The Best Trading Platform in the Crypto Space | Gains Network
A trading platform better than DYDX and other CEXs.
I’ll say this here, Polygon has a lot of unknown gems, and when I say unknown, I’m talking about gems ripe for massive adoption. Polygon aims to scale Ethereum and onboard institutions into its DeFi tech with seamless, cheap and fast transactions.
Lying deep inside Polygon is this fascinating gem project — Gains Network. You might look at the title of the article and go: “DYDX, Binance, Coinbase! I’ve never heard of GNS. So how??”
Well, keep calm, you’ll get to know it all here. Fasten your seat belts ladies and gents, because this ride is gonna be fast and exciting.
What is Gains Network?
Gains Network, formerly known as Gains.Farm is a suite of cutting edge tech-products built on Polygon leveraging the ability to mint/burn Gains Network token — $GNS. It has two products — gTrade and a forthcoming betting/casino platform.
gTrade is a decentralized leverage trading platform that offers up to 150x leverage on 40+ cryptocurrencies and up to 1000x leverage on 10 forex pairs. gTrade is the core innovation of Gains Network. It has a unique mechanism that’ll be discussed later.
Brief History
Gains.Farm launched in January 2021 on the Ethereum mainnet, the token was GFarm2 with a supply of 38,500 and a max supply of 100,000 which was freely farmed by the community by staking ETH or providing GFarm2/Eth liquidity. Gains.Farm later moved on to Polygon, where DeFi is fast and cheap.
However, on the 21st of October 2021, the community reached an agreement to launch a token migration from GFarm2 to GNS. This migration would cause a token spilt of 1:1000 i.e 1 GFarm2 token will be 1000 GNS with the same dollar value. This token migration was done to easily track tokens burnt and a better representation of the market cap as people tend to see a high token price as a high market cap.
Tokenomics
The Gains Network token, GNS, was a fair launch with 0 pre-mine and was entirely distributed to the community on Ethereum before bridging to Polygon.
Gains Network has a total supply of 38,500,000 GNS and a maximum supply of 100,000,000 GNS. GNS is a deflationary token with 24.34% of its supply burnt, and currently has a total supply of 29,130,622.
GNS is a deflationary token based on real-world use. What makes its deflationary mechanism different from other projects is that other projects say they burn their tokens but it’s after they’ve minted 10x more. Hence, let’s get to know how deflationary GNS is and how it works.
The Deflationary Status of GNS
It’s a known fact that over time traders lose more than they win, even with the fairest leveraged trading platform, Gains Network, a fact is a fact. This loss ratio is amplified by the leverage and volatility of crypto assets in GNS. Gains Network guarantees higher leverage than other platforms and with the volatility of tradable assets, the loss ratio isn’t a myth. This ensures long term deflation of GNS.
The chart above, extracted from the blockchain, shows the burn generated by Gains Network in over 2 months as of October of last year. You can see the trend from the chart as then a token supply of 500 gFarm2 was burnt per month.
“But how does the burning work?”
First, what’s burning? Burning is the permanent removal of a token from the token’s circulating supply.
Traders trade using the stablecoin, DAI. This stablecoin gets converted to GNS and is burned. As time goes on, more people lose trading than they win, which places deflationary pressure on the $GNS.
It’s a win-win situation for both traders and HODLers as traders are happy because they trade in the fairest trading platform in the space and HODLers HODL a deflationary asset which gets scarce day by day.
Use Cases of $GNS
1) Staking/LP to own a share of the protocol
To proceed with being a Liquidity Provider on Gains Network, buy $GNS with Matic here https://quickswap.exchange/#/swap , then add liquidity on QuickSwap pools by dual staking GNS/DAI e.g pairing 100$ worth of GNS with 100$ worth of DAI; it has to be the same value in $, then stake that liquidity here https://gainsnetwork.io/pools/. Wasn’t so hard was it?
After staking, you earn rewards from trading fees in the form of $GNS and $dQuick. Yes, you earn bolt GNS and Quick token. At the time of writing (29th March, 2022), the current APY is 105%.
There’s also a DAI vault where you can stake DAI (a $ stable coin) with a current APY of 18%. The Gains Network platform pays 90% of LP rewards to the GNS/DAI liquidity pool and 10% to the DAI pool.
2) Using the DAI vault liquidity to mint/burn and enable GNS to exist
The token, GNS and the liquidity Vault work hand in hand — when a trader opens a trade it goes to the DAI vault and when a trade is closed, profits are paid out in DAI to the trader.
