Overview
GEARS issues 2x versions of stocks you know as tokens on Robinhood Chain. Each product is one token that tracks one stock at about two times its moves. The first is NVDA 2X, built to hold $2 of NVDA exposure for every $1 you hold.
Each token is a share of its own vault on Robinhood Chain. The vault holds USDG; the exposure is a NVDA perp position on Lighter, held in a GEARS operator account. Three reporter keys sign that account's value and the vault takes it as its NAV, so the NAV is on chain even though the position is not.
Launch order. $GEARS, the house token, launches first on Pons. This site shows its address only once the chain confirms it. The creator tax on $GEARS trades goes to the gearbox treasury, and a share of it opens NVDA 2X: its vault, its pool and its first position on Lighter. TSLA 2X and META 2X are for later; nothing on this site trades them.
A gearbox turns one turn in into more turns out. $GEARS turns this one: a share of its trading fee funds each 2x stock. The site borrows the words of a gearbox for the parts of the product. This table maps each one to its plain term.
| On this site | Plain term | Where it is set |
|---|---|---|
| Band | rebalance band, 1.99x to 2.01x | rebalanceBandBps 100 in the keeper |
| Redline | exposure cap, 2.05x | maxExposureBps 20500 in the keeper |
| Shift back | keeper rebalance trade on Lighter | the keeper |
| Fees | the creator tax on $GEARS trades on Pons | the Pons launch |
| Gearbox treasury | the contract that receives the $GEARS creator tax | PonsBootstrapTreasury |
| Reverse gear | a short launch, later | none yet |
The gearbox treasury
Pons sends the $GEARS creator tax to the gearbox treasury. Part of what it receives pays for running GEARS; the rest is product capital. Product capital is changed into USDG, assigned to a product, and spent on its vault, its pool and the collateral of its Lighter position.
The gearbox treasury is controlled by the GEARS owner wallet. The owner wallet can withdraw from it and can change where Pons sends the creator tax. It is not a locked vault, and $GEARS holders have no claim on it.
How 2x is held
A vault holding equity E keeps a NVDA perp position of notional N on Lighter, with N = 2 × E. When NVDA moves by m, the position gains 2 × m × E and its leverage drifts:
leverage after a move m, from 2.00x: L(m) = 2 × (1 + m) / (1 + 2 × m)
The keeper checks the account and trades the perp back to 2.00x whenever leverage leaves the band, 1.99x to 2.01x. That band is about a 0.5% fall or a 0.5% rise in NVDA from the last trade. The keeper never places an order that adds exposure past 2.05x, the redline; orders that cut exposure always go through.
NAV. Three reporter keys sign the Lighter account's value. The vault accepts a report with two of three signatures and refuses a stale one. All three keys are run by the same operator, so two of three is a check on the software, not on the operator. Without a fresh NAV the vault takes no new deposits and settles no redemptions.
Getting and leaving. New NVDA 2X tokens are issued from GEARS's product capital. Holders get them in the NVDA 2X pool on Robinhood Chain, against USDG, and sell them there. A holder can also ask the vault to redeem at NAV; the request settles at a fresh report once the vault has the USDG back from Lighter.
Worked examples
| NVDA move | NVDA 2X move | Leverage, left alone | What the keeper does |
|---|---|---|---|
| +5.0% | about +10% | 1.91x | trades back to 2.00x long before that |
| −5.0% | about −10% | 2.11x | trades back to 2.00x long before that |
| −0.5% | −1.0% | 2.01x | edge of the band: shifts back to 2.00x |
| −2.4% | −4.8% | 2.05x | redline: only cuts exposure |
Over many moves the result depends on the path, the trades back to 2.00x, funding and fees. Two times the stock's move holds for one move from 2.00x, not for a month.
Costs
| Cost | Rate | Who pays |
|---|---|---|
| $GEARS creator tax on Pons | 2.5% of every $GEARS buy and sell | the $GEARS trader |
| Pons' own fees | as shown on Pons | the $GEARS trader |
| NVDA 2X pool fee | 0.30% of each swap | the NVDA 2X trader |
| Lighter funding, trading fees and slippage | as charged by Lighter | the vault, so every NVDA 2X holder |
$GEARS
$GEARS is the house token. It trades on Pons. It has no claim on any vault, on any fee, on the gearbox treasury or on NVDA 2X, and its price can fall to zero. The official $GEARS is the one at the address below once the chain confirms it; this site shows no address before that.
First and later
NVDA 2X is the first product. TSLA 2X and META 2X, MSFT, AAPL, AMZN and GOOGL and a short launch are catalog names for later. They are not products: nothing on this site trades them, and the site does not call any of them live. A product is live only when the product registry on Robinhood Chain says it is active and its vault holds a fresh NAV.
Notice and risks
GEARS products are experimental software. They are not deposits and not investment advice. You can lose most or all of what you put in.
Leverage cuts both ways
A 5% fall in NVDA is about a 10% fall in NVDA 2X. Trading back to 2.00x after a fall locks in part of the loss, and back and forth moves cost a trade each time.
Off-chain position
The exposure is a perp position on Lighter, outside Robinhood Chain, in an account the operator controls. If Lighter, the operator or the keeper stops, the NAV goes stale, redemptions wait and leverage drifts.
Liquidation on Lighter
A large enough move before the keeper trades can push the account toward Lighter's margin limits and a forced close.
One operator
The keeper and all three reporter keys are run by the same operator. The NAV is only as honest as that operator.
Owner control
The GEARS owner wallet controls the gearbox treasury and can withdraw from it. It can also freeze the treasury, which stops every keeper and admin action on it until the owner wallet unfreezes it. The contracts have admin roles that can pause products.
Pool price
The pool price can differ from NAV, and the first pool is small. Compare the two before you trade.
$GEARS
$GEARS has no claim on anything above and can fall to zero.
No independent audit
No independent audit of the GEARS contracts has been published.
Contract addresses
| Contract | Address |
|---|---|
| $GEARS coin (CA) | shown here once the chain confirms it |
| Pons launch factory | 0x7eD598BcEf8bd9Edd8C97A195C6d13f40801EC7e0x7eD5…EC7e |
| Gearbox treasury | shown here once deployed |
| NVDA 2X vault and token | shown here once deployed |
| Product registry | shown here once deployed |
| USDG | 0x5fc5360D0400a0Fd4f2af552ADD042D716F1d1680x5fc5…d168 |
NVDA 2X state on chain: not deployed.
Data on this site
| Figure | Source | Refresh |
|---|---|---|
| $GEARS address | the configured address, shown only if its contract on Robinhood Chain is the $GEARS coin | every 15 s |
| NVDA 2X live state | the product registry (active) and the vault (fresh NAV) | every 15 s |
| NAV, vault value, Lighter position | the vault and its strategy contract on Robinhood Chain | every 15 s |
| Pool price | the NVDA 2X pool's price on Robinhood Chain | every 15 s |
| The week on the home page | hourly closes of the Lighter perp for each stock, drawn at 2x | every 10 min |
A server reads the chain once and every visitor shares that read. When a read fails the site shows n/a instead of a guess.