Gearbox Protocol launches one-click leverage for MidasRWA's mF-ONE and mGLOBAL RWA tokens, streamlining redemption cycles.
DeFi & Yields ·
Gearbox Protocol has made automated leverage available for MidasRWA's mF-ONE and mGLOBAL tokens, which represent investment strategies managed by FasanaraCapital and have grown to $125M+ onchain. The integration allows eligible users to access leverage and complete redemptions through a single interface by borrowing frxUSD from Frax Finance. Because these assets are securities lacking secondary liquidity and flashloan support, traditional recursive leverage loops are not viable; instead, users previously had to manually unwind, redeem, await issuer processing, claim, and repeat—a cycle that could stretch a one-week exit into ten weeks across ten separate redemptions.
Gearbox Credit Accounts streamline this workflow by collateralizing borrowed capital upfront and deploying it to mint the RWAs directly from Midas in one action, eliminating recursive looping. A retokenization mechanism enables the system to work: when positions are deposited for redemption, the Credit Account generates a phantom position that mirrors the RWA's behavior and can be liquidated, letting users exit in a single redemption cycle rather than ten. This approach has processed $500M+ in volume across Midas, Curve, and Mellow. Risk curation for these markets is handled by kpk_io.
The feature is now live on Gearbox's application, though specific adoption figures and performance metrics since launch remain unreported.