ETH
The KPK ETH Earn Pool channels deposits into Gearbox’s Credit Account system across selected collateral markets. Yield comes from overcollateralised lending rates. Strict utilisation caps, quota limits, and dual-oracle pricing help preserve liquidity buffers and mitigate market risks.
The vault provides exposure to risk-adjusted ETH yield.
Key information
Deposit token
WETH
Chain
Ethereum
Protocol
Pool address
Vault token
Vault standard
ERC-4626
Interest rate model
Utilisation-based
Target utilisation
~90%
Liquidity buffer
~10%
Indicative lending rate at target
~3.0-3.5% APY, including temporary GEAR incentives
Indicative borrow rate at target
~2.5% APY
Performance Fee
0%, fees apply on the borrower side
Strategy
Liquidity from this pool is lent to Gearbox borrowers through the Credit Account mechanism. Borrowers use whitelisted LSTs, LRTs, WBTC, and ERC-4626 vaults as collateral to build leveraged looping strategies, typically targeting AMM, restaking or staking yields.
The pool doesn’t allocate funds on its own. Instead, it relies on borrower activity within pre-defined pool parameters set by KPK. Yield comes primarily from borrower interest rates. Temporary GEAR and other token incentives may supplement returns and are distributed via Merkl.
This pool is designed to support high-demand collateral markets while maintaining strict utilisation caps to preserve instant liquidity for depositors. Native minting and withdrawals are enabled for various assets within Gearbox. Borrowers can enter the native unstaking queue directly through the protocol, allowing positions to unwind gracefully. This avoids common pitfalls in lending markets without native exit support and enables smoother user onboarding, offboarding, and liquidations.
Risk framework
The pool’s parameters follow KPK’s Curation Risk Framework, which governs asset due diligence, tiering, monitoring, and response procedures. All configuration and parameter updates are recorded in the Gearbox Change Log. Entries include scope, rationale, and transaction references for full transparency.
Risk-tier snapshot
Each asset in a KPK Gearbox market is linked to two price feeds: a main oracle and a reserve oracle. These typically combine a market-rate oracle (e.g., Chainlink or RedStone) and a fundamental oracle (reflecting the underlying exchange or redemption rate). The main oracle is used for account valuation and liquidation checks, while the reserve oracle serves as a safety reference during collateral withdrawals or external calls. This dual-oracle setup balances market accuracy with resistance to manipulation, protecting LPs during volatility events such as LST depegs.
Figures are indicative and may change. For current values, see the Gearbox Change Log or Gearbox UI. Quota limits are displayed in native units.
Key risks
Collateral, market and price risk
Oracle manipulation, staleness, or failure
Liquidity crunches and liquidation cascades during stress events
Borrower strategy underperformance or insolvency (bad debt)
Smart contract vulnerabilities and external dependency risks
These risks are actively monitored and managed, but cannot be fully eliminated. For more information, see the Products Disclaimer.
Governance and controls
All critical changes flow through a layered governance structure designed for transparency, operational security, and rapid response when needed. Pool parameters (collaterals, oracles, debt limits, etc.) are updated by KPK through the Market configurator, with changes executed via a time-locked process:
Market configurator: Configures curated markets. One configurator can manage multiple markets
0x1b265b97eb169fb6668e3258007c3b0242c7bdbeTimelock: Enforces a minimum 24-hour delay between approval and execution of pool changes
0xB680c52D339656C5808Df9c426DF1A2103Ed945aEmergency admin: Can perform a limited set of emergency actions (e.g. pause pools) without delay to protect solvency. See Gearbox Permissionless Docs for more details.
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