Gains Network has emerged as a leading force in the decentralized finance (DeFi) derivatives space, capturing significant attention for its high-performance trading platform and innovative protocol design. As DeFi continues to mature, derivatives—long dominant in traditional finance—are now seen as the next frontier. Despite being in early stages, the decentralized derivatives market holds immense growth potential, and Gains Network is at the forefront of this evolution.
With its flagship product gTrade, Gains Network offers one of the most powerful and user-friendly leveraged trading experiences across blockchain networks like Arbitrum and Polygon. It has rapidly climbed the ranks on platforms like DeFi Llama, currently ranking just behind industry giants DYDX and GMX in terms of derivatives trading volume. This meteoric rise is even more impressive considering the project nearly collapsed during the Luna crash—a testament to its resilience and strong product fundamentals.
Introducing gTrade: A High-Leverage Decentralized Trading Platform
At the core of Gains Network lies gTrade, a decentralized leveraged trading platform designed for efficiency, speed, and accessibility. Built with retail traders and active investors in mind, gTrade enables users to trade with:
- Up to 150x leverage on over 40 cryptocurrencies
- Up to 1,000x leverage on more than 20 forex pairs
- Up to 100x leverage on 30+ tokenized stocks
This makes it one of the highest-leverage DEXs available today—offering opportunities unmatched by most competitors.
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All trades are executed on-chain, ensuring transparency and security without sacrificing performance. The interface mimics centralized exchanges (CEXs), delivering a smooth, intuitive experience that lowers the barrier for new DeFi users.
To ensure accurate pricing and prevent manipulation, gTrade uses a custom real-time Chainlink Data Oracle Network (DON). This hybrid architecture pulls median values from multiple oracle nodes, minimizing risks like price "spikes" or single-point oracle failures—common vulnerabilities in other DeFi protocols.
Additionally, Gains Network features a dual-token system centered around GNS, its governance and utility token, and GNS NFTs, which unlock enhanced benefits such as reduced spreads, higher staking rewards, and automated limit order execution.
How to Use gTrade: Step-by-Step Guide
Getting started with gTrade is straightforward and familiar to anyone who's used a crypto exchange before.
- Connect Your Wallet
Use a Web3 wallet like MetaMask compatible with either Arbitrum or Polygon. - Deposit DAI
gTrade currently only accepts DAI as collateral. You’ll also need a small amount of ETH or MATIC (depending on network) to cover gas fees. - Approve the Contract
For your first deposit, approve the smart contract to access your DAI. Confirm the transaction on-chain. - Set Your Trade Parameters
Choose between market, limit, or stop-limit orders. Set your desired leverage, take-profit, and stop-loss levels. - Open and Monitor Positions
Once confirmed, your position appears in the open trades section. Track performance in real time.
The seamless UX, combined with robust risk management systems, makes gTrade ideal for both novice and experienced traders.
How Does Gains Network Work? Understanding the Protocol Mechanics
Gains Network operates using a synthetic asset model where traders take leveraged positions against a liquidity pool—similar in concept to GMX, but with key differences that enhance stability and user incentives.
The DAI Vault: Core of Stability
All trading on gTrade is backed by the DAI Vault, a central liquidity pool where users deposit DAI as collateral. This vault serves two critical functions:
- Acts as the counterparty to every trade (i.e., traders bet against the vault)
- Distributes fees and liquidation rewards to DAI stakers
Because most leveraged traders lose over time—especially under high volatility—the DAI Vault tends to generate consistent profits. Stakers benefit from this long-term statistical edge, earning yields derived from trader losses and trading fees.
To prevent sudden withdrawals from destabilizing the system, Gains Network enforces a rule: no user can withdraw more than 25% of their maximum single deposit within any 24-hour period. This dampens panic exits during market stress.
GNS/DAI Liquidity Pool & Tokenomics
The health of the protocol is tied to the GNS/DAI liquidity pool, which plays a crucial role in maintaining balance:
- When DAI Vault collateralization exceeds 130%, the protocol buys and burns GNS tokens—creating deflationary pressure.
