Gearbox Protocol – Monad LP Opportunity

Overview

Gearbox is a composable leverage protocol enabling undercollateralized on-chain borrowing through Credit Accounts. Current focus: yield strategies via Midas-issued collateral.

Two ways to participate:

	Lending	Leverage
APY	6-9%	Up to 20%
Role	Passive liquidity provider	Active carry trade
Risk	Indirect exposure, protected by liquidations	Direct collateral exposure
Lock-up	None	None (subject to Midas redemption schedule)

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Lending Side (Passive)

How it works: Deposit USDC into the Gearbox pool. Earn yield from borrowers who use Credit Accounts to execute carry trades, borrowing at pool rates to deploy into higher-yielding RWA collateral. Gearbox solvency guardrails protect against borrower default.

Deposit here: Gearbox USDC Pool

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Leverage Side (Active)

How it works: Open a Credit Account, borrow USDC, and deploy into Midas collaterals. Capture the full carry trade spread with leverage.

Yield source: Direct exposure to mEDGE yield minus borrow cost. Net APY can reach 20% at max leverage (~7x).

Zero slippage execution: Gearbox direct integration allows entry/exit without DEX slippage. Redemptions execute at NAV.

→ How Direct Redemptions Work

Open position here: mEDGE Leverage Strategy

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Risk Framework

Collateral Exposure: mEDGE

Both sides have exposure to mEDGE (Midas EDGE vault). Current composition:

→ View mEDGE Holdings

What happens if mEDGE depegs?

Scenario	Lending Side	Leverage Side
Depeg <13%	Protected: liquidations trigger, borrowers absorb loss.	Position may be liquidated.
Orderly wind-down	Redemptions via direct integration at NAV	Exit at NAV, no slippage

Gearbox Solvency Guardrails

• LTV limits: Credit Accounts enforce max leverage

• Liquidation threshold: Positions liquidated before insolvency

• Price feeds: Oracle-based with sanity checks

• Audits: Security repo

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Summary

	Lending	Leverage
Target LP	Passive yield seekers	Active DeFi users
APY	6-9%	Up to 20%
Risk	Lower (liquidation buffer)	Higher (direct exposure)
Effort	Deposit & forget	Manage position
Deposit	Pool	Strategy

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Gearbox LP Demo Day – Blurb

Project: Gearbox Protocol

Project Description: Composable leverage protocol with Credit Accounts enabling undercollateralized on-chain borrowing. Two LP opportunities on RWA yield strategies:

• Lending side: Passive yield from borrower demand (6-9% APY)

• Leverage side: Active carry trade via Credit Accounts (up to 20% APY)

Max TVL capacity: 50M USDC in mid-term (nearest month) until considerable yield dilution. Further expansion driven by new collaterals addition.

Yield APY: 6-9% (lending) / up to 20% (leverage)

Source of yield: Carry trade between Gearbox borrow rates and Midas RWA collateral (mEDGE). Lenders earn borrow interest + MON incentives; leverage users capture full carry.

Duration of deal: No lock-up

Audit link: https://github.com/Gearbox-protocol/security/tree/main/audits

Your contact: Telegram - @OxIlya