When a trader opens a trade using DAI ($USD stable coin), it goes into the DAI vault. And when a trade is closed, any profits or remaining balance is paid out in DAI to the trader. If the payment of profits caused by winning trades exceeds the amount of collateral in the DAI vault long enough to cause the DAI vault balance to drop below its TVL, ie the amount of DAI staked in the vault by Liquidity Providers, the protocol automatically mints more GNS and sells it for DAI so as to refill the Vault.
In contrast, if enough people lose trades and the incoming collateral causes the DAI vault balance to exceed the TVL by more than 10%, the protocol will use the excess DAI to buy GNS and burn it.
This mechanism is the backbone of the protocol tokenomics.
Furthermore, note, opening a trade on gTrade does this; DAI > buy GNS > burn GNS.
While closing a trade, it does this: send DAI from vault to trader > refill vault slowly by minting GNS and converting it to DAI.
The Technology
gTrade
Unlike other trading platforms, gTrade does not require KYC (Know Your Customer). You can trade anonymously.
gTrade features a full unique synthetic architecture with up to 1000x on forex trades that doesn’t borrow leveraged funds — making them better than their competitors. How does this work?
DAI is used for trades on gTrade, which is deposited in the DAI vault as explained above. The trader pays the collateral with DAI and the leverage is synthetic and backed by GNS. This allows gTrade to offer up to 1000x leverage on forex and 150x leverage on crypto pairs. When the trader closes the trade, DAI from the vault is used to pay the trader back +/- PNL (profit and loss).
Also, multiple currency pairs or crypto assets can be listed on gTrade thanks to its GNS/DAI liquidity pool and the DAI vault — this gives Gains Network a huge advantage over its competitors who must build liquidity for each currency or crypto pair. With the help of the huge liquidity in the pool and vault, every trading pair only requires GNS/DAI liquidity, making it easy for new pairs to be added. This makes every pair on gTrade benefit from bigger position sizes and less slippage (this occurs when a trader receives a different trade execution price than intended).
As discussed in this article, the mint/burn mechanism of GNS is what’s used to pay traders, making it possible for gTrade to leverage trades virtually and PNL is simulated with its smart contracts.
Note; if gTrade used the traditional buying/selling order book like its competitors, the mechanism above wouldn’t have been possible.
With the aid of the Chainlink DON which aggregates pricing data from 8 exchanges, gTrade outshines its competitors with these features:
1) A Guaranteed Stop Loss
No competitor offers this! There’s something called Dynamic Spreads — this is when your broker hits your stop loss without the price of an asset moving.
‘How does this happen?’
This occurs when volatility is high in the market, centralized brokers/exchanges increase the spread on their asset pairs. Hence, this makes the difference between ask and bid high, making it very easy for your stop loss to be hit without the price even moving.
Well; there’s good-news, in gTrade, just focus on your trading strategy because this stop loss issue doesn’t exist here.
2) No Scam-Wicks
If you’re an active crypto or forex trader, this is a big issue in our top exchanges, because they generate their own price, making them subject to price manipulation.
Anyway, gTrade has a unique pricing mechanism which protects traders from scam-wicks because all asset pairs are priced using the median spot prices of 8 exchanges thanks to the Chainlink Don.
As seen above during the market crash of last year, using Link/USD charts across different exchanges, gTrade tracked the median price across 8 exchanges with 100% uptime. Traders in gTrade never experienced these wicks. As you can see in the image above, top centralized exchanges experienced this, even decentralized exchanges like DYDX.
3) No funding fee
gTrade is the only decentralized exchange without any funding fee. Due to the median price mechanism thanks to the Chainlink DON and GNS burn/mint mechanism, trades on gTrade are entirely simulated and don’t have any price impact on asset pairs.
This also makes the leverage simulated by taking the % difference between the traders’ open price and the current price x leverage; eg, A trader longs ETH at 2k$ and it goes up to 12k$ (+20%) at 10x leverage would be 200% PnL. If the trader closes the trade, gTrade would send you the corresponding amount of DAI from the DAI vault. And since the leverage is simulated, the trader can have any leverage without borrowing any funds because it’s fully virtual.
Since traders don’t borrow any funds when leveraging, there’s no need for a funding fee.
