Gearbox Protocol is renowned for its easy, boundless leverage. @GearboxProtocol gives you the opportunity to access up to 10x leverage to maximize your returns. It operates through Credit Accounts, which are isolated smart contracts. These contracts combine your funds (which also serve as collateral for your leverage) with the leverage funds you obtain.
The best part is that you can use these funds across multiple DeFi protocols like @Uniswap, @eigenlayer, @CurveFinance, @LidoFinance, and more. If high-risk strategies aren't your style but you own valuable assets, you can deposit them and earn passive yield with peace of mind.
We found it delightful to read all the documentation of Gearbox. It's very well written and understandable for both passive lenders and active borrowers/leverage takers. Give it a try whether you are on one side or the other!
https://t.co/iPe9wHTwuP
Now, let's explore the governance model of Gearbox:
Did you know Gearbox Protocol has had no core team since day one? No central authority here! It’s all about the community. The DAO consists of community multisigs and hundreds of token holders.
While most DAOs started with 1 token = 1 vote, Gearbox realized from the start that this was not fair. With the core team and contributors holding more tokens, they could outweigh even a large group of DAO members. Thus, a fair distribution of voting power was introduced: core members have 1 $GEAR = 0.125 voting power, core contributors have 1 $GEAR = 0.25 voting power, and community members hold the full 1 vote per token.
Additionally, the company wallet (holding 11% of all shares) and the DAO wallet (holding 51% of all shares) do not have the right to vote on most proposals unless eligible. This ensures community voices are over 2x stronger in voting power than early contributors and initial core members combined. This prevents misuse of power and promotes a democratic decision-making process.
How to become a member? It’s as simple as joining their Discord, making friends, having conversations, and getting some $GEAR to stake for voting eligibility. Engaging actively in the community helps you gain insights and build relationships, making it easier to participate in governance.
One of our favorite aspects is the regular voting cycle for setting up Gauges, approximately every 7 days (though sometimes it can be longer). Members vote on the extra quota interest rate a borrower pays—setting up the Gauges. This creates an intriguing game theory: borrowers want lower rates, lenders want higher returns, and protocols aim to attract more borrowers. If lenders get higher returns, it can result in fewer borrowed funds. Conversely, if borrowers get lower costs, protocols will attract more borrowers, but it might reduce the number of lenders. The balance game begins and never stops!
You can participate in this voting game theory through our mobile app using your mobile wallet as @zerion or @myetherwallet to get the most out of it and never miss a round!
https://t.co/1piLvyaoeR
In conclusion, Gearbox Protocol offers a unique blend of high leverage opportunities and community-driven governance. Whether you're looking to maximize your profits through leverage or earn a passive yield with your assets, Gearbox provides the tools and community to support your goals. Join the Discord, get some $GEAR, download Goverland, get involved, and see how you can benefit from this innovative DeFi protocol.
#DeFi #YieldFarming #DAO #Governance #Decentralization #Goverlander #Goverland #GearboxProtocol #CryptoFinance
