Before we get started, this is not a recommendation or endorsement to buy any token mentioned.
It seems like forever ago, but in the height of 2021 yield farms, we covered Alpha Homora, a leveraged yield farming protocol, where you can wind up borrowed positions to farm liquidity provisions and earn higher rewards. Leveraged yield farming relied heavily on inflationary token rewards, which since have crashed in price.
Since Alpha Homora, a few things have changed: crypto markets crashed, destroying many of the inflationary tokens necessary for leveraged yield farming, and DeFi has been stress-tested to a point that we know better which protocols work in any market structure.
Gearbox is a newer generalized leverage protocol. Similar to Alpha Homora, it has two sides to it: passive LPs who earn yield by providing single-asset vs active farmers who borrow those assets to trade or farm with up to 10X leverage.
Gearbox Protocol is leverage-as-a-service for DeFi farming strategies, allowing anyone to use DeFi-native leverage in a composable, automated way. If I borrow an asset on Gearbox, I can simultaneously use this as leverage in another protocol to farm more yield. Gearbox currently supports these DeFi protocols on Ethereum Mainnet: Uniswap, Curve, Convex, Lido, SushiSwap, and Yearn. For example, I can borrow ETH and wind up a larger position of Lido stETH or maybe hold a larger position in the Curve stETH/ETH LP.