Connected Protocols & Capital Flow
Gearbox routes capital through a curated set of approved protocols. Each Credit Account can execute multi-protocol strategies via permissioned adapters - combining lending, LP, and yield strategies in one position.
Capital Flow Architecture
How funds move from Credit Account -> Protocol -> Returns
Credit Account Capital Flow
A Credit Account can compose multiple strategies simultaneously. Each adapter call is recorded on-chain, and the account's cumulative health factor determines liquidation eligibility.
Connected Protocol Selector
Select a protocol to analyze its Gearbox integration: APY, slippage characteristics, and risk profile.
Multi-Hop Strategy Simulator
Simulate a leveraged position that routes through multiple protocols. Adjust the amounts to see how capital compounds across integrations.
How the Adapter System Works
Deposits collateral (ETH, wBTC, or stablecoins) into a new Credit Account. The account is a minimal proxy contract with allowlisted token holdings.
Using the collateral as backing, the Credit Account borrows DAI/USDC from Gearbox's liquidity pool. The borrow amount is limited by the collateral factor and strategy type.
When the user executes a strategy, Gearbox's adapter contract forward calls to the target protocol. The adapter enforces position limits, slippage checks, and reverts on unauthorized tokens.
On every block, the Credit Account's health factor is evaluated. If HF < 1.0, the position becomes eligible for liquidation by any third party.
When the user closes the position, the adapter unwinds the external protocol position, repays the pool, and returns net profit minus fees to the Credit Account owner.