Gains Network Review – Derivative DEX For Leveraged Perpetual Trading
Torsten Hartmann
Gains Network, a decentralized derivatives trading platform developed on the Polygon network, enables users to trade leveraged perpetual contracts.
Gains Network is a crypto derivatives platform that stands out from its competitors regarding decentralization, leverage, and affordability.
The project’s core is gTrade, a comprehensive toolkit to trade digital assets with unprecedented power and speed. It permits users up to 1000x leverage, whereas most other platforms offer up to 100x leverage. Furthermore, the transaction fees on Gains Network are significantly lower than those on other exchanges, making it a go-to choice for traders who want to minimize their trading costs.
To ensure a thriving ecosystem, Gains Network’s DAI vault management approach efficiently aids in safeguarding users’ capital against volatility while offering maximum returns on investment. Additionally, Gains Network looks forward to expanding asset classes such as FX, commodities, equities, and indices.
Also worth noting is that the marketing campaigns by the Gains’ team have successfully attracted traders in significant numbers both on Polygon and Arbitrum chains thus helping keep an equilibrium when it comes to transaction rates on these chains. All these factors make Gains Network stand out among its peers.
| 💰 Fees | Features | Pros | Cons |
|---|---|---|---|
| 📊 0% fee on leverage loans, low fee plan on gTrade | 🔧 Decentralized derivatives trading platform | ✅ High leverage (up to 150x for crypto, 1000x for forex) | ❗ Potential vulnerabilities and centralization risks |
| 🔗 Built on the Polygon network, with plans to expand to other networks | ✅ Full custody of assets | ||
| 🪙 GNS token used for DAO Voting, liquidity support, and incentives | ✅ Decentralized lending protocol | ||
| 📈 Supports crypto, stock, and forex trading | ✅ User-friendly interface | ||
| 🎁 Unique NFTs providing additional incentives and benefits | ✅ Audited by Certik |
What you'll learn 👉
Main Features:
- Users of the decentralized derivatives trading platform Gains Network can utilize leverage to trade perpetual contracts.
- Gains Network’s leverage trading platform, gTrade, enables traders of crypto derivatives to use leverage of up to 150x and up to 1000x for FX trades.
- Decentralized loans and synthetic assets support Gains Network leverage trading. Users can save money using its leverage mechanism instead of competing leverage trading platforms’ loan fees.
- The Gains network’s native currency, the GNS token, underpins its financial infrastructure. When the decentralized government of GNS is operational, it will be used for DAO voting.
- Gains Network seeks to provide a decentralized leveraged trading platform that is robust, easy to use, and liquid.
Fees
Gains Network’s leverage trading platform offers a no-fee lending structure, as was already mentioned.
What is the role of GNS token?
The Gains platform is built on a 100% community-distributed utility token, GNS. The GNS tokens have a maximum supply of 100,000,000, but only 38,500,000 has been allocated for farming. This is to ensure that no private or public pre-sales took place to give the users complete fairness and transparency.
Recently they launched an upgrade where people can open trades using DAI which then gets converted to GNS and burned. This means that it will forever be removed from the circulating supply and reduce the total amount of active GNS in the market putting deflationary pressure on its value. Every time someone attempts a leveraged trading and fails, it shows an even stronger proof of concept and sinks more tokens out from existence.
What are Gains Network NFTs?
Gains Network NFTs are non-fungible tokens issued by Gains Network that can be used on their platform. They come in five categories (Bronze, Silver, Gold, Platinum, and Diamond), with a total of 1500 NFTs. Holding a GNS NFT unlocks several benefits, including more staking rewards, reduced spread while trading, and the ability to run a bot to get rewards from executing liquidations and limit orders. GNS NFT holders can also boost their LP rewards by staking up to three NFTs on the v6 pool.
The GNS NFTs were claimed by liquidity providers who supplied at least 1% of the total liquidity. Additionally, Gains Network is researching the integration of their NFTs into their future Metaverse space, which could offer additional perks for GNS NFT holders in the future.
