Gains Network Review: Top Attractive DeFi Project On Arbitrum

March 23, 2023 - Around 11 mins mins to read

Leveraged Trading has always been a sophisticated piece of the DeFi needed to complete an ecosystem. Gains Network is a project in Polygon and Arbitrum’s derivatives area that created a stir at the end of last year, is seen to have a novel operating strategy, and has attracted a large number of users. Let’s learn details about this project with Coincu through this Gains Network Review article.

Gains Network, a DeFi trading platform, has outperformed the overall crypto market environment, with income continually increasing. Moreover, the daily trading volume of the native token GNS has at times exceeded that of GMX, the token of the leading trading platform on Arbitrum at the time.

Gains Network Review: Top Attractive DeFi Project On Arbitrum

What Is Gains Network?

Gains Network is a decentralized derivatives trading platform established initially on the Polygon network and rapidly moving to other decentralized blockchain networks like Arbitrum. Thanks to that, in recent times, Gains Network has also attracted a large number of users.

Gain Network’s gTrade exchange allows coin/token derivatives traders to trade up to 150x leverage and 1000x on forex trades.

Gains Network leveraged trading is driven by aggregator assets and a decentralized lending protocol, and its leverage mechanism helps users save on loan costs paid on other leveraged trading platforms.
Gains Network’s financial system is supported by the GNS token, which is a native token. Tokens are used for administration and DAO voting for Gains Network activities.
Gains Network’s mission is to create a solution that will “be the most acceptable decentralized leveraged trading platform.” Therefore, the project develops gTrade – an efficient, powerful and user-friendly decentralized leveraged exchange.

More specifically, users can increase their leverage when trading up to:

150x when trading in crypto;
1000x when trading in forex;
100x when dealing with securities;
35x when trading commodities.

Gains Network released gTrade on the Polygon blockchain on May 2, 2022. Since then, the exchange has processed over 832,606 trades from over 12,565 distinct traders, generating over $23,527,882 in trading activity.

In comparison to other projects in the same field as GMX, GNS supports a large number of trading pairs. Furthermore, the combination of traditional financial markets and cryptocurrency aids in customer diversification.

The ability of gTrade to update trading pair prices in real time multiple times per second is one of its advantages. Instead of using the standard Chainlink Oracle, which only updates data every few minutes, Gains Network collaborated with Chainlink to deploy DON (Decentralized oracle network). When a trader places an order, Gains Network sends a request to 8 nodes, which gather prices from the APIs of 9 different exchanges and show the median price on the platform, reducing the true difference and allowing traders to benefit more.

The Gains Network team has said they want to spread this product to other blockchain networks. Most recently, Arbitrum was chosen as the second home of this project. Arbitrum is also the top Layer 2 of Ethereum and has announced its first airdrop after being long-awaited by the public.

What makes Gains Network unique?

Gains Network outperforms other crypto derivatives platforms in terms of decentralization, leverage, and costs.

To assist the ecosystem in thriving, gTrade is at the heart of the overall project ecosystem and features an efficient DAI vault management approach.

The platform, in addition to being a solely leveraged crypto exchange, is working on expanding additional asset classes such as FX, commodities, equities, and indices. gTrade also permits investors to utilize the leverage of up to 1000x, which very few other exchanges do.

Transaction fees at gTrade are also quite low, making it appealing to many traders looking to minimize trading expenses. Moreover, the Gains Network team performs an excellent job of marketing the protocol, assisting it in attracting traders, and maintaining a set amount of transactions on both the Polygon and Arbitrum chains.

GMX now holds the top position on Arbitrum in the Leveraged Trading/Derivatives area alongside Gains Network.

Gains Network wants to become a decentralized trading platform that captures the biggest market share in the future. Furthermore, the project wishes to become more decentralized while using GNS (or veGNS) tokens for management. Profits from the project will be distributed evenly among the staking pools.

The project also aspires to expand horizontally so that everyone has the ability to provide comments and solutions to assist Gains Network in gaining income. The project will be funded if the answer is reasonable.

In the future, Gains Network may improve and extend into sectors such as casino and metaverse, helping to diversify alternatives for investors, which is a really noteworthy point. Now, the Gains Network Review article will explore how the project works.

How does it work?

Once a user initiates a trade, orders will be executed on the DAI stablecoin collateral for any trading pair. The user will then receive the gDAI token back, which is proof of the original DAI collateral. Not only that, during the holding period of gDAI, users will also enjoy a portion of the profits from the transaction fees of other traders.

When using leverage, it uses synthetic assets and is backed by DAI vault and GNS tokens. DAI is taken from the vault to pay traders profits (if positive) or get back DAI from trades where their index is negative.

The biggest difference between Gains Network from other derivatives exchanges is the application of DON, a decentralized Oracle network to support all transactions taking place on-chain. Thus, with DON, users only need to connect a simple wallet to start trading on the gTrade platform.

The trader’s capital remains in their wallet and moves only with the permission of the wallet owner. Asset prices on the platform are powered by a modified version of Chainlink’s DON.

Features

gTrade

As previously mentioned, gTrade is a decentralized leveraged trading platform that covers five asset classes: cryptocurrency (44 trading pairs), forex (17 trading pairs), US stocks (23 trading pairs), US indices (4 trading pairs), and commodities (2 trading pairs). All leveraged deals on gTrade are completed entirely on-chain utilizing Chainlink Oracle and the newest Chainlink DON functionality.

To open positions with any currency pair on gTrade, traders will mortgage DAI into the gDAI Vault. This process will be included directly into the Gains Network trading interface.

