While it feels like the bear market is over, not everyone is so confident in stating that we are in fact in the bull market in the cryptocurrency world. The recent upwards push has meant that many coins and tokens have seen green numbers after several months of drawdowns.

Yet, not every project was so helpless in 2022. Gains Network has seen an outstanding price movement ever since its inception. How is it possible that this token was able to go completely against the vast majority of the cryptocurrencies in the horrific year of 2022.

What is Gains Network (GNS)?

Gains Network (GNS) is a decentralized finance (DeFi) project that has a goal of creating one of the best DeFi trading platforms in the cryptocurrency world. The gTrade platform, which is currently online, is aiming to be a decentralized leveraged trading platform with Several benefits and features that will be explored in more depth later.

Gains Network encompasses a wide variety of products and services that it has released to its users. There are for instance its GNS token or NFTs, which have different utilities and benefits. Both of them are built on Ethereum, with GNS token adhering to ERC- 20 token standard and NFTs adhering to ERC-721 standard.

Yet, the gTrade platform has been launched on Polygon (MATIC) and is currently also bridged with Arbitrum. More layer-2 solutions built around or on Ethereum are expected to be added later on in the adoption stages of the development of Gains Network.

The long-term vision of the project is to become a DAO, while gTrade aims to become one of the most adopted decentralized leveraged trading platforms in the world. If both of these goals are achieved, the next milestones would be to create more DeFi products that would bring revenue, which can be distributed directly through the staking pools of Gains Network via its GNS token. Looking far ahead into the future, the team would like for Gains Network to launch different projects such as a casino or its own Metaverse .

How does gTrade work?

gTrade is in the very center of the Gains Network. This liquidity-efficient trading platform is built around synthetic architecture to help produce a superior trading experience. What is important about it is the fact that the users maintain full custody of their assets while trading. Moreover, this platform allows trading not only of cryptocurrencies, but also commodities, stocks and forex.

Daily trade volume on gTrade divided into asset classes. Source: dune.com

Other than having a very competitive fees, which can be even more competitive if the NFTs or GNS tokens are used or owned by the trader, gTrade also prides itself with a leverage trading that it offers to its customers. It currently offers a leverage of up to 1000x for forex, 150x for cryptocurrencies, 100x for stocks and 35x for indices.

This advanced decentralized leveraged trading platform also offers other features and benefits to its users. These include for instance a wide range of trading pairs as well as the option of using GNS tokens as collateral. It also offers trading features such as liquidations or limit orders.

Maybe that is one of the reasons why many traders are now turning to this solution. This can be seen at the chart below, which shows the number of old and new traders as well as their cumulative number, which clearly shows the rise in the popularity of gTrade among this group of users.

Number of daily traders. Source: dune.com

Team and history

The whole project was initially developed by Seb, who is the founder and full-stack developer. Later on, Seb was joined by Nathan, Lunaman, Crumb and a bunch of other developers, who are currently running not only the day-to-day operations of Gains Network, but also its development .

Initially, Seb was developing the whole project by himself, for about one year. The project was called GFARM2, during which the initial 1,500 NFTs were generated. It was launched on Ethereum and distributed fairly via the GFARM2/ETF liquidity provider pool. to Polygon came later on, during the time of the rebranding of the project, which was also when the GNS token came to light with a 1:1000 split.

History of different pools

Gains Network used to consist of several different reward pools. These were for instance DAI Vault, Farming Pool and GNS/DAI Pool, all of which served different functions. While DAI Vault allowed anyone to stake DAI in the vault and earn DAI rewards solely based on On the volume of the platforms trading, GNS/DAI Pool allowed the users to get GNS rewards and dQUICK rewards. These were rewards connected to staking, with the dQUICK (Dragon’s QUICK) reward being obtained by depositing Quick tokens into staking contracts.

