As more people than ever flock to the stock exchange and begin their investing journeys, one particular form of trading is becoming even more popular – leverage trading. As of 2020, as many as 43% of traders were using leverage to radically boost their exposure to the market in an attempt to boost their gains.
However, while leverage trading is common practice within forex trading, the additional options are fairly limited when it comes to other forms of leverage trading. As of early 2021, Gains Network, a decentralized finance platform, has radically boosted the extent to which leverage trading can be undertaken.
What started a little over a year ago has now blown up into a finance phenomenon, with Gains Network pulling investors away from traditional brokerages in search of a decentralized option.
Could this new platform represent a shift in investor habits for the foreseeable future?
What Exactly Is Gains Network?
Aiming to provide the most comprehensive, global decentralized finance ecosystem, Gains network offers an optimized suite of advanced tools and DeFi products.
The team behind Gains Network began by launching gTrade, a leverage trading platform on the Polygon network. With a unique infrastructure and a set of leverage tools, gTrade provides a service that is between 100-1000x as efficient while also offering low trading fees.
Additionally, Gains Network’s first product offers a range of leverage, with up to 1000x on Forex trades and 150x on cryptocurrencies. With a diverse set of assets, covering stocks, commodities, Forex, and crypto, Gains Network is making waves in the DeFi market.
The two central utility tokens of Gains Network are ERC20 (GNS) and ERC721, the latter of which is used for NFT trading on the platform. With ingenious methods of integrating GNS into the system, Gains Network has tethered the platform’s own success to the coin, its value increasing with the additional user base that floods in day by day.
History of Gains Network
Launched in January 2021, Gains Network has seen incredible growth in only a short amount of time, currently averaging $15M average daily volume on the platform, with a $110m all-time high. Following this success, the GNS coin has similarly risen in value, currently reaching a $15M market cap.
Even in a short amount of time, the Gains Network team has made vast improvements to the project, developing their website and expanding their DeFi ecosystem. With over eight months of continuous uptime on Polygon, the application goes beyond the expected and delivers an unparalleled DeFi experience.
What Makes Gains Network unique?
As a decentralized leverage trading platform, Gains Network allows users to predict if the price of an asset will rise or fall, correct predictions leading to profits. These profits are further accelerated as Gains Network offers high leverage without funding fees – as leverage isn’t directly borrowed, traders’ profits are their own. Howver, as with any leveraged trading, losses are also amplified.
The additional liquidity efficiency of this platform is said to be around 100x better than competitors, providing a more comprehensive experience when compared with similar businesses. On top of this, Gains Network offers 47 pairs, all of which share the same liquidity in GNS/DAI.
Providing the largest range of pairs currently on the market, with the second nearest competitor, Dydx, only offering 25, Gains Market grants flexibility and user choice to the decentralized process. As the platform uses Chainlink price feeds, live prices are always used, ensuring that users always keep custody of their funds.
Additionally, instead of trading with perpetuals, gTrade instead takes the medium value from different exchanges, providing a more accurate spot price of the asset. This additional accuracy liberates users from a constrained, brokered trading experience.
Alongside offering the highest leverage of all decentralized trading platforms, Gains Network’s unique set of features makes this an exciting new company to watch.
Currently, the main features to take note of are:
gTrade (Leveraged Trading)
Let’s break these down further.
As the central platform’s utility token, GNS is used or burnt when a trade is open or closed. The process of minting GNS is used to pay back the trader after these trades have gone through. GNS was migrated at a 1:1000 split from GFARM2, a 100% community distributed token created through farming.
The token’s main point of attraction is its deep integration into the product, making them vital to the success of the platform. Each use case of the product directly ties the token in, creating a stable model of tokenomics. As the user base of Gains Network increases, the inherent value of the currency will also increase. This symbiotic relationship between functions and uses allows the token to solidify itself within the ecosystem, providing stability.
Another appearance of the GNS token for users is the ability to earn passive rewards by staking GNS/DAI Quickswap LP tokens on Pools. By doing this, you’ll earn a share of the trading fees, acting as the leveraging agent within these user trades.
The total max supply is 100,000,000 GNS, with additional tokens only created to pay out winnings to traders.
Within the GNS ecosystem, there are 1,500 NFTs, each of which is then categorized into a different tier based on the rewards they entail. There are five tiers:
Bronze – With a total of 500 NFTs
Silver – With a total of 400 NFTs
Gold – With a total of 300 NFTs
Platinum – With a total of 200 NFTs
Diamond – With a total of 100 NFTs
Each of these tiers comes with its own selection of benefits, incentivizing users to supply total liquidity in order to mint these NFTs. As assumed with this decreasing scale, diamond NFTs come with the largest amount of benefits and thus require the most amount of NFT credits.
Users can expect the following benefits from the NFTs, with varying returns based on the tier:
Spread Reduction When Trading – Spread is reduced by between 15% (bronze) and 35% (diamond) when holding an NFT in their trading wallet.
LP Reward Boost – If a user takes an NFT on the v5 pool, they’ll receive boosted rewards varying between 3%-13% for bronze-diamond, respectively.
NFT Bot – Running this bot will create rewards, execute liquidations, and
allow for the surpassing of limit orders.
The connection of ecosystem benefits and NFT possession creates a unique feature of the platform, one that inherently increases the digital value of the NFTs, while incentivizing their trading.
Leveraged Trading, gTrade
The central driving force of leveraged trading on the platform is through GNS. In order to open a trade on the platform, a user must supply GNS. Due to this connection, Gains Network offers up to 1000x leverage, without actually needing the user to borrow leveraged funds.
There are three trade routes, each securing a balanced tokenomics model:
Profit – If the user decides to close the trade while upon their initial investment, their original position is returned to them, the additional profits are then also minted to the user.
Loss – If closed in the red, the original position is returned to the user, minus the losses, which are minted back.
Liquidation – Once entering the zone of liquidation, an NFT owner can liquidate, keeping an initial position for themselves of up to 5%.
How does gTrade ensure a fair price?
Instead of simply using derivative prices, like many other trading platforms, gTrade uses a custom-built Chainlink node. This connection will check the median price from up to seven data sources, pulling a more stable price and automatically filtering out any price manipulation.
Through this process, any false price action or scam wicks are removed, ensuring that users of Gains Network always get prices that correspond directly to the live cost of the asset. This is a radically different way of processing trades, but one that aims to eradicate market manipulation.
Final Thoughts on Gains Network
Providing a decentralized leverage trading platform, Gains Network uses an advanced range of DeFi products to deliver a new form of trading. Through their integration of GNS into gTrade, they provide the option to leverage in ways that would not be possible with traditional brokerage platforms.
By using a Chainlink node and taking the median price from several data sources, Gains Network also prevents manipulated scam wicks or false prices from impeding its daily trading. If you’re looking for a new leverage platform that beats out traditional brokerages, then Gains Network is a great choice for you.
This review is an avertorial. Please do your own research.