Hi guys, let me introduce you to gains network (GNS) a KYC free DEX. As you may have noticed, many CEXs are beginning to get hit by regulators and authorities who no longer permit exchange XYZ to allow users to leverage trade. DYDX, binance, and many others IP ban users from various areas around the world in order to satisfy demands of the regulators. This is frankly an insult to our community. A number of platforms have emerged to permit leverage trading without KYC or IP banning regions and with that said I would like to introduce you to GNS on Polygon Network.
Gains is a decentralized leverage trading platform specializing in synthetic assets. It has lots of potential for future growth. It offers customers a unique leverage trading experience you won’t find anywhere else:
Over 40 crypto assets
Up to 150x leverage
Stocks will launch very soon
No region banning
No maintenance fees
No scam wicks
Guaranteed stop loss
These features make it one of the most affordable dex on the market and the potential is huge for an expanding customer base as more doors shut on users using CEX. The platform takes data from spot prices on 8 exchanges and averages the price for gains customers. This is the mechanism that mutes scamwicks on traditional centralized exchanges. No other exchange can offer this protection to its users.
At current revenue, it takes in around 20 million dai per year through fees and re-distributes a portion of that to the ecosystem. The p/e ratio is around a 5
The trading platforms liquidity comes from the GNS Dai pool on quick swap. Users then take the LP tokens and stake them on gainsnetwork and are given a dashboard that shows current APY APR and holdings. There is another pool, the dai pool, which acts as a buffer for wins and losses. Together the GNS DAI LP pool work with the Dai pool to create the needed liquidity for traders to take profits if they win or absorb profits for GNS if they are liquidated.
The mechanism of action is thus: users place a trade. Trader wins, dai vault pays them their dai. Since the dai vault is a buffer it has a range where no action is taken: at 100-110% full the dai vault simply pays and refills itself on fees and liquidations. If too many traders win and it sinks below 100% then it mints GNS and sells it for DAI and refills the vault. If too many traders lose and it fills past 110% then it buys GNS on open market and sends to burn address. A year of data shows it has been deflationary with nearly a 20% reduction in GNS supply. LPers enjoy a 20-50% APY (with surges to 140-180% in past) due to trading activity. Holders of GNS token enjoy price appreciation by deflation. Soon GNS holders will be able to stake the token directly for a small payout in DAI. Currently the dai pool stakers receive 8 to 20% apy depending on trading activity.
The development team was one man for the better part of a year, but has expanded to 3 devs and 2 in marketing. The main dev is always available in the TG and often troubleshoots users’ issues right in front of everyone. The roadmap is ambitious but realistic. The dev works every day even on weekends. To quote him, he’s attempting to build the decentralized Robin hood or e Toro.
The next items on the roadmap are stocks which may launch in the next few days to weeks, followed by single sided staking of the GNS token direct to give holders some dai profits from the protocol. Other items on the roadmap are rollup implementation to remove polygon congestion from the equation. In addition the announced v7 update will lead to partial take profits and other trading enhancements for the end user.
Gains leader is anonymous and only known by his first name. If he were to disappear due to any unforeseen circumstances the platform would stagnate as has happened to CAP finance on arbitrum when their leader left.
There is a risk of smart contract exploitation but so far the protocol has proven solid and every smart contract release is Audited by certic.
Risk of market conditions draining the pool: on the short term traders can win and win big, causing minting of dai which causes sell pressure. On the whole these are temporary events but they do still occur.
Polygon congestion is another risk by which the customer experience is impacted. Numerous times Polygon has had issues with block re-orgs or pure congestion (sunflower farms) where traders flooded the TG to seek answers as to why trades did or didn’t post and why SL didn’t execute. The polygon infrastructure has had a true impact on trading for end users and Seb has worked tirelessly to optimize the execution of smart contracts on the platform but sometimes even the efficiency of gains is bottlenecked by Polygon. I personally believe this is the biggest threat to gains long term success if polygon cannot make a clean and efficient blockchain.
My position on GNS is as a token holder and LP staker. I have a greater than 20k position on the network. I am not part of the team simply a investor sharing a good product for the defi community, one which I believe has long term growth potential.
Beware of scams:
Pleased be advised that any telegram groups or tweets from gains offering airdrops are a scam. GNS is not being air dropped and we have had users fall victim to these scams which copy the official group announcements and official tweets.