Gains Network AMA with CRE8R DAO
Primer: Seb from Gains Network is back for a 2nd AMA with Fugu of CRE8R DAO. In this AMA, he shared the developments over at Gains Network, particularly the upcoming release of stock trading on their platform. What stocks will they be releasing and what’s in store for them next?
Gains Network aims to build a set of projects in DeFi to offer the best UX possible
Their first project is gTrade, a decentralized leverage trading platform on Polygon
What Other Products Are They Building?
Focus on gTrade at the moment
Have considered creating a casino and a metaverse project
A decentralized leverage trading platform
Their platform does not have a funding fee. They do not need to have an equilibrium between longs and shorts
Their platform does not have any price impact or slippage
They have the lowest trading fees
They have a guaranteed stop losses
Stock trading will be available on their platform soon:
Will offer 3 stocks at the start (Apple, Google, and Facebook/Meta)
Their second launch would include 20 stocks
Stock Trading On Gains Network
Users are not buying anything. They are sending DAI to their smart contract to bet on the price
They leverage their GNS-DAI liquidity and their DAI vault to offer leveraged trading
They can integrate any market just by plugging in the APIs they want
Have discussed about cross-pairs before (e.g. Tesla-Doge, Google price in BTC, etc.)
Ability to Trade Anything On gTrade
Yes, anything with a price feed can be traded on gTrade but it has to be a somewhat efficient market
It cannot be a too predictable market because people could take the money out of the system
As their system does not match buyers with sellers, they become the counterparties. Hence, it has to be fair
Where Do They Get The Price Feed For Their Stocks?
From a combination of 5 premium APIs that are Chainlink nodes
They take the median of the 5 feeds
The default Chainlink price feeds are only updated every 30 secs or 5 mins depending on the price feed
Their architecture needs a real-time price feed, so they had to rebuild it
How Are They Differentiated From Their Competitors?
Invented the architecture that allows the listing of any assets
They depend on the spot market, unlike other protocols that are built on top of the spot market
Other synthetic platforms require liquidity for each trading pair. If fees are divided for each trading pair, the yield suffers as a result
In contrast, they only need to incentivize their GNS-DAI pool and DAI vault
Synthetix And Synthetic Stock Trading
Not sure why Synthetix has not released synthetic stock trading yet
Why Select These First 3 Stocks?
Apple, Facebook/Meta & Google/Alphabet are the largest stocks and are more reliable
Will be listing large cap stocks before they offer smaller ones
The next 20 stocks is up for everyone to guess
At the moment, they are focused on US stocks because they have access to the best US stocks APIs
Did not have enough time to research other international stock APIs
Researching whether is it possible for them to list ETFs
Will Crypto Natives Be Interested In Trading Stocks?
Traders will be excited to trade stocks on-chain with leverage
There’s a lot of hassle in trading stocks in centralized platforms
Gains offers a higher amount of leverage due to their liquidity efficiency
Gains will pause the opening of trades right before earnings announcements and dividend distributions as these are patterns that can be exploited
Closing trades will still be allowed
Forex and stock markets are closed during the weekends. Gains will be following suit with that arrangement
Will They Be Listing Commodities And Indices?
Commodities will be coming to their platform
Will consider listing indices
Will also be considering custom indices
Are They Hosting Some More Trading Competitions?
A trading competition just concluded on 21 April
Will be having more competitions in the future. Details will be announced when they are available
Why Did They Go With DAI As Collateral?
DAI has been around the longest, is the most decentralized, and the least risky one
Currently doing research on a multi-stablecoin vault
Have been thinking of using other collateral like Bitcoin and Wrapped Bitcoin
Growth Of Gains Over The Past 3 Months
Volume and liquidity has been growing over the past month
Over a 3-months time frame, Bitcoin has dragged the market down
Bitcoin and Ethereum only make up 20% of the volume. The volume is very well-distributed across all pairs they have
Their UI And UX
Have a customized backend that’s connected to private RPCs. They provide higher performance and more reliability
The frontend does not connect to the blockchain. It just uses the information from the backend, leading to faster loading speed on the website
Use Case And Mechanism
Use case is to be minted and burnt in their trading platform
GNS token is the counterparty to all trades
When traders open a trade, their DAI goes to the DAI vault and vice versa
If the DAI vault is undercollateralized, it will mint GNS tokens and sell it into the GNS-DAI pool and vice versa
Currently, the data shows that GNS token is deflationary (5 - 10% per year)
Most fees generated by the platform flows back to the GNS-DAI pool. The yield ranges from 40% to 100%
Do They Have Plans For Single-Sided Staking?
Their roadmap includes using the fees they earned to buy and own more of the GNS-DAI pool
The wallet will take the impermanent loss
Will redirect the yield to single-sided GNS staking
What Are Traders Earning The APY In?
Fees are taken in DAI but traders receive the fees in GNS in the GNS-DAI pool
The DAI goes to the DAI vault to ensure that it is collateralized
Do They Have Any VC Backers?
No, they are a fair launch project
Their Path Towards Decentralization
Decentralization is one of their core values
Wants to make sure everything is done properly. Adopting a progressive decentralization model
Any Plans To Expand To Other Chains?
Exploring Arbitrum as their next potential chain
What Other Events Are On The Horizon?
Stocks, commodities, indices, and cross-pairs
V7 will be coming up before the end of the year. It features partial adding and closing of positions
Single-sided GNS staking
Focused on adoption and growing the volume
Have published their roadmap on Medium
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