Institutional-grade risk analytics are now available for Gearbox

We’re excited to share that Gearbox is now integrated in our DeFi Risk Radar, offering 18 indicators for analyzing risk on the protocol

Lucas Outumuro
IntoTheBlock
2 min readAug 30, 2024

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About Gearbox

Gearbox Protocol is a DeFi platform that enables users to amplify their returns through leveraged yield farming, trading, and lending. By using credit accounts, users can borrow assets and deploy them across various protocols seamlessly, optimizing yields with minimal effort. This makes Gearbox a valuable tool for maximizing capital efficiency, appealing to both retail and institutional investors looking to scale their DeFi strategies.

Risk Indicators for Gearbox

The Gearbox Risk Radar offers over 18 specialized indicators that provide deep insights into various risk factors. These include key metrics such as borrow distribution, net loan flows, whale credit history, and more. To help you understand how these are used, let’s take a look at one particularly insightful indicator: the Leverage Ratio.

The Leverage Ratio indicator displays the average leverage across all positions within the Gearbox protocol. Currently, the leverage ratio stands at 450%. Given that Gearbox allows up to 10x leverage on most assets, this suggests that users are maintaining a relatively conservative leverage approach, which is crucial for mitigating overall risk.

Deep Dive into Asset-Specific Indicators

For users looking to explore risks associated with specific assets, the platform offers detailed, asset-specific indicators. These can be accessed via the top-right menu, allowing users to dive deeper into the risk profile of each asset.

By selecting an asset, users gain access to specific risk indicators that offer a granular view of potential risk factors.

You can visit the Gearbox Risk Radar here: https://defirisk.intotheblock.com/metrics/ethereum/gearbox

About IntoTheBlock

IntoTheBlock provides advanced on-chain analytics and risk indicators for DeFi protocols like Gearbox. Our mission is to empower users with the data and insights they need to make informed decisions in the DeFi space.

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Lucas Outumuro
IntoTheBlock

Head of Research @IntoTheBlock. Actively researching token economics, DeFi and technology broadly. Twitter: https://twitter.com/LucasOutumuro