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?- Your keys, your coins! You do not have to deposit your funds on an exchange or worry about withdrawing limits. You trade straight from your own wallet through Metamask or Walletconnect
- No KYC! The project is decentralized and all trades are on the blockchain. Pretty much the Uniswap of leverage trading.
- No scamwicks / liquidation hunting. The price feeds are pulled from no less than 7! exchanges for which an aggregate is pulled, this pretty much filters out big movements that only occur on one or two exchanges.
- You leverage trade spot prices and not some derivative instrument that tries to emulate the asset' price.
- No borrowing fees! You dont borrow anything so there are no borrowing fees. This may make this platform the first of its kind that is not haram.
- Very low trading fees: only 0.06% on volume for crypto and 0.006% for forex
- Fixed (and narrow) spreads! Spreads are synthetic like everything else and set to a small amount to stop wash trading. 0.05% for large caps, 0.025% for Bitcoin, 0.01% for forex.
- No price impact! You can use 100x leverage with 50k and the price wont budge. There are no orderbooks for you to eat through.
- Not only crypto! You can trade anything you can get a price feed from. You can already trade forex and stocks and commodities will be added soon. Probably it will soon be the only place to trade the true oil price.
- Trade exotic pairings. If you get a price feed for TSLA and you get a price feed for DOGE, you can combine them into a TSLA/DOGE trading pair! Potential buzz could break the internet.
- Cheap on chain fees: Polygon fees for gains.trade transactions are below $1.
- Everything is fully decentralized on chain. Even when the UI gets taken down you can still use a) another UI or b) close it by interacting with the smart contract directly.
- Fully isolated margin, you can only lose the collateral that you put up.
- Narrow liquidation margin. You only get liquidated if your position is over 90% in the red.
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/Linkshttps://gains.tradehttps://gainsnetwork.io/https://gainsnetwork-io.medium.com/https://dune.xyz/unionepro/Everthing-Gains-Networkhttps://twitter.com/GainsNetwork_iohttps://t.me/GainsNetworkhttps://discord.com/invite/Zj6Uub2wZ7https://www.reddit.com/r/GainsNetwork/https://www.coingecko.com/en/coins/gains-network
