In this post: Gearbox Protocol has launched on Etherlink with a USDC vault curated by Re7 Labs. The initiative will introduce institutional-grade strategies to the Tezos Layer 2 through treasury-backed tokens, including mTBILL, mBASIS, and mRe7YIELD. The company operates as the credit layer of decentralized finance, connecting passive liquidity providers with users seeking composable leverage […]In this post: Gearbox Protocol has launched on Etherlink with a USDC vault curated by Re7 Labs. The initiative will introduce institutional-grade strategies to the Tezos Layer 2 through treasury-backed tokens, including mTBILL, mBASIS, and mRe7YIELD. The company operates as the credit layer of decentralized finance, connecting passive liquidity providers with users seeking composable leverage […]

Gearbox Protocol debuts on Etherlink with USDC vault managed by Re7

4 min read

In this post:

  • Gearbox has launched on Etherlink with a USDC vault curated by Re7 Labs.
  • The firm’s Lazarev said the initiative opens up new possibilities for capital efficiency in leveraged strategies since it will enable soft confirmations in 500ms.
  • Re7 said its vault strategy will also benefit Apple Farm Season 2 incentives, combined with GEAR token distributions from the Gearbox DAO.

Gearbox Protocol has launched on Etherlink with a USDC vault curated by Re7 Labs. The initiative will introduce institutional-grade strategies to the Tezos Layer 2 through treasury-backed tokens, including mTBILL, mBASIS, and mRe7YIELD.

The company operates as the credit layer of decentralized finance, connecting passive liquidity providers with users seeking composable leverage across profitable opportunities. Gearbox said the initiative will enable curators to utilize its institutional-grade lending infrastructure to set up lending markets.

Gearbox’s integration opens new possibilities for capital efficiency in leveraged strategies

Founder and CTO at Gearbox Protocol, Mikhail Lazarev, said the firm has been looking for the right L2 to expand Gearbox Permissionless until it found Etherlink’s performance metrics and ecosystem. He argued that the integration opens up new possibilities for capital efficiency in leveraged strategies since it will enable soft confirmations. As previously reported by Cryptopolitan, the community-driven L2 delivers sub-second confirmations with negligible fees. 

Managing partner at Re7 Labs, Evgeny Gokhberg, stated that the company will offer significant expertise as a vault curator. It manages over $700 million TVL across more than 100 pools on 14 blockchains.

The DeFi curator also delivers returns through proprietary risk management frameworks. Gokhberg acknowledged that the vault strategy focuses on looping return-bearing tokens against USDC to boost underlying returns while maintaining conservative risk parameters.

“Etherlink’s infrastructure and Gearbox’s credit layer give us the ideal foundation to scale our strategies. We’re bringing institutional-grade yield to a new audience with the same discipline and risk management we apply across $1B+ in DeFi capital.”

-Evgeny Gokhberg, Managing Partner at Re7 Capital.

According to Gokhberg, the vault will also benefit Apple Farm Season 2 incentives, combined with GEAR token distributions from the Gearbox DAO. Gearbox revealed that its users generated around $2.8 billion in trading volume across Ethereum decentralized exchanges over seven months. The protocol’s TVL also grew by 230% in the first half of 2025 to $400 million.

Anthony Hayot, head of DeFi adoption at Nomadic Labs, argued that having Gearbox launch on Etherlink was a big win for the company. He argued that the integration offers significant institutional credibility and a product that will give real value to Etherlink users.

Gearbox revealed that it has maintained a flawless security record for over four years with zero exploits or bad debt. It has also invested significant amounts in audits by reputable firms, while operating under strict governance structures with 24-hour timelocks for vault parameter changes.

The integration of Gearbox follows a period of significant momentum for Etherlink, which successfully launched Apple Farm Season 2 with over $3 million in incentives. As previously reported by Cryptopolitan, the firm also integrated Curve Finance, enabling low-slippage stablecoin swaps. Etherlink also had a 68.4% surge in TVL in July that positioned it among the fastest-rising Layer 2s.

Etherlink also partnered with Bitcoin capital markets provider Lombard Finance to spur DeFi activity on Tezos. It deployed its staking token called LBTC atop the network.

The integration aims to enable holders to maintain their BTC exposure while earning staking rewards through the Bitcoin staking protocol, Babylon. The initiative has already brought in $2 billion worth of LBTC into circulation across Ethereum, BNB Chain, Ethereum, and more. 

70% of the tokens have been deployed for DeFi use on platforms like Aave and Morpho. Hayot said the company preferred LBTC due to its characteristics, including ease of use and liquidity.

Market Opportunity
USDCoin Logo
USDCoin Price(USDC)
$1.0019
$1.0019$1.0019
+0.06%
USD
USDCoin (USDC) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Recovery extends to $88.20, momentum improves

Recovery extends to $88.20, momentum improves

The post Recovery extends to $88.20, momentum improves appeared on BitcoinEthereumNews.com. Silver price extended its recovery for the second straight day, up by
Share
BitcoinEthereumNews2026/02/05 07:34
Fed Decides On Interest Rates Today—Here’s What To Watch For

Fed Decides On Interest Rates Today—Here’s What To Watch For

The post Fed Decides On Interest Rates Today—Here’s What To Watch For appeared on BitcoinEthereumNews.com. Topline The Federal Reserve on Wednesday will conclude a two-day policymaking meeting and release a decision on whether to lower interest rates—following months of pressure and criticism from President Donald Trump—and potentially signal whether additional cuts are on the way. President Donald Trump has urged the central bank to “CUT INTEREST RATES, NOW, AND BIGGER” than they might plan to. Getty Images Key Facts The central bank is poised to cut interest rates by at least a quarter-point, down from the 4.25% to 4.5% range where they have been held since December to between 4% and 4.25%, as Wall Street has placed 100% odds of a rate cut, according to CME’s FedWatch, with higher odds (94%) on a quarter-point cut than a half-point (6%) reduction. Fed governors Christopher Waller and Michelle Bowman, both Trump appointees, voted in July for a quarter-point reduction to rates, and they may dissent again in favor of a large cut alongside Stephen Miran, Trump’s Council of Economic Advisers’ chair, who was sworn in at the meeting’s start on Tuesday. It’s unclear whether other policymakers, including Kansas City Fed President Jeffrey Schmid and St. Louis Fed President Alberto Musalem, will favor larger cuts or opt for no reduction. Fed Chair Jerome Powell said in his Jackson Hole, Wyoming, address last month the central bank would likely consider a looser monetary policy, noting the “shifting balance of risks” on the U.S. economy “may warrant adjusting our policy stance.” David Mericle, an economist for Goldman Sachs, wrote in a note the “key question” for the Fed’s meeting is whether policymakers signal “this is likely the first in a series of consecutive cuts” as the central bank is anticipated to “acknowledge the softening in the labor market,” though they may not “nod to an October cut.” Mericle said he…
Share
BitcoinEthereumNews2025/09/18 00:23
Wormhole launches reserve tying protocol revenue to token

Wormhole launches reserve tying protocol revenue to token

The post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserve
Share
BitcoinEthereumNews2025/09/18 01:55