A Lending Renaissance

Kinji Steimetz

May 17, 2024 ⋅ 19 min read

Explore the resurgence of decentralized finance (DeFi) with a focus on Gearbox, an undercollateralized lending protocol poised for a 50% upside. This report delves into key insights, including the integration of liquid restaking tokens (LRT) and the potential for sustained growth in a bullish market. While established lending protocols like Aave and Compound face criticism for their low Loan-to-Value ratios, Gearbox emerges as a promising player with a return on assets seven times higher. Discover the bull case for onchain lending, alternative models like Isolated Pools, and the unique advantages Gearbox holds in the evolving DeFi landscape. Assess the risks and opportunities, with a detailed case study on the impact of different lending models. Finally, gain insights into Gearbox's potential for capitalizing on emerging trends like Liquid Restaking Tokens, Ethena, and general yield farming, projecting a 50% upside for the GEAR token.

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