Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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Gearbox

# Gearbox Revenue Methodology

## 1. Overview

Revenue is measured as the portion of fees retained by the Gearbox protocol, representing the earnings generated from its credit marketplace before operating expenses and token incentives. For Gearbox V1, revenue is derived from diesel assets minted to the treasury on repayment and withdrawal fees collected when lenders withdraw liquidity from pools. For Gearbox V3, revenue is calculated as the protocol's share of interest rate markups and liquidation fees accrued across active credit managers and lending pools. This metric is utilized to highlight the protocol's capacity to capture value from leverage and credit provision.

## 2. Data sources

- **Blockchain events**: `RepayCreditAccount`, `LiquidateCreditAccount`, and `CloseCreditAccount` events from `CreditManager` contracts, `CloseCreditAccount` and `LiquidateCreditAccount` events from `CreditFacade` contracts, `RemoveLiquidity` events from `Pool` contracts, `Repay` events from `PoolV3` contracts, and `LiquidateCreditAccount` and `PartiallyLiquidateCreditAccount` events from `CreditFacadeV3` contracts, covering Ethereum, Monad, and Plasma
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Gearbox V1 revenue extraction

- **Purpose**: Capture treasury income and withdrawal fees for Gearbox V1
- **Logic**: ERC-20 asset transfers to the protocol treasury address are parsed. Transfers are filtered to include only those originating from allowlisted transactions, which are identified by `RepayCreditAccount`, `LiquidateCreditAccount`, and `CloseCreditAccount` events from `CreditManager` contracts, `CloseCreditAccount` and `LiquidateCreditAccount` events from `CreditFacade` contracts, and `RemoveLiquidity` events from `Pool` contracts. Additionally, transfers of diesel assets from the null address (representing mints to the treasury) are included. Treasury withdrawals (where the sender is the treasury) and transfers of Gearbox V3 pool assets are explicitly excluded. The remaining transfer amounts are classified as diesel assets minted to the treasury and withdrawal fees, which are valued 1:1 with the underlying pool assets.
- **Key fields**: `block_timestamp`, `transaction_hash`, `token_address`, `amount`

### Component B: Gearbox V3 interest markup accrual

- **Purpose**: Calculate the protocol's share of interest and quota markups for Gearbox V3
- **Logic**: Daily pool rates and borrow balances are tracked. The base interest index change is calculated as the ratio of the current base interest index to the previous day's index. For each credit manager, the interest markup is calculated by multiplying the credit manager's borrowed balance by the base interest index change and the credit manager's interest fee rate (expressed in basis points). Quota markup is calculated by applying the interest fee rate to the credit manager's proportional share of the pool's total quota fees. On chains with pruned historical state where daily index reads are unavailable, the markup is estimated from the repaid profit reported in `Repay` events from `PoolV3` contracts.
- **Key fields**: `base_interest_index`, `total_borrowed`, `credit_manager_borrowed`, `fee_interest_bps`, `quota_revenue`

### Component C: Gearbox V3 liquidation fee extraction

- **Purpose**: Calculate the protocol's share of liquidation fees for Gearbox V3
- **Logic**: Liquidations are identified using `LiquidateCreditAccount` and `PartiallyLiquidateCreditAccount` events from `CreditFacadeV3` contracts. For full liquidations, the protocol fee is calculated as the pool's profit (extracted from the corresponding `Repay` event from `PoolV3` contracts) minus the accrued fees read from the block prior to the liquidation. For partial liquidations, the protocol fee is extracted directly from the fee field of the liquidation event.
- **Key fields**: `profit`, `accrued_fees`, `fee`, `repaid_debt`

### Component D: Protocol share allocation

- **Purpose**: Apply treasury split rules to determine the final protocol revenue
- **Logic**: The protocol's share of Gearbox V3 interest markups and liquidation fees is determined based on the pool's treasury configuration. For Gearbox V3.0 pools, 100% of the treasury income is retained by the protocol, except for designated curator-owned pools where 0% is allocated. For Gearbox V3.1 pools, the protocol's share is determined by the on-chain splitter's DAO share, which is defaulted to 50% if no split has been recorded.
- **Key fields**: `protocol_share`, `dao_share`

### Component E: Normalization and USD conversion

- **Purpose**: Normalize asset amounts and convert them to USD
- **Logic**: All collected revenue amounts from Gearbox V1 and Gearbox V3 are normalized by their respective asset decimal precisions. The normalized amounts are then multiplied by end-of-day asset prices to obtain the USD value. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `decimals`, `price_usd`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

GearboxGEAR

Revenue

Revenue

Competitive landscape

Chain breakdown