Gearbox ProtocolMicro-cap

Gearbox Protocol receives a B- risk grade (32/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — 40x leverage across composable DeFi protocols means every connected protocol's risk is your risk, amplified A leverage protocol that lets you borrow up to 40x your deposit and deploy it across DeFi protocols like Curve, Lido, and Aave in a single transaction. It manages $400M with $8M in funding. Its C+ grade reflects the extreme amplification risk where any hack in a connected protocol hits you at 40x.

The key risks identified for Gearbox Protocol are: (1) At 40x leverage, a $5M hack in any protocol where your borrowed funds are deployed becomes a $200M loss. The leverage multiplies every risk by up to 40 (2) Your borrowed funds move through multiple DeFi protocols in one transaction. Security reviewers may miss dangerous interactions between protocols that only emerge in combination (3) If your leveraged position goes underwater faster than bots can liquidate it, the lenders who provided the capital eat the loss with no way to recover it

Gearbox Protocol scores 32/100 across eight risk dimensions: Mechanism Novelty: 5/15, Interaction Severity: 10/20, Oracle Surface: 3/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 4/10. The highest risk area is Interaction Severity at 10/20.

Among 90 rated Lending protocols on Hindenrank, Gearbox Protocol ranks #31 by safety (lowest risk score = safest). Its 32/100 risk score and B- grade place it in the middle tier of Lending protocols.

Gearbox Protocol scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.