Institutional-grade, no-code lending infrastructure for tokenised assets and RWAs. Real-World Assets need Real-World Lending.
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Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Gearbox Protocol retweeted
Step 1: Tokenize the world
Step 2: Pair the tokens with frxUSD
Step 3: Automate leverage with @GearboxProtocol
Step 4: Profit
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This deep dive from @cryptographicas about one click RWA leverage by @GearboxProtocol is an excellent read, and I think it deserves even more attention.
Starting with the RWA assets: @MidasRWA brought mF-ONE and mGLOBAL, selected and managed by
@FasanaraCapital, a multi-billion AUM institutional credit house. mF-ONE gives onchain exposure to Fasanara’s F-ONE diversified private credit book. mGLOBAL tracks their short-duration alternative debt strategy: trade receivables, invoices, real economy credit. That forms institutional grade Real world yield assets.
Then the dollar $frxUSD: now a mint asset for @MidasRWA’s mF-ONE, and besides USDC, the only stablecoin with that status. Built by @fraxfinance: fully backed by cash-equivalent reserves like BUIDL or WTGXX, which makes it always fiat-redeemable, and matching the GENIUS standard. Important to mention here is the ReserveLink: Yield from $frxUSD’s T-bill reserves gets shared back into DeFi, so partners deepen liquidity from real safe collateral instead of mercenary incentives.
Then the curator @kpk: One of the most disciplined Asset management teams in DeFi, the kind of curation you want when KYC, redemptions, and liquidation logic actually matter.
You can feel that every piece in this stack was carefully chosen.
Gearbox solved the UX issue.
Partners involved accelerating it.
Gearbox is a great example of why you shouldn’t confuse lack of attention with lack of progress, the market hasn’t exactly treated them kindly, but while everyone moved onto the next narrative they just kept grafting on the same core architecture.
This RWA leverage solution they’ve just released is where that strategy is really going to pay off imo.
I’ve spent a bunch of time looking into the different approaches being built here but what @GearboxProtocol has done is by far the most elegant design I’ve seen.
It’s not just better looping ux, looping naturally assumes the underlying asset is liquid and everything settles atomically so you borrow, buy the asset, deposit it again and repeat, which is great for crypto native assets but doesn’t really work for RWAs where you have different redemption timelines, transfer restrictions, KYC requirements and in a lot of cases barely any secondary liquidity.
So gearbox gets around all these issues by using the credit account to borrow the full amount upfront and subscribe directly with the issuer.
Instead of needing 5 or 10 or however many separate loops and waiting through the settlement process each time, you can create the entire leveraged position in one go and redeem the entire thing in one go on the way out.
What I really like about this is that leverage no longer needs to depend on secondary market liquidity to the same extent, because it was always pretty silly to expect an issuer to bootstrap $50m or $100m of dex liquidity before people can take levered positions on the asset.
With this model the position can scale against available credit instead because the credit account is interacting directly with the issuer, which means the lending side can support assets that would have been impossible or just really inefficient to support through the normal loop model.
Even the asset specific stuff like KYC, transfer restrictions, redemption and specialised liquidation logic can sit inside gearbox’s infra rather than the lending protocol having to figure all of that out.
And because gearbox is separating the asset specific execution and risk machinery from the funding layer, I think the bottleneck for lending protocols changes quite a bit too.
Because the problem is no longer whether an asset has enough secondary liquidity to be listed and what really starts to matter is whether somebody can actually originate good borrow demand against the liquidity sitting there.
If an issuer can bring the asset, gearbox can handle the market specific plumbing and a lending protocol can provide the funding, which is just a more efficient way of creating leverage around assets that never really fit the normal money market model in the first place.
These guys have done a great job of addressing the actual market specific pain points and creating a structure where everybody wins, RWA issuers get leveraged distribution without needing deep secondary markets first, stablecoins get a new structural source of borrow demand and lending protocols get access to a much wider set of credit opportunities.
What I’m really excited to see now is how much leverage this can support in practice, because if you can get a decent amount of leverage on assets that were basically unleveragable before then you open up a pretty massive new market.
Really excited to see how this plays out and wishing the chads at gearbox all the best with this launch.
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Gearbox Protocol retweeted
Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Gearbox Protocol retweeted
Gearbox is a great example of why you shouldn’t confuse lack of attention with lack of progress, the market hasn’t exactly treated them kindly, but while everyone moved onto the next narrative they just kept grafting on the same core architecture.
This RWA leverage solution they’ve just released is where that strategy is really going to pay off imo.
I’ve spent a bunch of time looking into the different approaches being built here but what @GearboxProtocol has done is by far the most elegant design I’ve seen.
It’s not just better looping ux, looping naturally assumes the underlying asset is liquid and everything settles atomically so you borrow, buy the asset, deposit it again and repeat, which is great for crypto native assets but doesn’t really work for RWAs where you have different redemption timelines, transfer restrictions, KYC requirements and in a lot of cases barely any secondary liquidity.
So gearbox gets around all these issues by using the credit account to borrow the full amount upfront and subscribe directly with the issuer.