4) Broad Range of Assets
Yes, this is possible in gTrade thanks to its unique tech. They can simply list any cross-pair between two of their listed pairs by dividing one by the other. For example; the EUR/CHF forex pair — EUR/CHF = (EUR/USD) divided by (CHF/USD). https://gains.trade/decentralized-trading
This makes it easy for tons of asset pairs to be created. No exchange decentralized or centralized can do this!
gTrade is the only decentralized exchange to list forex pairs.
Also, unlike other exchanges (both centralized and decentralized) who need liquidity providers for each specific pair they list, gTrade is different because it’s the only capital efficient leverage trading platform in the space. Why so? All trades in gTrade use the GNS token by going through the GNS/DAI liquidity pool on QuickSwap. This makes them able to list any asset pair without needing liquidity for specific pairs.
5) High Capital Efficiency
As said above, gTrade is the most capital efficient exchange in the space thanks to its GNS/DAI liquidity pool.
Traders will also enjoy these features:
6. No KYC
7. Trade directly from your wallet (most preferably MetaMask) without any deposit or withdrawal fee.
8. gTrade has the highest leverage available in the space. (150x for cryptos and 1000x for forex)
9. gTrade only liquidates positions that are greater than 90% in loss, unlike other exchanges that liquidate at 50–60%.
gTrade is the traders’ destination for easy and smooth trade with no worries whatsoever.
Chainlink DON
Chainlink Decentralized Oracle Network provides high quality data sources and secure off-chain computations to increase the abilities of smart contracts in a blockchain network. Gains Network built this architecture to provide real time aggregated prices for their trading platform.
Most decentralized exchanges use the Chainlink price feed to generate their own prices as part of their derivatives and futures contracts. But this tech isn’t good enough for gTrades set up, as they aim to get real-time to the second price whilst Chainlink price feed offered up to a minute/hour real-time/prices depending on market volatility.
But rather than a price feed updated every second which would waste a lot of gas, they created their own on-demand decentralized oracle network (DON). Also, note that they do not generate their own price, so they have to get it from somewhere else, which is the Chainlink Price feed.
‘How does the whole system work?’
It follows these steps:
An order gets executed in the trading platform -> the trading contract requests the current price from the aggregator contract —> the aggregator contract then fetches the current price from 8 Chainlink nodes —> each of the 8 nodes takes the median price from 7 exchange APIs and sends the result to the aggregator contract — > the aggregator contract then takes the median a second time to make sure there isn’t any outliers, making each step decentralized and no single point of failure — > it then sends the median to the trading contract to execute the order.
Note that, incase there’s a 1.5% difference from the Chainlink price feed, it rejects the node answer and waits for the next answer.
Unlike other decentralized exchanges like GMX which uses the price directly from the chainlink price feeds, which can cause delays. This results in a trader not being able to close their trade in profit before their trading pair has moved 1% in their trade direction.
Whereas, in gTrade, they can open and close their trades instantly.
NFTs
These NFTs are like cheat codes which unlock special benefits in the Gains Network ecosystem. There are 5 different types of NFTs, namely: Bronze, Silver, Gold, Platinum and Diamond.
They offer benefits like:
1) You can run a bot and get rewards from executing liquidations and limit orders. You can set up a bot here
2) Helps to reduce spread while trading. The spread is reduced by 15% (Bronze), 20% (Silver), 25% (Gold), 30% (Platinum) and 35% (Diamond).
3) For DeFi farmers, you’ll be able to boost your LP rewards for staking up to 3 NFTs on the V5 pool. The boosts are as follows: 2% (Bronze), 3% (Silver), 5% (Gold), 8% (Platinum), and 13% (Diamond).
Note, for all these to take place you need to HODL the NFT in your trading wallet.
NFT supply
There are 1500 NFTs in supply, which are distributed as follows:
1.) 500 Bronze Keys
2.) 400 Silver Keys
3.) 300 Golden Keys
4.) 200 Platinum Keys
5.) 100 Diamond Keys
Liquidity Providers who supplied at least 1% of the total liquidity had the opportunity to claim these NFTs. They were rewarded with NFT credits and not ERC-20 tokens, which allowed the minting of the NFTs.
Diamond keys require more credits and Bronze the least.
You can access these NFTs via the following hyperlinks:
With the anticipation of the launch of the Gains Network casino platform, it only gets better from here; with gTrade up and running and bringing in massive TVL and fewer users with an unmatched tech compared to its competitors with more users and an average tech, Gains Network has more room to grow.
If you enjoyed this write-up and would like to reach out to me. This is my twitter handle —twitter.com/0xSalazar
Please remember to do your research. None of this is financial advice.
