Gains Network is building the decentralized finance ecosystem of the future. The goal is to build the most advanced and optimised suite of DeFi products in the space.
They have launched the first decentralized leverage trading platform on Polygon (gTrade), and that is only our first product. The uniquely designed architecture makes gTrade 100-1000x more capital efficient than competitors’ platforms and still allow for extremely low trading fees, a wide range of leverage (up to 150x on cryptos and up to 1000x on forex), and any assets/pair (cryptocurrencies, forex, stocks, commodities, indexes). More info on gTrade (Leveraged Trading)
Gains Network Defi whole protocol revolves around the ecosystem’s ERC20 utility token (GNS) and ERC721 utility token (NFTs). GNS and the NFTs are designed to be actively used on the platform. GNS’s value is tied to the success of the platform, more volume and trades translate to more buying pressure and increased burning pressure on the token in the long term. More info on GNS Token.
GNS is the platform’s utility token. Whenever a trade is opened, GNS needs to be used and burnt and when a trade is closed, GNS is minted back to pay the trader. GNS was migrated from GFARM2 (1:1000 split). GFARM2 was a 100% community distributed token through farming, no private or public presales. Migration happened in October 2021 and it’ll remain open indefinitely until all GFARM2 have migrated to GNS.
The token is integrated deeply into each product and is necessary for them to work. The tokenomics of the token are directly tied to the use case of each product. The more users, the more inherent value GNS will possess. You can also earn passive rewards associated with each product. For example you can stake GNS/DAI Quickswap LP tokens on Pools to earn a share of the trading fees from the leverage platform.
The rewards come from actual usage of the trading platform and are used to incentivize liquidity providers, which are vital for our products to function properly and to provide the best user experience. We do not guarantee returns, as they depend directly on the daily volume of our products.The supply distributed through farming was 38,500 GFARM2 (38,500,000 GNS). No more tokens can be farmed, they can only be minted by the trading platform to pay out winnings. The max. total supply is 100,000,000 GNS.
The products create demand for the token, and can put a deflationary pressure on the supply.The token is at the core of every single one of products. Thje platform couldn’t exist without our token and the ability to mint and burn it. It is well known that more traders lose more than they win, decades of statistics in traditional markets support this thesis. The trading platform was built based on this assumption. Therefore more tokens should be burned than minted, which should reduce the supply of GNS tokens in the long run.
Newly opened trades buy and burn GNS instantly, while closed trades are paid with DAI from our trading vault.The trading vault, which lets opened trades apply direct buying pressure, while distributing the selling pressure over a longer period of time.
When a user opens a trade on gTrade, DAI is used to market buy GNS on Quickswap and proceeds get burned. When closing a trade, instead of minting and selling GNS directly, DAI from the vault is used, which is then automatically refilled by a bot to the initial amount of DAI slowly over time by minting and selling GNS over a long period of time.
NFTs with real DeFi use cases
The NFTs are a set of 5 different types of NFTs that are the master keys of the entire ecosystem.They unlock exclusive benefits within the products of ecosystem. These are:
Reduced spread when trading: Spread is reduced by 15% (Bronze), 20% (Silver), 25% (Gold), 30% (Platinum), and 35% (Diamond). You just need to hold the NFT on your trading wallet for the reduction to take place.
Run a bot to get rewards from executing liquidations and limit orders. Instructions to set-up and run the bot are here.
Boost your LP rewards by staking up to 3 NFTs on the v5 pool. The boosts are 2% (Bronze), 3% (Silver), 5% (Gold), 8% (Platinum), and 13% (Diamond).
Other use cases will be revealed as the ecosystem expands.
There are only 1500 NFTs in total which are divided into the following categories:
500 Bronze Keys
400 Silver Keys
300 Golden Keys
200 Platinum Keys
100 Diamond Keys
All NFTs were claimed by liquidity providers who supplied at least 1% of the total liquidity. They were rewarded with NFT credits (not ERC20 token) which allowed the minting of these NFTs. The diamond keys required the most amount of NFT credits, and bronze keys the least.
The Information Presented Here Does Not Constitute Investment Advice Or An Offer To Invest. The Statements, Views, And Opinions Expressed In This Article Are Solely Those Of The Author/company And Do Not Represent Those Of Coinworldstory. We Strongly Advise Our Readers To Do Your Own Research (DYOR) Before Investing In Any Cryptocurrency, Blockchain Project, Or Ico, Particularly Those That Guarantee Profits. Furthermore, Coinworldstory Does Not Guarantee Or Imply That The Cryptocurrencies Or Projects Published Are Legal In Any Specific Reader’s Location. It Is The Reader’s Responsibility To Know The Laws Regarding Cryptocurrencies And Icos In His Or Her Country. Please Respect Your Country Law & Take Advice From Your Advisor .
One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.