Title: GNS - Gains Network: Revolutionary on-chain trading platform Post by: fatjohn on January 27, 2022, 08:16:23 PM GNS is the utility token behind gTrade, the decentralized leverage platform of the Gains Network.
It's already a working product having been used by almost 1800 users who placed well over 100,000 trades worth over $3.5 Billion in value since October. It generates significant revenue that in part goes toward burning tokens and deflation is over 20% annualized right now. I believe it's the best platform for traders, blowing away both the on-chain as well as off-chain competition due to a variaty of reasons which I'll list first. Afterwards, I'll also briefly explain the inner workings and touch upon the tokenomics as well. What are the advantages for traders?
How does it work? Trading assets on gTrade is synthetic as in there is no liquidity on the gTrade platform however you open a long on BTC say $1000 at 5x leverage. Then the smart contract just queries the price through a custom on demand chainlink oracle network and sends your collateral (in DAI) to the vault. Once you close your trade, for example 10% higher, the smart contracts calculates that it owes you $1500 and give you 1500 DAI back (minus fees). You never take ownership of the asset you are trading and you never borrow funds to create the leverage that you want. If the total sum of traders lose more than they gain the vault becomes fuller and fuller and at a certain point uses the excess DAI to buyback GNS and burn it. If the total sum of traders gain more than they lose the vault diminishes and at a certain point GNS gets minted to sell for DAI and replenish the vault. The GNS token holder is essentially the counterparty of every trade as his token will get dilluted if traders win and will deflate when traders lose. You are essentially taking a bet on a price feed and the system is long term sustainable as long as the traders as a group do not have an edge. If such a situation would occur some parameters would need to be tweaked to get rid of this edge. However, individual traders can off course be tremendously profitable if they know what they are doing. What are the tokenomics like? The token is actually needed. The GNS token is de facto the counterparty to the traders and by virtue of being tradable on the open market it sources the DAI liquidity and the smart contract can use minted GNS to pay out traders their winnings. However this is hardly ever done since a slice of the platform fees are used to incentivize a DAI staking vault from which the traders get actually paid out from. Only when this vault drops below the total amount staked do tokens get minted and sold in order to slowly refill it so that all the stakes of the stakers are fully collateralized again. When the vault gets filled (through fees, trader losses and outstanding open trade collateral) to beyond 110% of all stakes, DAI gets slowly taken from the vault to buy back GNS tokens and burn them. This works so well that the current deflation rate (extrapolating the past 30 days) is about 20%, which to me screams undervaluation of the token price but I'll let you be the judge. On top of this deflationary mechanism, approximately half of the fees get used to reward GNS/DAI LP'ers for LP'ing their tokens. The rest of the fees see 15% go to the dev, 15% to the governance fund (for marketings and acquiring protocol owned liquidity), 15% to a referral program and 5% to the DAI stakers. The marketcap is just above 100M and the platform has already had over 3.5 Billion in volume since launching v5 in October, see the stats page for more: https://gains.trade/stats/ Links https://gains.trade https://gainsnetwork.io/ https://gainsnetwork-io.medium.com/ https://dune.xyz/unionepro/Everthing-Gains-Network https://twitter.com/GainsNetwork_io https://t.me/GainsNetwork https://discord.com/invite/Zj6Uub2wZ7 https://www.reddit.com/r/GainsNetwork/ https://www.coingecko.com/en/coins/gains-network Title: Re: GNS - Gains Network: Revolutionary on-chain trading platform Post by: fatjohn on January 29, 2022, 02:07:05 PM bump, I really put an effort into this and this isnt some shibadogelonmooninu token.
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