Gains Network

Derivatives

Gains is a decentralized perpetuals exchange that offers synthetic leverage trading for crypto, forex, and stocks.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Gains offers a great experience with its gTrade platform for users to trade a broad range of assets with high leverage through a combination of strong tokenomics and lower trading fees.
What we like less
The platform is built around the utility of the GNS token which acts as the ultimate backstop to traders winning on the gTrade platform through potential over-the-counter (OTC) sales of the protocol's reserves.
What it means for you
Gains is one of the top platforms for you to place directionally levered bets and hedge against market volatility. You can earn a portion of the platform's trading-related fees by staking its native utility and liquidity provider tokens.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: GNS
  • Tags: Derivatives
Key Metrics
  • TVL: $42.4M (Rank #90)
  • TVL Ranking by Derivatives: #4
  • Blockchain: Arbitrum, Polygon
  • Chain TVL
    • Arbitrum: $37.89M
    • Polygon: $4.56M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including Certik
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • No governance token and/or contracts are fully immutable
Protocol Design
  • Protocol could be susceptible to negative feedback loops
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized derivatives, such as LPs serving as the counterparty for all platform traders
  • The protocol uses its own token $GNS to recollateralize the system for leveraged trading. This means significant trader profits will cause token inflation and may have adverse consequences on the protocol's liquidity.
Things to know about Gains Network

How Gains Network works

Gains Network is a trading platform that enables on-chain leverage trading with low trading fees. The platform uses an innovative synthetic trading architecture that is powered by its GNS utility token. Gains has achieved this through development of their own custom-built Chainlink decentralized oracle network (DON) to provide real-time, aggregated prices for their leveraged trading products. The ecosystem uses two liquidity pools (GNS-DAI and DAI-only pool) to execute trades for all pairs listed on the gTrade derivatives platform. This is a major advantage over competitive platforms who must build and maintain liquidity every time a new asset is listed. Trades are opened with DAI collateral, regardless of the trading pair. The leverage is synthetic and backed by the DAI vault, the GNS-DAI liquidity pool, and the GNS token. After a trade is closed, any profits or remaining balance is paid out in DAI to the trader. GNS is burned when the DAI vault becomes sufficiently overcollateralized (currently at 130% ratio), which counters the inflationary emissions distributed to the GNS-DAI vault.

How Gains Network makes money

The protocol charges a fee that is calculated based on the value of the trader's total position size. A rollover fee is collected only on the collateral itself. gTrade generates revenue from opening and closing trades, rollover and funding fees, and updating stop losses. A portion of these fees are allocated to the project and development fund and the remaining to GNS-DAI liquidity providers and GNS stakers.

How you make money on Gains Network

You can generated yield by staking GNS tokens to earn gTrade platform fees (paid in DAI). In total, 40% of the fees from market and closing orders are distributed to GNS stakers. GNS also offers non-fungible tokens (NFTs) that can be staked to further boost your share of the staking rewards. Liquidity providers who stake their GNS-DAI LP token earn 20% of market and closing orders from trading fees (paid in GNS) as well as QuickSwap fees (paid in dQUICK). DAI vault depositors earn the remaining 40% of fees for acting as the collateral for all open trades.

Gains Network Pools
Gains USD Market Making
16.7%
Yield
$31M
TVL
Risk
C
Chain
Arbitrum
Gains USD Market Making
10.6%
Yield
$3M
TVL
Risk
C
Chain
Polygon