1 year ago

OVERVIEW
Gains Network is a DEX that allows for up to 150x leveraged trading on crypto and up to 1000x on Forex. Similar to GMX, GNS token can be staked and stakers receive part of the fees as rewards.

THINGS I LIKE
GNS is pioneering the on-chain FOREX trading and Stocks trading. Half of the trading volume on the platform is already FOREX.
Total Value Locked has been steadily growing in the past 2 years. This will allow for bigger trades and less limits.
They claim they have burned about 20% of the GNS supply since inception. However, their dashboard shows 1% inflation currently. Still, 1% is very low compared to many other projects.
Offering up to 150x leverage on crypto is 3 times more than GMX and it will definitely attract more YOLO traders
All trades are collateralized by DAI, which is incredibly simplistic and unlocks the massive number of trading pairs that they have.
The trading fees are very comparable to centralized exchanges. This will help with the user adoption long-term.
The main network is Polygon, but they recently successfully launched trading also on Arbitrum.
Constant monthly updates from the team and clearly they are delivering developments almost monthly. Very positive sign in my opinion.

MY CONCERNS
Based on the targets that they have set for themselves, they are way behind the number of users (500 daily users) and TVL ($50m). Current numbers are around 300 users and $20m TVL.
Mostly retail
We are seeing a decline in active users in the past months. GMX also has a decline. It will be interesting to track this in the future. Is it because of the holiday season, or after the FTX FUD is gone, Perpetual DEXes will fall out of favor.
Total volume on the platform is lower in 2022 vs 2021.

This one, I’m not sure it’s a concern, but I’m going to put it out here. Staked GNS receives around 3% currently APY in DAI. Compared to GMX, that’s way lower. For me personally it’s not an incentive to stake the token. You can get a boost from owning an NFT, but these are also quite expensive. On the other hand, it’s also normal to have lower APY, since the trading fees are much lower compared to GMX.

FINAL THOUGHTS
GNS is like the little brother of GMX, which is trying much harder to be better than GMX. In many ways, I think it succeeds. Number of trading pairs, fees, overall trading experience is much better than GMX. However, we have not yet seen real volume coming into GNS. The token is also very low cap ($100m), with trading mainly on Uniswap. These last 2 points, can be an advantage, since it’s an early call on a good product, but it’s also a massive risk. Other than that, if you are into DEX trading, I definitely think you should give gTrade a go.

With all that said, I did add a really small starter position on GNS just to have skin in the game. This is an incentive for me to track how users and volume will develop in the future. I’m not going all in on this one, but I think the R:R long-term can be really favourable. This is a really high risk, high reward potential play.

RESOURCES
https://twitter.com/GainsNetwork_io/status/1607760008703348737
https://gains-network.gitbook.io/docs-home/what-is-gains-network/gfarm2-token
https://gains.trade/
https://dune.com/unionepro/Everthing-Gains-Network
https://medium.com/gains-network/long-term-roadmap-for-gtrade-18b2fa86ac38
https://twitter.com/DeFi_Dad/status/1609906834806083585
https://gainsnetwork-io.medium.com/
https://twitter.com/arbitrum/status/1594747078340915200

This video is for educational and informational purposes only.
I'm not a financial advisor.
Cryptocurrencies are high risk assets. Be aware of the risks before you decide to invest in any of them.
Do your own research and don't follow anyone blindly.

0:00 Intro
0:33 GNS Overview
3:38 Things I Like
12:48 My Concerns
22:22 My Plan & Price Prediction

#GNS

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