Architecture

Overview

Gearbox is two-side protocol, on the left side you can see Liquidity Proviers who are interested in passive investent strategy. They provide money and get APY. This part is similar to major lending protocols like Aave or Compound.

On the right side, you can see a trader, who is intereested to get leverage and use it accross diffeerent DEFI protocol. He opens a Credit Account providing initial funds, and Credit Account takes margin loan from the pool. After opening credit accoount, it has both trader's and borrowed funds on it. It's where leverage comes.

Credit account

Credit Account is new DEFI primitive, technically it's an isolated smart contract, which allows to execute financial orders (interactions with third-party protocols), but do not provide direct access to the funds on it.

Credit Account executes transaction on behalf of itself, however, each transaction to be executed should pass following requrements:

• Target contract should be in whitelist (allowed contract)
• Tokens which would be get as result should be in (allowed token list)[]
• Credit Account should have enough collateral to pay debt + interest rate back (health factor >1) after transaction

Technically, Credit Account is a simple contracts which is used for transactions, all policies mentioned about are kept in CreditManager contracts. Pools - CreditManagers are connected with one-to-many relationship, list of available pools & credit managers are availalbe through ContractRegister which is a part of Core contracts.

Core contracts

Core contracts provide unified services for contracts discovery, price feeds, access control, etc.

Contract	Responsibility
AddressProvider	Keeps addresses of core contracts
AccountFactory	Supplies reusable credit accounts
ACL	Manages access control
ContractsRegister	Pools & CreditManagers contrascts register
DataCompressor	Prepares data for offchain services
PriceOracle	Provides price data for CreditManager
WETHGateway	Converts ETH to WETH and vice versa