gTrade May 2023 Recap
Protocol Growth, Development Advancements, and the Trading Contest Announced
May was another strong month for gTrade and the community.
Over the past month, a number of development advancements have been made, including the release of v6.3.2 and international support upgrades, as well as the announcement of the King of the Hill trading content and much more!
Let’s dive into the highlights.
Protocol Growth and Profit Distribution
Despite the trading volume and on-chain activity slowing down across the broader market, the gTrade community remained active throughout May.
Trading volume reached $2.40 billion over the past month, and total trading volume has recently surpassed $40 billion!
Regarding TVL, the gDAI Vault has remained steady, currently holding approximately $51.3 million. Despite some fluctuations, the governance fund maintained healthy earnings, totaling $274,497.
Key stats for May:
- Trading Volume: $2.40 billion
- Profit Distribution: $2.13 million
- Total Trades: 48,695
- $gDAI Vault TVL: $51.3 million
- Governance Fund Earnings: $274,497
- GNS Staking Earnings: $575,513
Open Interest Increases
gTrade once again raised OI on Bitcoin and Ethereum to accommodate protocol growth and trading volume.
Arbitrum:
- BTC/USD: $10 million -> $15 million
- ETH/USD: $10 million -> $15 million
Polygon:
- BTC/USD: $3 million -> $4.5 million
- ETH/USD: $3 million -> $4.5 million
gTrade v6.3.2 — Transitioning from Funding Fees to Borrowing Fees
gTrade launched its v6.3.2 upgrade, introducing a shift from funding to borrowing fees.
This shift offers a range of benefits, including a more efficient approach to managing open trades’ profit risk and better scalability of max OI per pair without increasing vault TVL.
Borrowing fees are charged on the dominant side, allowing traders to open larger positions without increasing fee APRs and creating a major edge for the protocol.
Borrowing Fee Benefits:
- Enhanced Efficiency: Borrowing fees are 100% efficient for the protocol since they go directly into the vault as negative PnL.
- Better Over-Collateralization: The borrowing fee structure supports the over-collateralization of the vault and enhances liquidity providers’ capital safety.
- Exposure Regulation: The borrowing fee structure regulates net exposure using a negative incentive, leading traders to avoid / close too expensive positions.
- Reduced Rollover Fees: While the borrowing fee does not replace the existing rollover fee, it will become 3x lower (making lower leverages cheaper).
- Improved Risk Management: By considering individual trading pairs and correlated asset groups, borrowing fees better manage the platform’s overall risk exposure.
- Increased Revenue Generation: Aligns the protocol fee structure to maximize revenue generation with scaling open interests and volume.
- Better Scaling: With stronger price exposure risk management, we can significantly increase max open interests allowed on all pairs without needing more vault TVL.
You can read more about the new borrowing fee structure here.
King of the Hill Trading Contest
The time has come! gTrade’s King of the Hill trading contest kicked off on June 12th on both Arbitrum and Polygon platforms.
King of the Hill differs slightly from traditional contests. Snapshots of the leaderboard are taken at the end of each day, and rewards will be calculated daily, incentivizing consistent trading.
With $100,000 in ARB and DAI prizes up for grabs, traders are gearing up to climb the leaderboard and defend their ranks!
More on King of the Hill here.
International Support
Further solidifying its global footprint, gTrade introduced international support, allowing users to view the platform and trading UI in their preferred language.
Supported languages include English, Spanish, Polish, Chinese, and Portuguese, with more to be added soon.
Discord AMA and Meme Contest
May was marked by a number of community engagement events, such as a Discord AMA where gTrade discussed its expansion to Arbitrum, future updates, and other exciting news.
gTrade also hosted its first-ever meme contest, offering the community a fun and creative outlet to express their passion for trading.
Integrations and Partnerships
Several new protocol partnerships were announced in May. These included collaborations with Delorian Exchange, Arbitrum Exchange, and Fluidity Labs, all aimed at providing enhanced yield-earning opportunities and rewards for the gTrade community.
Delorean Exchange: https://twitter.com/GainsNetwork_io/status/1666891431850684416
Arbitrum Exchange: https://twitter.com/GainsNetwork_io/status/1662976112958504965
Fluidity Labs: https://twitter.com/GainsNetwork_io/status/1660605981297098752
Wrapping Up May
May was yet another month filled with growth and innovation.
New features and upgrades, including v6.3.2 and international support brought even more convenience for traders, and exciting events like the trading and meme contests to continue to grow community engagement.
As discussed in the recent Discord AMA, a number of updates are on gTrade’s horizon, including lookbacks for fully guaranteed trade execution, as well as partials and smart contract trading.
gTrade is also looking into ZK-Rollups as another innovative architecture for the platform’s L2 base. Talks are already underway with Polygon regarding the usage of their zkEVM!
For regular updates, everyone is encouraged to join the gTrade Discord and Twitter communities.
Thanks for tuning in, gTraders — here’s to another action-packed month ahead!