Read also:
- What is GMX and is it safe for leverage trading?
- How good is ApeX Pro DEX for perpetual trading?
- Is dYdX legit DEX for leveraged trading?
- dYdX vs GMX vs ApeX Pro
Leverage maximum and supported coins
Gains Network’s leverage trading platform, gTrade, enables traders of crypto derivatives to use leverage of up to 150x and up to 1000x for FX trades.
Gains Network currently enables trading perpetual contracts on the cryptocurrency platforms Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). Soon, there will be stocks, commodities, and indexes.
While Gains Network’s leverage trading contract has been operational for approximately 5 months (as of this writing) and has handled over 460,000 trade transactions, it is important to keep in mind that smart contract protocols are high-level computing commands and are susceptible to flaws that can be exploited in a variety of ways.
Users should thus conduct their own research and take action to safeguard their funds and reduce damages in the event of unforeseen events.
How does gTrade platform work?
The gTrade platform of Gains Network is a decentralized leveraged trading platform that utilizes synthetic architecture. This means that users do not take ownership of the asset or borrow funds to access, leverage, and multiply potential returns.
Instead of having order books or liquidity for each pair, gTrade has a single gDAI vault for all trading pairs listed, which is more capital efficient. The platform uses synthetic leverage, allowing traders to magnify their exposure to an asset without actually owning it.
A real-time custom Chainlink decentralized oracle network provides real-time spot prices on-demand, ensuring accurate and reliable asset prices. gTrade supports high leverages on cryptos, forex, stocks, indices, and commodities.
All trades are executed 100% on-chain, ensuring transparency and decentralization. Users can set up practice mode and get help by asking questions in the Gains Network Telegram chat or Discord support channel.
When a user wins a trade, it is taken out from the DAI trading vault, and when a user loses a trade, it is used to buy GNS and burn it when the trading vault is overcollateralized.
Security of GainsNetwork
Due to their experimental platform, gainsnetwork.io prioritizes security. CertiK has audited Gains Network several times to verify platform and user fund security. Certik’s audit assessment confirms Gains Network’s contracts are safe but suggests modest weaknesses and centralization. The Gains Network team acknowledged this report. Yet, smart contract protocols are high-level computing commands and vulnerable to multiple exploits. So, consumers should investigate and take precautions to protect their funds and limit losses in the event of an emergency.
According to coingecko.com, Gains Network’s leverage trading contract has executed over 460,000 trades in five months. These transactions were safe, and Gains Network users have not reported wallet hacks.
According to coingecko.com, Gains Network provides asset values using a modified version of Chainlink’s Decentralized Oracle Network (DON) and audits. DON’s decentralized nodes securely and reliably supply smart contract data. Gains Network guarantees platform asset values with DON.
According to coingecko.com, Gains Network’s gTrade platform lets traders trade without registering or depositing funds. gTrade trading requires only a wallet connection. Smart contracts allow wallet owners to authorize the movement of traders’ capital. Users have full control over their funds, reducing the risk of hacking or theft. Gains Network does not keep monies.
To summarize, Gains Network secures its platform and customers’ funds through numerous independent audits, a decentralized oracle network for asset values, and a system that lets users keep their holdings. Since smart contract systems are vulnerable, users should still perform their own research and take precautions to protect their funds and limit losses.
Roadmap and Future Plans
Gains Network has plans to expand their ecosystem by creating a decentralized casino, which they believe will contribute to the longevity of the project. They have stated on their GitBook that the casino will provide a market that is 100 times larger than trading, creating long-term deflationary pressure on the GNS token supply. GNS tokens will continue to be used for interaction on the platform, just as they are currently used for trading. Additionally, NFTs will be introduced to unlock better probabilities of winning.
The company has promised to introduce more products in the future. The success of Gains Network can be seen in the platform’s record-breaking $120M+ 24hr trading volume in August 2021, which has now grown to over $700MM in trading volume. With each partnership, more traders are drawn to the platform, strengthening its reputation. Gains Network is an example of the future of DeFi and its potential.
