Gains Network: Exclusive interview with the DeFi challenger to leveraged trading

Rick Steves

Gains Network has emerged as a challenger within the leveraged trading industry with the launch of gTrade, a platform offering up to 150x leverage on cryptos and stocks, and up to 1000x on forex.

gTrade is not the typical trading platform. It was built on the Polygon blockchain and uses oracle network Chainlink to power its decentralized leveraged trading. Only the leverage is synthetic. 

All of this is pretty much new to anyone who’s been trading for the past years or decades, and used to more traditional derivatives products such as CFDs, Futures, or Options. 

Finance Feeds has previously covered their launch of leveraged stock price trading. Now, we had the opportunity to interview a spokesperson for Gains Network in order to learn more about the project as the DeFi niche continues to grow, unregulated, but attractive to players looking for low cost access to extremely high leverage and “infinite liquidity”. 

Synthetic leveraged trading comes as both interesting and scary for industry participants learning about DeFi. What are some of the common misconceptions about your product?

Some common misconceptions:
It’s unsustainable because there is no real trading of assets.
That’s some sort of gambling because of the leverage.

“Infinite liquidity” is surely a feature that brings much attention to your platform. How does synthetic leverage work behind the scenes?
We have a token $GNS which is burnt or minted depending on how collateralized our stablecoin vault is. When traders lose, $GNS is burnt and leads to deflation. Since trades don’t involve swapping or borrowing the underlying, synthetic leverage allows for high leverage, no funding fees and trading any asset (crypto, forex, stocks, commodities, etc…)

In what jurisdictions are you allowed to operate and what are the expansion plans? Do the regulatory frameworks stand in the way?
Since synthetic leverage doesn’t involve tokenizes stocks, commodities or swapping of cryptos it’s not subjected to regulations. We do not break any laws.

What is the future of the derivatives trading industry?
In traditional markets, derivatives markets in Traditional finance are around 10x bigger than the world’s GDP. In crypto, spot trading is higher than on-chain derivatives because the space is still super young and thus there is a lot of room for growth.

Why did you choose to build gTrade on Polygon?
We chose Polygon because transactions are super cheap (around 30x cheaper than on Binance Smart Chain) and block times are 2s which allow users to trade small amounts like 10$ and trades will execute very fast.

What is the offering currently available on the platform and what’s next for gTrade and Gains Network?

Right now users can trade cryptos and stocks up to 150x leverage and forex up to 1000x leverage. We are currently processing $180M daily volume. Next things coming are a single asset staking pool where platform fees will go to $GNS stakers, we’ll launch on another chain and add more assets to trade.

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