By Petrache Ionut Jul 15, 2022
The most robust, user-friendly, and liquidity efficient decentralized leveraged trading platform, gTrade, is being developed by Gains Network.
With their specially created synthetic architecture, gTrade is 100x+ more capital efficient than any other platform now in use, offers incredibly cheap trading fees, a variety of leverages (up to 150x on cryptocurrencies and equities, up to 1000x on FX), and can support any asset provided it has the appropriate API.
The ERC20 utility token (GNS) and ERC721 utility token (NFTs) are the center of the entire protocol. GNS and the Gains NFTs are made to be used actively within the platform. The NFTs are required to be held to gain access to the product’s backend ecosystem. Without a Gains NFT, you cannot participate in liquidating traders, filling limit orders and earning additional rewards. GNS is rewarded to bots who perform the liquidations.
GNS utility will come from single sided staking (slated to ship in August 2022). Rewards for staking the token will be in the stablecoin DAI which are generated organically from the platform fees.
However, GNS will also be integrated into any other DeFi products Gains Network builds. A Metaverse Casino will most likely be the next project as stated on the roadmap. Casinos have an enormous market so there is lots of potential to innovate on the experience.
gTrade - How does it work?
Regardless of the trading pair, trades are opened with DAI as collateralThis DAI is deposited into the Trading Vault. Synthetic leverage is supported by this novel Trading Vault that acts as the counterparty to any trade and as an all-in-one liquidity pool for any listed asset. When a trade is closed, DAI is taken out of the vault to pay the traders back +/- PNL.
gTrade uses a unique real-time Chainlink node operators network to obtain the median price for each trading order. All derivatives platforms produce their own pricing through order books or similar algorithms, which frequently results in values that do not match the actual spot price of the asset.
Whether done with manipulative intentions or simply due to a lack of liquidity, any abnormal price action occurring on a single exchange is essentially filtered out by the Decentralized Oracle Network, giving traders peace of mind knowing that they won't be liquidated due to, say, a scam wick. You should be aware that these are your trades. Unless you have authorized the smart contract to allow this by establishing a stop loss or take profit, or if you are in a position that requires liquidation, gTrade cannot initiate, close, or alter any component of your open transactions.
When a contract is upgraded, governance has the option to suspend the opening of new trades; however, this does not close any open positions held by traders, who all still have the option to close their trades whenever they would like to.
gTrade allows trading on the price of more than 40 cryptocurrency pairs with leverage ranging from 4x to 150x, 10 forex pairs at leverage ranges of 30x to 1000x and 20+ stocks at leverage ranges of 3x to 150x with more pairs added all the time.
You may trade whenever you want because cryptocurrency markets are open around-the-clock. However, there is typically less activity and less volatility on cryptocurrencies while the stock market is closed. There are no gaps because cryptocurrency markets are always open.
It should be noted that regardless of the execution time, gTrade can guarantee your stop loss for cryptos. It will always be activated at the exact price you specify.
The trading engine is completely decentralized, and users retain ownership of the money.
Innovation through NFTs
There are five various types of NFTs used by Gains Network that serve as the ecosystem's master keys. 1500 NFTs in total have been minted and are divided into 5 categories (Bronze - 500, Silver - 400, Gold - 300, Platinum - 200 and Diamond - 100)
Liquidity providers who supplied at least 1% of the total liquidity made claims for the NFTs. They were given NFT credits (not ERC20 tokens), which made it possible to mint these NFTs.
These NFTs offer exclusive benefits such as:
Reduced spread when trading: -15% (Bronze), -20% (Silver), -25% (Gold), -30% (Platinum), and -35% (Diamond). You simply need to hold the NFT in your trading wallet.
Run a bot to get rewards from executing liquidations and limit orders. All NFTs can execute equally in this regard. Instructions to set-up and run the bot are HERE.
Boost your LP rewards by staking up to 3 NFTs on the GNS/DAI Pool Contract (GNSPoolV5) The boosts are 2% (Bronze), 3% (Silver), 5% (Gold), 8% (Platinum), and 13% (Diamond).
Other use cases will be revealed as the ecosystem expands and based on community feedback.
The DAI Trading Vault
The Trading Vault is a Smart Contract where the DAI for paying out traders comes from and where the DAI from open trades goes. Anyone can stake DAI in the vault and receive rewards in DAI derived from fees correlated to the volume of the platform.
The maximum rate at which the staked DAI may be withdrawn per 24-hour period is 25% of your maximum stake. For example, if you have 1000 DAI in the vault, you can withdraw 250 DAI every day, and after 4 days, you will have taken out the entire amount.
The goal of the vault is to at least maintain a 30% over-collaterization, which is attained naturally over time through traders (the collateral from a losing trade fills the vault) . The vault will use the excess DAI to market buy GNS and burn it if it is more than 30% over-collateralized as a result of people opening trades. This can result in deflationary periods.
The quantity of DAI staked in the vault determines the size of the maximum collateral position. The team updates it depending on its TVL.
The GNS/DAI Staking Pool and NFTs Utility Boost
This pool can only be accessed through the Polygon Network. You will get GNS and dQUICK rewards for staking your GNS/DAI LP tokens and earn the Quickswap trading fees.
The rewards from this pool are generated from the fees of the trading platform. The yield depends on the trading volume and it doesn’t mint additional tokens. You can acquire the LP tokens HERE.
These rewards are currently boosted by owning a Gains Network NFT and the boosts are:
Bronze NFT - 2%, Silver NFT - 3%, Gold NFT - 5%, Platinum NFT - 8% and Diamond NFT - 13%.
Without an NFT, the APR, or APY if compounding, you see on the staking page represents your average APR for the rewards you received during the prior week.
With an NFT, you receive a greater portion of benefits for the same investment. Up to three NFTs may be staked for increased boost. You would receive 24 percent extra reward to the shown APR, for instance, if you had 1 Diamond NFT, 1 Platinum NFT, and 1 Silver NFT. Your total increase would be 13+8+3=24 percent.
Gains Network takes security very seriously and is fully audited by CertiK as you can see right HERE.
This project has been a staple platform for many users and with constant innovation and a hard working team their goal is to provide the best and fairest leveraged trading experience on a fully decentralized platform while awarding liquidity providers and stakers almost all of the generated revenue.
Website - https://gainsnetwork.io/
Telegram - https://t.me/GainsNetwork
Twitter - https://twitter.com/GainsNetwork_io
Discord - https://discord.gg/Zj6Uub2wZ7
Medium - https://medium.com/gains-network
Documents - https://gains-network.gitbook.io/