Gearbox Protocol, known for its decentralized finance (DeFi) leverage and lending products, announced plans to launch its v3 upgrade, Blockworks reported. The specific release date has not yet been determined, but it is expected to be later this month. Building on the success of previous versions, v3 introduces an on-chain credit layer, which the project says will redefine the concept of credit in DeFi, NFT and other fields. The core of v3's innovation lies in account abstraction. Users will gain control over personal credit accounts, which are equipped with smart contracts that manage collateral and borrowed funds. IvanGBi, an anonymous contributor to Gearbox DAO, revealed to Blockworks that the protocol will design credit accounts to unlock composable credit. They will not touch the wallet layer where people own assets, nor the protocol layer where liquidity is located. “On-chain credit will be similar to a store credit card, providing users with a means to access more capital across a variety of DeFi protocols. This system leverages the decentralization and interoperability of blockchain technology to bring a unique level of autonomy and integration to traditional credit models. Gearbox v3 will focus on all-season leverage, unaffected by varying market conditions. It will introduce collateral limits for new and large assets that can be adjusted through governance and interest rate markets.

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