- If collateralization drops below 100%, new GNS tokens are minted and sold for DAI to replenish the vault—potentially causing inflation.
This mechanism prioritizes protocol solvency over token price stability, protecting DAI stakers above all else.
GNS Staking Rewards
Holders of GNS earn passive income by staking their tokens:
- 40% of market order fees
- 15% of limit order fees
Given that ~70% of trades are market orders, this translates into an average distribution of ~32.5% of total fees to GNS stakers—making it a compelling yield opportunity.
Risk Management: A Multi-Layered Defense System
Gains Network implements sophisticated risk controls on both the trader side and liquidity provider (LP) side.
Trader-Side Controls
- Spread Fees: Increase with larger positions or lower liquidity assets, discouraging manipulation.
- Rollover Fees: Based on spot volatility; discourage excessive holding of high-risk positions.
- Funding Fees: Balance long/short ratios by charging dominant sides and rewarding the minority—preventing dangerous imbalances.
LP-Side Resilience (gDAI)
The DAI vault (gDAI) employs three layers of protection:
- Net asset value-based pricing (like GLP), not principal-protected
- Fee income and trader losses act as a financial buffer
- Dynamic lock-up incentives promote long-term commitment
These mechanisms have become so influential that projects like GMX and Synthetix Perps have adopted similar models in recent updates.
Evolution & Milestones: From Gains.farm to Gains Network
Originally launched as gains.farm, the project began several years ago with its own native token GFARM. After a critical vulnerability was exploited in early 2021, the team responded swiftly, launching V2 within 15 days.
Early struggles included low engagement—only 160 trades in the first three days of a trading competition—but relentless iteration paid off. Key turning points included:
- Replacing GFARM with DAI as collateral to eliminate manipulation risks
- Integrating Chainlink oracles for reliable pricing
- Launching NFT tiers to reward loyal users
- Expanding asset coverage and improving UX
In October 2021, the project rebranded to Gains Network, and GFARM was split 1,000x and renamed GNS. Since then, transaction volume and user growth have surged steadily.
Looking ahead, Gains Network plans to deploy on zk-rollups, further decentralize governance, and explore integration with metaverse ecosystems.
Competitive Landscape: Where Does Gains Network Stand?
As of recent data from analytics platforms like Token Terminal, Gains Network ranks among the top three decentralized perpetual exchanges—trailing only DYDX and GMX in trading volume and total value locked (TVL). It has decisively outpaced older players like Perpetual Protocol.
Its competitive advantages include:
- Highest leverage offerings in DeFi
- Superior oracle infrastructure
- Fast iteration cycle
- Strong community engagement
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Frequently Asked Questions (FAQ)
Q: What blockchain networks does gTrade support?
A: gTrade is available on Arbitrum and Polygon, leveraging their low fees and fast settlement times.
Q: Can I use any stablecoin besides DAI?
A: Currently, only DAI is accepted as collateral for opening leveraged positions.
Q: Is there a risk of losing money as a DAI staker?
A: While rare, extreme market conditions could lead to losses if trader wins exceed protocol buffers. However, built-in risk controls make this highly unlikely.
Q: How are GNS NFTs used?
A: They provide benefits like lower spreads, higher staking rewards, and priority access to certain features like automated order execution.
Q: Does Gains Network have a mobile app?
A: Not yet officially, but the web interface is fully responsive and works well on mobile browsers.
Q: Where can I buy GNS tokens?
A: GNS is listed on various decentralized and centralized exchanges. Always verify contract addresses when purchasing.
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Final Thoughts
Gains Network stands out in the crowded DeFi derivatives space through a combination of cutting-edge technology, thoughtful risk design, and relentless product improvement. With gTrade offering unparalleled leverage options and robust infrastructure powered by Chainlink oracles, it appeals to serious traders seeking performance without compromise.
While its tokenomics carry potential inflation risks under stress scenarios, the protocol’s focus on vault stability ensures user protection remains paramount. As DeFi continues evolving toward more complex financial instruments, Gains Network is well-positioned to remain a key player—and possibly a market leader—in the years ahead.
For those exploring high-leverage decentralized trading, understanding Gains Network is essential.