Gains Network

GNS

GNS is the governance and revenue-share token for Gains Network.

Risk Rating
Good
$6.76
2.64%
Summary
What we like
GNS has solid value accrual mechanisms that benefit from decentralized leverage trading across crypto assets, commodities, and forex.
What we like less
GNS is sold over-the-counter (OTC) whenever the DAI vault becomes undercollateralized. The team also remains anonymous which reduces transparency.
What it means for you
Staking GNS enables you to earn ~32.5% of all fees generated by the platform on average.
Information
Blockchain
  • Polygon
Key Metrics
  • Market Cap: $229.3M
  • Fully Diluted Valluation: $229.3M
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #52
  • Circulating Supply: 33,945,019
  • Total Supply: 33,945,019
  • Total Supply: 33,945,019
  • Volume (24H): $16M
  • ATH: $12.48 (02/17/2023)
  • ATL: $0.27 (11/29/2021)
Risk Assessment
Good
Asset Strength

GNS is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Gains Network, a protocol rated as Watch out.

Asset Tokenomics

GNS has a fixed supply. GNS is potentially exposed to death spiral risk as it is minted to recollateralize the system in case of significant trader profits; however, there are mechanisms in place to prevent reflexivity. GNS stakers receives ~60% of platform fees paid in DAI.

Asset Volatility

GNS trades with little to no correlation to the overall market.

Dependencies

Gains Network

Things to know about GNS

What is GNS used for?

GNS is the governance and revenue-sharing token for gTrade. Stakers receive a portion of platform fees in DAI. It supports the liquidity of the DAI vault by minting rewards for GNS-DAI liquidity providers (LPs), thus allowing the DAI to remain within the vault. This serves to add stability by reducing vault drawdowns and maintaining overcollateralization. GNS is also burned when the DAI vault becomes sufficiently overcollateralized (currently set at 130%) to counter inflationary protocol rewards. Lastly, it serves as the ultimate backstop to traders winning on gTrade through OTC sales of the protocol's wallet reserves.

GNS tokenomics

The max supply of GNS is 100M tokens, with an initial supply of 38.5M in circulation. However, this max supply is just a failsafe mechanism and should never be reached. Over time, the token supply is expected to be deflationary as GNS is burnt.

How does GNS accrue value?

GNS collects 40% of fees from market orders and 15% of fees from limit orders and distributes to stakers (paid in DAI). Since ~70% of trades are market orders, about 32.5% of fees from all platform orders will go to GNS stakers on average. As more GNS gets burnt over time, there should also be deflationary pressure on the token.

GNS Pools
Beefy GNS Fee Sharing
5.8%
Yield
$41K
TVL
Risk
C
Protocol
Beefy
Chain
Polygon