The decentralised finance (DeFi) platform Gearbox Protocol, which is well-known for its loan options and leverage, has stated that its v3 upgrade would be released later this month. In order to redefine credit in DeFi, NFTs, and other contexts, the latest version adds an Onchain Credit Layer. Account abstraction, the main innovation of v3, gives users control over specific credit accounts through smart contracts that handle borrowed money and collateral.
The protocol will be designed to unlock composable credit without affecting the wallet layer, where users own assets, or the protocol layer, where liquidity is located, according to Gearbox DAO contributor IvanGBi. Similar to an in-store credit card, on-chain credit will give consumers access to more money via a variety of DeFi protocols. Gearbox v3 will introduce collateral constraints for new and large assets, modifiable through governance and rate markets, and will concentrate on all-seasonal leverage that is not subject to varying market conditions.
Additionally, IvanGBi mentioned that modular and composable pools will be included in Gearbox v3, enabling customers to deploy and redeploy various pools as needed. This might result in Gearbox pools run by gear holders, pools designed especially for KYC-eligible institutions, or other DAOs building their own Gearboxes with unique rules.