Gains Network
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Gains Network

gTrade May 2022 Recap

Stocks launch, more robust design, safety module research, new mid-term roadmap, docs update, May stats and more!

This past May was one of the most eventful yet challenging times for gTrade.

Stocks Launch & Partnerships

On May 3, we launched trading on the price of stocks, for the first time ever, as a beta test. The first tradable synthetic stocks were $AAPL, $FB and $GOOGL. About a week later we followed up with the full launch for stocks bringing the total number of tradable stocks to 23.

This launch was coordinated with Market Across and Cre8r DAO. New partnerships are being explored also with consultancy firms and influencers to expand our reach.

You can get the full details on our stock launch here:

Medium-term Roadmap

Séb, the Founder of Gains Network, published a roadmap for the next few months in light of the Luna Terra crash which resulted in a re-evaluation of risk-management and protocol mechanics. Please note that a fully detailed medium-term roadmap is coming in the following weeks, as we have been working hard on setting the new highest priorities based on the community’s feedback and the recent events. On top of risk management, GNS single sided staking (SSS) is a top priority along with migrating to a Uniswap v3 vault in conjunction.

The idea is that you will be able to choose to stake a GNS pair with one of our partners for automated active liquidity management in their vaults. The other option will be to create your own vault in Uniswap v3 and manually manage it. The rewards will most likely come from just swap fees. The platform generated rewards would be divided between the DAI vault and GNS single staking pool. However, this has not been finalized at the time of writing.

We will also continue to look for solutions to strengthen the DAI vault during drawdown events. There are designs like Aave’s safety module which seem to be formidable and applicable to our case.

Lastly, we have been collecting trader feedback to improve the user experience and user interface of gTrade. The goal is to make it as easy as possible for both DeFi natives and TradFi users to trade on the platform (and on-ramp/off-ramp polygon DAI). We realize the importance of making the platform as intuitive as possible for mass adoption. An automated feedback collection form will be coming soon.

The full update from Seb can be found here:

Other Updates:

50% of the APR from the GNS/DAI LP rewards was redirected to the DAI vault to compensate for the undercollateralization risk during the vault drawdown. The duration of this reward increase is currently indefinite.

The minimum leverage allowed on all cryptos listed was temporarily raised to 10x as an impromptu, temporary measure to minimize platform risk until the next trading update. The next update will feature a more robust risk management system which may allow us to offer leverage as low as 2x!

The minting mechanism of the DAI vault had to be paused in order to protect both the supply and price of $GNS. We realize now that creating a circular system that relies mostly on the native protocol token to refill the trading vault is actually not ideal. The vault architecture originally centered around the minting mechanism is now being updated.

In the former design of the protocol, GNS would be considered endogenous collateral — meaning that GNS was directly tied to vault stability in a way that could have resulted in a death spiral of the token and vault (if the trading vault is thought of as a stablecoin pegged to 100%). To reiterate, this design has been removed from the protocol and will never return. You can learn more about this mechanic here — an academic research paper we used to make our decision to change the design.

May Stats

Here is the monthly breakdown of our profits from trading fees and stats:

Docs Revamp

gTrade documentation got a revamp this May to keep up with the new developments such as stocks. There was also a reworking of fees which needed to be clarified. You can find the updated docs here:

Big Wins

There were multiple traders who won big on a few trades worth millions in aggregate. The trades were paid out even though some of them were on delisted pairs. It is important for us to make sure that trades are paid out fairly.

Significant Progress on the Frontend

We now have two frontend devs working on cleaning up and optimizing the code base. This work will be core to the next white-label partnerships, and is also laying out the foundations for the next UX optimizations.

The development team is currently made of two frontend developers, one backend developer, and Séb (full-stack, mainly smart contracts).

Referral Fees Update

The referral fees have been redirected to the gov and dev funds because the referral links were being abused. Some traders were referring themselves instead of referring new users. This was obviously not intended and, therefore, an error in the referral system.

The next referral update will be a massive upgrade with a whole new system designed to align incentives for different categories of users/groups. The new system will be based on a whitelist also. We have also recognized that anonymity is important for these referral links. You can expect more details on the new referral program in the next 1–2 months.

V6.1 Update & Conclusion

gTrade’s next update will bring more robustness to the protocol, allow for greater scaling, the addition of more requested features and a better UX. It’s been a tough month as the core protocol mechanisms had to be redesigned and thought through carefully. However, we have persevered and we believe that the platform will be much better off in the end.

Ultimately, we are thankful for the community and the events which challenged us this past month as both have helped us improve the platform and take us to the next stage of development. Keep an eye out for more updates as we weather the next challenges and continue to build the greatest decentralized trading platform! An article detailing all the new changes in V6.1 will be coming soon.

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Gains Network develops gTrade  —  the decentralized leveraged trading platform on Polygon. There are more products to come.

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