The trader will get the gDAI back after collateralizing the DAI, which is confirmation of the initial amount of DAI pledged. Users are entitled to a portion of the transaction fees collected from traders during the gDAI holding period, which will be paid directly to gDAI.

In addition to the standard DAI deposit to receive gDAI back, traders can deposit DAI and then lock gDAI to gain additional benefits (buying and buying gDAI at a cheaper price). The trader will get gNFT as verification of the locked gDAI. The locked gDAI will continue to earn interest as normal.

Staking Pools

Gains Network’s second product is Staking Pools. Here is a place for GNS holders to stake or farm in order to earn additional interest on their investment in this currency. Every trade on gTrade will generate a bonus, which will be paid directly to GNS Stakers in DAI.

Gains Network features pools for DAI, GNS NFT, and Farming Pool for GNS/DAI,… in addition to Pool for GNS. But, these pools are no longer operational.

GNS NFTs

A distinctive characteristic of GNS originates from the project’s NFT – GNS NFT. This NFT’s rarity and benefits are arranged in a hierarchical order: bronze, silver, gold, platinum, and diamond. GNS’s NFT is critical for the project ecosystem and users who want to stay with it for a long time.

There are 1500 NFTs in all, with different unique deals for their holders.

GNS NFT helps increase interest by providing liquidity or single-sided staking. Without NFT, the APR (or APY if compounding daily) displayed in the staking section will be the average APR received by the user based on the previous week’s interest.

Some typical privileges of owning GNS NFT:

Reduced spread fee (Small fee paid to the exchange) when trading: -15% (Bronze), -20% (Silver), -25% (Gold), -30% (Platinum), and -35% ( Diamond)
Bonus multiplier for staking GNS concurrently with NFT: +2% (Bronze), +3% (Silver), +5% (Gold), +8% (Platinum), and +13% (Diamond). It is allowed to stake up to 3 NFT to accumulate the bonus coefficient.
It is allowed to run bots to receive rewards from liquidating other traders’ positions.

Bridge

This is a feature that enables users to transfer their assets (including tokens and NFTs) between the two Arbitrum and Polygon blockchains freely without the requirement for a third party.

Gains Network provides a Bridge product between Ethereum and Polygon to satisfy the demands of exchanging GFARM2, old tokens of GNS and GNS NFTs, back and forth between the two chains.

GNS Token

The GNS token’s forefather is GFARM2, an Ethereum token issued by the Gains Farm project. Once the protocol chose to shift the project to Polygon and Arbitrum, GFARM2 was divided into GNS at a 1:1000 ratio (1 GFARM2 = 1000 GNS).

GNS token is now the official native token of Gains Network.

Key Metrics

Token Name: Gains Network Token
Ticker: GNS
Blockchain: Polygon & Arbitrum
Token Contract: 0xe5417af564e4bfda1c483642db72007871397896 (Polygon)
Token Contract: 0x18c11fd286c5ec11c3b683caa813b77f5163a122 (Arbitrum)
Token Type: Utility & Governance
Total Supply: 30,453,619 GNS
Circulating Supply: 30,453,619 GNS

Token Allocation

Since GNS is a 1:1000 fork of GFARM2, its token allocation will be comparable to that of GFARM2.

Previously, 38,500 GFARM2 were distributed via the farming GFARM2/ETH LP pool. Developers will get 5%, while the governance fund will receive 5%. As a result, the remaining 90% of GFARM2 coins are expected to float on the market.

Use Cases

The GNS token is a token that supports the whole infrastructure of the Gains Network project’s initial feature, gTrade. The GNS token serves as an efficient liquidity support mechanism for the project, allowing it to provide the greatest trading experience while also generating appropriate profits for participants in the project suite token ecosystem. Particularly in the future, the project will be more deflated.

GNS token applications include:

GNS is a native token in the project ecosystem that is used as a store of value and will play numerous functions in the future as the project evolves. DAO allows for decentralized project administration.
The GNS token facilitates the production of liquidity in the DAI vault by granting incentives to individuals that create liquidity for the GNS/DAI trading pair, NFT bots, or affiliates. This contributes to the stability of the DAI vault by restricting withdrawals and raising DAI collateral.

Nonetheless, for users, the GNS token has the following direct applications:

Using the gTrade decentralized trading platform, pay transaction fees.
Trade, buy and sell GNS with each other on cryptocurrency trading platforms.
Use GNS to participate in the staking program and get prizes.

Roadmap and development

January 2023: Gains Network expands to Arbitrum. The total trading volume so far has reached 26 billion USD.
February 17, 2023: GNS Token is listed on Binance Innovation Zone

Core team

Currently Gains Network has not released photos of the group’s members, there are some known names including:

Seb (Founder, Full-stack dev, Strategy): Operating in Europe
Nathan (Full-stack dev, Management)
Crumb (Full-stack dev)
Dreamersnat (Frontend dev)

Investors & Partners

Gains Network currently has no previous investments.

Some of Gains Network’s key partners include Polygon and Arbitrum, two large partners who help gTrade grow within their own ecosystem. Furthermore, Chainlink will be an important partner in the Oracle and MarkerDAO arrays, with DAI serving as the primary collateral.

Conclusion of Gains Network Review

The Gains Network project is one of the most comprehensive and horizontal growth projects accessible today when compared to all DeFi products, particularly in the derivatives area. Since the project’s trading assets are diverse, including crypto, forex, commodities, stocks, and indices.

Trading derivatives with leverage is not going away. Gains Network has rewarded early investors quite well thus far, and this is a product with endless demand. The gTrade platform, on the other hand, has a delicate balance and is always risky. Hopefully the Gains Network Review article has helped you understand more about the project.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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