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My advice to 20 yo yield farmers as a 30 yo yield farmer
1. Yields are about long term holds, unless you are airdrop farming, don't speculate on them and chase new shiny assets.
2. Understand the asset, it's backing, its redemption mechanism and DD the issuer. If you can't, don't touch it.
3. If you still want to speculate on the yield of an asset, buy @pendle_fi YTs.
4. Oracles are your best-friends, having reserve oracles on your strategies makes surviving 10X easier. Read about oracles in depth here: nitter.net/GearboxProtocol/status…
5. Check the Interest Rate curve. Check at what utilisation it'll be more expensive to borrow than the underlying yield you get paid.
6. Check the liquidity of the asset you want to farm and the routes the protocol has available. You don't want to get stuck on an illiquid asset. This also decides your slippage, which can cost months of yield.
7. If airdrop farming, check with the project if they'll have varying terms for the farmers. You don't want to pay borrow costs and then be left with a lot less than you expected.
8. Don't farm with your entire stack. Even the best of assets depeg, keep some to add to your stack later.
9. Don't leverage farm assets below 88 LTV with more than 50% of max leverage. (especially without fundamental oracles)
10. Don't leverage farm unless your APY is at least 2.5X of the underlying asset with leverage.
11. Lend part of your stack. You wont have to actively manage this and will be able to focus on your main farms much better.
12. Always compare projected vs. realized returns after gas, borrow, and slippage.
13. Stay in touch with your curator, check what changes they are planning and adjust accordingly. Curator channels are live on Gearbox.
Crypto class of 2021
Give advice to those just starting in crypto
The topic can be anything related to crypto
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everyone remembers gearbox as composable leverage. true DeFi summer vibes...
then tokenization made DeFi asynchronous.
now gearbox is programmable leverage for any asset class.
maximum capital efficiency.
fully onchain.
zero reliance on counterparties.
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Muggles⚙️🧰 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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Muggles⚙️🧰 retweeted
This is good
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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Muggles⚙️🧰 retweeted
Increasingly impressed with how protocols like @GearboxProtocol and @AlchemixFi are making you 'feel' something in their latest videos.
Feeling is a subtle thing. Go find the vids and check em out.
DeFi is back!
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Everyone working RWA knows the catch. You can't get levered exposure unless the issuer bootstraps a real secondary market first. Gearbox just shipped a way around it and nobody's looking yet
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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Muggles⚙️🧰 retweeted
I wanna pull the slider to maximum.
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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Muggles⚙️🧰 retweeted
“If an issuer can bring the asset, gearbox can handle the market specific plumbing and a lending protocol can provide the funding”
The ideal mechanism. If you are a lending protocol still trying to figure out RWAs and quality RWA leverage, let us take care of that for you.
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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Literally could not have said it better myself.
This is the absolute best description of the bottlenecks RWAs and protocols faced, whats needed for efficient securities leverage and how we designed to make it function without any reliance on liquidity at all.
Love this
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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Muggles⚙️🧰 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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Muggles⚙️🧰 retweeted
This is the big news.
The ONLY two eligible Stablecoins are USDC and frxUSD.
One more step further to become THE default for DeFi and RWA.
-Frax
2/ Another institutional milestone for frxUSD:
As part of this launch, frxUSD is now a mint asset for @MidasRWA mF-ONE.
Besides USDC, frxUSD is the only stablecoin with this status.
That means frxUSD is becoming part of the primary flow for institutional onchain assets.
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Muggles⚙️🧰 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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Muggles⚙️🧰 retweeted
The @kpk_io are another long running sponsor of @edge_pod and I consistently hear builders and users sing their praises 👏
Chatted with 15+ curators regarding their viewpoints and risk strategy around RWAs and nobody comes close to KPK
For our users, we saw nobody better to manage the risk for our markets.
Truly excited for this
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Muggles⚙️🧰 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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Muggles⚙️🧰 retweeted
The @Frax strategy:
¤ Build a fully backed institutional stablecoin
¤ Connect it deeply across DeFi
¤ Share reserve economics with partners
¤ Make frxUSD the default liquidity and subscription asset for onchain markets
Excited to cook with DeFi OG @GearboxProtocol.
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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Chatted with 15+ curators regarding their viewpoints and risk strategy around RWAs and nobody comes close to KPK
For our users, we saw nobody better to manage the risk for our markets.
Truly excited for this
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
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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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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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Muggles⚙️🧰 retweeted
2/ Another institutional milestone for frxUSD:
As part of this launch, frxUSD is now a mint asset for @MidasRWA mF-ONE.
Besides USDC, frxUSD is the only stablecoin with this status.
That means frxUSD is becoming part of the primary flow for institutional onchain assets.
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Muggles⚙️🧰 retweeted
Most tokenized assets just sit in wallets. no loops, no leverage, no capital efficiency.
@GearboxProtocol is building the leverage layer for RWAs, starting today with @MidasRWA mF-ONE and mGLOBAL.
Check it out!
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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