GNS - What is Gains Network and How it Works
This beginner's guide provides an in-depth look into Gains Network (GNS), a decentralized leveraged trading platform. Learn about its special NFT collection, how it protects against whale trades, and discover how you can get involved with GNS through Kassandra's DAPP.
Introduction
Decentralized trading platforms often grapple with challenges such as high transaction fees, limited asset options, and complex user interfaces. Gains Network aims to break these barriers by offering a streamlined, user-friendly decentralized leveraged trading platform.
What is Gains Network? An Overview
Gains Network is a leveraged trading platform currently operating on Polygon and Arbitrum. It distinguishes itself from other platforms through a synthetic asset system that functions entirely on DAI and its native token, GNS.
Leveraging Chainlink price feeds and a custom Decentralized Oracle Network (DON), the platform ensures accurate and reliable asset pricing. Gains Network is not just another decentralized trading platform; it aims to solve some of the most pressing challenges in the DeFi trading space.
With support for up to 150x leverage on cryptocurrencies and stocks and up to 1000x on forex, it offers unparalleled leverage options. Moreover, its multi-chain approach, starting with Polygon and Arbitrum, makes it a versatile choice for traders.
How Gains Network Works
Understanding the inner workings of Gains Network requires diving deep into its unique trading mechanics and the dual utilization of DAI and GNS tokens. Let's break it down:
Trading Mechanics
Gains Network operates on a synthetic asset system. This means that all the assets traded on the platform are represented as synthetic assets. When a trader wishes to execute a trade, they deposit DAI into the platform's DAI vault. The trader can then go long or short on various assets, such as cryptocurrencies, large-cap U.S. stocks, and major currency pairs, with up to 150x leverage on crypto and stocks and 1000x on forex.
Role of DAI and GNS Tokens
The entire platform operates on DAI and its native token, GNS. DAI is the primary collateral and liquidity pool, while GNS tokens function as the utility token that powers the platform's unique tokenomics.
One of the standout features of Gains Network is its token burning and minting mechanism. The DAI vault retains the trader's deposit when a trader loses a trade and gets liquidated.
This increases the amount of DAI in the vault. Once the DAI amount surpasses a specific threshold, the excess DAI repurchases GNS tokens from the GNS/DAI pool. These repurchased GNS tokens are then burned, creating deflationary pressure on the token.
Conversely, if a trader wins a trade, the profits are paid out from the DAI vault, which might involve minting new GNS tokens. This creates an interesting dynamic where the trading activity on the platform directly influences the value of GNS tokens.
By tying the fate of the GNS token to the trading outcomes, Gains Network creates a self-sustaining ecosystem where the token's value is closely aligned with the platform's overall success.
Gains Network's NFT Collection and Utility
Gains Network goes beyond mere trading; it also offers a collection of NFTs available on OpenSea. These aren't just collectibles; they offer tangible benefits to the platform's users. Owning a Gains Network NFT can amplify the yield of your liquidity funds or even reduce the trading spread. Each NFT is designed to offer a specific advantage, making them more than just digital art; they are functional assets within the Gains Network ecosystem.
Protection Against Whale Trades
Gains Network has implemented several precautionary measures to maintain platform stability and protect its vault. One such measure restricts any single trade from absorbing more than 1% of the total amount of DAI in the vault. At the time of writing, the DAI vault has 12 million DAI, meaning no trade can exceed 120k DAI. While this may limit the activities of large traders, or 'whales,' it ensures a balanced and stable trading environment for most users.
Where to buy $GNS?
You can find Gains Network (GNS) on Kassandra's DAPP. Whether you want to list GNS in your own pool or invest in existing pools, Kassandra offers you the flexibility and security you need.
Kassandra Finance also offers a multi-tokenized crypto asset pool known as the Arbitrum Derivatives tokenized crypto portfolio.
This pool exposes you to top-performing and promising crypto derivatives exchange protocols on the Arbitrum network, like $GNS, and experts from Kassandra manage these assets for you, removing the hassle of individual management.
Final Thoughts
Gains Network is not just another trading platform; it's a well-thought-out ecosystem designed to bring its users the best of decentralized finance. It has features like high leverage, low fees, synthetic asset trading, and unique NFTs. The platform's innovative approach to tokenomics, coupled with its user-centric features, positions it as a potential game-changer in the DeFi trading space.
Just remember, do your own research (DYOR) and good luck!
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