Instead of needing 5 or 10 or however many separate loops and waiting through the settlement process each time, you can create the entire leveraged position in one go and redeem the entire thing in one go on the way out.
What I really like about this is that leverage no longer needs to depend on secondary market liquidity to the same extent, because it was always pretty silly to expect an issuer to bootstrap $50m or $100m of dex liquidity before people can take levered positions on the asset.
With this model the position can scale against available credit instead because the credit account is interacting directly with the issuer, which means the lending side can support assets that would have been impossible or just really inefficient to support through the normal loop model.
Even the asset specific stuff like KYC, transfer restrictions, redemption and specialised liquidation logic can sit inside gearbox’s infra rather than the lending protocol having to figure all of that out.
And because gearbox is separating the asset specific execution and risk machinery from the funding layer, I think the bottleneck for lending protocols changes quite a bit too.
Because the problem is no longer whether an asset has enough secondary liquidity to be listed and what really starts to matter is whether somebody can actually originate good borrow demand against the liquidity sitting there.
If an issuer can bring the asset, gearbox can handle the market specific plumbing and a lending protocol can provide the funding, which is just a more efficient way of creating leverage around assets that never really fit the normal money market model in the first place.
These guys have done a great job of addressing the actual market specific pain points and creating a structure where everybody wins, RWA issuers get leveraged distribution without needing deep secondary markets first, stablecoins get a new structural source of borrow demand and lending protocols get access to a much wider set of credit opportunities.
What I’m really excited to see now is how much leverage this can support in practice, because if you can get a decent amount of leverage on assets that were basically unleveragable before then you open up a pretty massive new market.
Really excited to see how this plays out and wishing the chads at gearbox all the best with this launch.
Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Gearbox Protocol retweeted
Much respect for the good folks at Gearbox for iterating, pivoting and re-inventing themselves in the middle of a bear market.
There's chewing glass, and then there's whatever the crew here has been doing.
Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Frax and @GearboxProtocol launch automated one-click RWA leverage powered by frxUSD.
Starting with @MidasRWA mF-ONE, managed by @FasanaraCapital. The first of many more to come.
Curated by @kpk_io.
1/ Frax and Gearbox are unlocking automated RWA leverage.
frxUSD is now the underlying stablecoin asset for @GearboxProtocol's new RWA market, bringing institutional-grade liquidity to one-click RWA leverage, starting with @MidasRWA mF-ONE.
Leave it to two DeFi OGs to unlock RWAfi.
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KPK expands its RWA offering with @GearboxProtocol's one-click leverage and redeem features!
A new KPK curated pool lets users borrow @fraxfinance's frxUSD against @MidasRWA's mF-ONE and mGLOBAL from @FasanaraCapital
Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Gearbox Protocol retweeted
⚙️ @GearboxProtocol is back!
🌽 Automated leverage via credit lines, better than looping
👋 Will be covering in future DeFi Frontier issues of The Edge Newsletter
⚡️ Powered by Ethereum
Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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RT @MidasRWA: Leveraging security tokens has meant manual loops, and several redemption steps to exit.
@GearboxProtocol now automates it f…
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Automated Leverage for @MidasRWA's mF-ONE and mGLOBAL, managed by @FasanaraCapital, is now live on Gearbox
Eligible users can access one-click leverage and one window redemptions by borrowing @fraxfinance's frxUSD
No waiting, no looping: real RWA leverage. Curated by @kpk
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Correction: risk for these markets is curated by @kpk_io, not the account tagged above.
Only use links shared by @GearboxProtocol, @kpk_io, @MidasRWA and @fraxfinance.
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This is made possible by Retokenisation.
When RWAs are deposited for redemption, your CA creates a phantom position that can be liquidated and behaves like the RWA itself, enabling seamless risk management.
This mechanism has executed $500M+ vol on Midas, Curve and Mellow.
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Users can access one-click leverage and redemption for mF-ONE and mGLOBAL by borrowing @fraxfinance's frxUSD on app.gearbox.finance
Retokenise the world.
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Gearbox Protocol retweeted
Next week, Frax takes another step toward making frxUSD the onchain liquidity layer for institutions.
This time, we’re doing it with a fellow DeFi OG.
Any guesses?
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1/5 We’ve completed the security audit of @GearboxProtocol automated leverage product for Midas' mF-ONE and mGLOBAL assets, covering the integration between Gearbox Credit Accounts and @MidasRWA products
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Leverage an RWA in one click. Unwind the leverage in one click. Even if the asset takes a week to redeem.
Seamless user experience meets async leverage workflow management in Gearbox's redesigned app for our upcoming RWA markets.
Early access: app.gearbox.finance
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The app delivers this experience using a completely new server backend.
This backend, though, is not a dependency. Gearbox will function as a protocol even with the servers turned off.
While the servers are new, the core Credit Account codebase remains the same from 2021.
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The new Gearbox RWA experience features one-click leverage, one-cycle unwinds, async operations with seamless UX, richer data and the same security.
The app is live now, @Securitize and @MidasRWA markets come next.
app.gearbox.finance
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