However, all of these pools are not active anymore. The only pool that matters as of now is the GNS pool . It currently has an inflation of 0.54%, gDAI vault balance of almost $50 million and the APY of 4.2% on Polygon with 3.46 % on Arbitrum.

Current statistics connected to gDAI pool. Source- gainsnetwork.io

Currently, the most important vault is the gDAI vault, which serves a bit as a mediator between trading activities of different users. Those traders who win will receive their winnings through the gDAI Vault, while those who lose will have to send it to the vault . The whole process is possible thanks to a small portion of trading fees which are stored in the vault and redistributed to those, who have staked their DAI tokens within the vault and thus provided liquidity.

The stakers of DAI tokens in the vault receive gDAI in return, which serves as a representation of the staked DAI tokens in the vault. They also serve as a payment mechanism for the reward of the trading fees. Once they decide to withdraw their DAI tokens From the gDAI vault, these gDAI tokens are burned.

Types of NFTs and their utility

One of the key features of Gains Network are its NFTs . While many projects aspire to claim this, Gains Network with its ERC-721 standard for NFTs has actually been putting the work in, which is currently helping it with the rise of its ecosystem.

Gains Network split the NFTs into 5 different types. These are Bronze, Silver, Gold, Platinum and Diamond. Each of the categories has different parameters and benefits that it offers to its holders. Moreover, each of them has a different supply, with the Bronze category having 500 NFTs all the way down to Diamond with only 100 NFTs.

Types of NFT of Gains Network and their benefits, source- gains-network.github.io

Holding NFTs has several benefits, but probably the most important one is the reduction of spread when trading. For the bronze category this is -15%, but with the Diamond NFTs this goes as low as -35%. The only thing that needs to be done is holding the NFT in the wallet, which is used for trading.

Yet, there are other pros to having these NFTs right in the DeFi trading platform . Holding and NFT can help with boosting the Single Sided Staking (SSS) rewards. The boost again varies, with the smallest boost of 2% being connected to Bronze NFTs and the biggest boost of 13% with Diamond.

The distribution of SSS boosts among NFT types, source- gains-network.github.io

It is also expected that with the expanding ecosystem the NFTs will have more features and benefits. And with their limited supply it can also be assumed that their value will only increase in time with increasing demand.

Tokenomics

Gains Network does have its own token. GNS token is an ERC-20 token standard that is an integral part of the whole ecosystem. It has many different roles such as supporting the liquidity efficiency of the DAI vault, serving as a backstop for traders or being one of the several different ways the protocol can be governed. It can also be used to recollateralised the gDAI vault.

In the future, it is expected that the token will be an integral part of the transition to Decentralized Autonomous Organization (DAO), which is one of the main goals of the project. It is expected that the DAO will be mostly governed by GNS holders .

Amongst other things, GNS has other benefits and features. These include minting of rewards for GNS/DAI liquidity pool providers, affiliates or the NFT bots of the platform. In essence, most of its features are connected to either governing of the whole project or Helping with its stability and sustainability over time, which manifests through different utilities.

GNS token has a total supply of 38,500,000 GNS, with the maximum supply of 100,000,000 GNS. However, there are currently about 30 million tokens in circulation and many expect this number to be only decreasing as the team wants to encourage as early as the system enters Well as support those who stood by the project at the beginning.

GNS is one of very few tokens that has been seeing mostly upside since its inception. The trading history of GNS goes back to the beginning of 2022, when it started trading around 50 cents. Currently it sits comfortably at about $7.5 with the ATH above $10 . This can be mostly attributed to the fact that the token has been mostly deflationary through its existence, something that is also visible when looking at the number of tokens in circulation.

Chart of GNS token since its launch, source- coinmarketcap.com

Conclusion

While Gains Network is in a rather competitive field of DeFi trading protocols, it feels like it has established itself in the market pretty well. It has been developing rather quickly, with growing community, utility of its features as well as price of the token. Should all of this continue, it can achieve many of its goals in no time.

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