Edge
Overview
Chaos Labs is excited to announce our strategic partnership with Gearbox Protocol, a DeFi leader known for its Credit Account abstraction that unifies lending and prime brokerage. This collaboration aims to pioneer risk management strategies and ensure the secure and resilient growth of the Gearbox ecosystem.
Gearbox Protocol: Innovating DeFi
Gearbox Protocol stands out by integrating lending and prime brokerage into a seamless platform. Lenders can deposit assets to earn passive yields, while users create spot leverage positions across DeFi by borrowing these assets. This partnership will significantly enhance Gearbox’s capabilities, ensuring it maintains its competitive edge and continues to expand its ecosystem.
Risk Monitoring and Alerting Platform
At the core of this partnership lies Chaos Labs' state-of-the-art Risk Monitoring and Alerting Platform. This comprehensive system offers detailed analytics and observability, providing Gearbox users access to vital risk intelligence. Designed to deliver profound insights into the protocol's overall risk profile and health, the platform supports high-level decision-making with critical data on protocol assets and activities.
Comprehensive Risk Management Approach
Our collaboration equips Gearbox Protocol with a robust risk management strategy covering various critical aspects:
- Gauges: Recommending optimal Quota APY Rates to maximize usage and cap risk.
- Static Fees: Optimizing Quota Flat Fee Rate and Liquidation Fees to minimize exposure in extreme scenarios and ensure liquidations.
- Asset Liquidation Threshold: Evaluating value at risk for each collateral asset and recommending Liquidation Threshold (LT) to maximize leverage with limited risk.
- Asset Trading Leverage: Setting minimum margin requirements for leveraged trading assets.
- Protocol Leverage Levels: Recommending safe bounds for exposure leverage in farming and restaking protocols.
What’s Next
As we move forward, our commitment remains unwavering: to push the boundaries of DeFi risk management and security. We are excited to support the growing Gearbox community and continue developing our products to protect and optimize the protocol.
If you have any questions or comments, feel free to contact us or reach out on Discord. Stay tuned for more updates as we embark on this exciting journey together!
Learn More About Gearbox Protocol
For those eager to delve deeper into Gearbox Protocol and explore its innovative mechanisms, we invite you to read more and visit the official Gearbox Protocol website.