with multi-step, multi-protocol transactions and become highly capital-inefficient when redemption periods are long.
Most lending protocols require 5+ transactions across the lending platform and the asset issuer to take a leverage on RWA token, effectively limiting access to advanced on-chain users only.
Gearbox's Benefits:
Zero DEX Liquidity Required: With Gearbox, leverage can go live on day one. It eliminates the need for DEX liquidity seeding, working at any size.
Improved distribution: User can enter leveraged position in one transaction.
Capital savings worth months of yield:
Save time up to 8 periods of native redemption.
Capital requirements are reduced by 10x.
Save fees equal to a month of farming yield.
Risk Control: Automated deleverage reduces liquidation risk, capital stays in user-owned segregated wallet minimizing indirect exposure.
Compliant interaction by Design
It is almost impossible to enforce transfer-agent/compliance obligations on-chain in traditional pools-based lendings. Gearbox is designed for compliant access.
Position Isolation: Each user's position is fully isolated, preventing the mixing of assets or risk between accounts.
Access Control: Supports KYC- and rules-based access control, including per-account whitelists, jurisdiction filters, and configurable limits.
On-Chain Enforcement: Built-in position freezing and granular operation controls (what can be traded, where, and when) allows curator to enforce regulatory obligations on-chain.
If you're building onchain RWA product, reach out to Gearbox to power it with Distribution-focused UX and capital-efficient execution.
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