# Raft vs Gearbox: Comparing stETH Leverage Titans

By [Raft](https://paragraph.com/@raft) · 2023-04-18

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In the world of DeFi, various protocols offer different methods for users to **generate leverage**. 

In this article, we compare **Raft's one-step leverage** mechanism with that of Gearbox, one of the most established protocols for composable leveraged strategies in the space. 

Our goal is to **positively highlight the differences** between the two while casting light on their unique features.

Gearbox Overview
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[Gearbox](https://gearbox.fi/) is a well-known composable leverage protocol with two sides: **passive liquidity** providers who earn low-risk APY by providing single-asset liquidity, and **active borrowers** who borrow those assets to trade or farm with up to 10x leverage in a single click. 

Key aspects enabling leverage in Gearbox include **Credit Accounts**, which "bind" together lenders and borrowers in this equation.

Raft vs Gearbox: Comparing stETH Leveraging Approaches
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### Barriers to Entry

Gearbox requires users to satisfy certain conditions, such as a **minimum $100k** borrow and address approval on their governance forum. 

In contrast, Raft only requires a **minimum position size of 3,000 borrowed R**, making leverage with R permissionless and open to everyone.

### Borrow Rate

Gearbox users **pay borrowing fees**, which are subject to fluctuations in borrowing rates. 

Raft users, however, **do not have to pay any borrowing fees**, allowing them to maximize their leverage strategy profitability.

### Collateral Choice

While Gearbox allows users to deposit **various collateral tokens**, Raft only accepts ETH, stETH, or wstETH as collateral. 

Raft's design choice **focuses on stETH** as the most efficient and censorship-resistant collateral available in DeFi.

### Liquidation

Raft's liquidation system is more favorable for borrowers and liquidators compared to Gearbox. 

Borrowers lose less of their collateral in Raft, while liquidators earn more for performing liquidations.

### Slippage

Raft allows users to choose their slippage tolerance level and know exactly under which conditions the swap is reverted due to market conditions, unlike Gearbox.

Wrap Up
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Raft **democratizes the leverage process** for a wide user base without imposing limitations on borrowed amounts or requiring approval from governance members. 

As the primary "lender", Raft eliminates concerns about **liquidity availability** and **fluctuations in borrowing costs**, ensuring a smooth borrowing experience. 

Moreover, Raft implements a **robust liquidation system** that effectively mitigates the risk of contagion effects and maintains the overall stability of the platform without intervention from protocol governance.

Find here more info about [One-Step Leverage](https://mirror.xyz/0xa486d3a7679D56D545dd5d357469Dd5ed4259340/jMa-8jFfgZa2UAvRZ3n9phn8jzN27p4X_357yCHKVH4).

Jump on board the Raft [Discord](https://discord.com/invite/raft-fi) and get involved in the R-evolution of decentralized finance.

Useful Links
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*   Website: [https://www.raft.fi/](https://www.raft.fi/)
    
*   Twitter: [https://twitter.com/raft\_fi](https://twitter.com/raft_fi)
    
*   Telegram Channel: [https://t.me/raft\_fi](https://t.me/raft_fi)
    
*   Telegram Group: [https://t.me/raft](https://t.me/raft_chat)

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*Originally published on [Raft](https://paragraph.com/@raft/raft-vs-gearbox-comparing-steth-leverage-titans)*