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

Derivatives

Gains Network

Protocol Code Quality

Protocol Maturity

Protocol Design

Risk Rating

Watch Out

* [Documentation](https://gains-network.gitbook.io/docs-home/) 
 * Auditors 
 	* [Certik](https://www.certik.com/projects/gains-network) 
 	* [Audits](https://www.certik.com/projects/gainsnetwork) 
 * Please see our [FAQ on experienced auditors](https://help.exponential.fi/en/articles/6381015-what-are-experienced-auditors)

Exploit/Hacks

green

None

* [Website](https://gainsnetwork.io/)  
 * Token: GNS  
 * Tags: Derivatives

Info

* TVL: $19.3M (Rank #102)  
 * TVL Ranking by Derivatives: #3  
 * Blockchain: Polygon  
 * Chain TVL  
 	* Polygon: $19.31M

Key Metrics

Information


- Code reviewed by at least one experienced auditor including [Certik](https://www.certik.com/projects/gains-network)
- Anonymous team reduces transparency
- No documented protocol hacks since launch
- Robust controls to mitigate oracle price manipulation

yellow


- Core protocol launched in 2020; maturity less than a year increases technical risk as smart contracts are less battle-tested
- Top 20% by total value locked slightly reduces risk
- Centralized governance increases risk
- No governance token


- Protocol could be susceptible to negative feedback loops
- The protocol uses its own token $GNS to fund liquidity for leveraged trading. This means negative price action will cause token inflation and may have adverse consequences on the protocol's liquidity.

Risk Assessment

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

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 we like less

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.

What it means for you

Summary

#### 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.