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CoinEx Research: GNS, the GMX Killer

2022-11-03 06:10:45

The prices of many cryptocurrencies have been slashed due to the lasting crypto market turmoil in 2022. Yet some projects have beaten the market. You must have seen GMX in the Binance Innovation Zone in early October, which has been soaring since this June from $13 to $56, a maximum growth of over 3,000%. Since we talk about GMX, Gains Network (GNS), the shiniest star at the end of 2022, must be mentioned. 

The two share many similarities in implementation mechanism, but GNS may be better and it stands a chance to surpass GMX.

GNS trade and traders' data

GNS Data   Source: Dune

What makes Gains Network (GNS) highly competitive?

1. Rich Features

gTrade is the first product developed by Gains Network, which is a decentralized derivatives trading platform built on Polygon. It offers 39 crypto pairs, 22 stocks, and 10 forex pairs. By contrast, GMX supports only 4 pairs in Arbitrum, which are way below enough and convenient for most users.

Though both are on-chain derivatives trading platforms, gTrade allows much higher leverage than GMX. The former offers traders up to 150x leverage on crypto assets, 100x on stocks, and 1,000x on forex trades, while the latter provides up to 30x leverage on crypto assets. Rich features and super high leverage may make gTrade a risk-hedging tool for many professional users.

gTrade platform


Like GMX, gTrade adopts the shared liquidity model. This means that leveraged trading on gTrade is a zero-sum game between LPs and users who create a long/short position. As asset prices on the platform are provided by the oracle machine, they would not affect spot trading.

2. Mature Economic Model

May 2022 is considered the "Darkest Hour" for the crypto market. The death spiral caused by UST decoupling resulted in the plummeting prices of UST and LUNA. However, this incident brought lucrative profits to many users who bet against LUNA. 

gTrade started to realize that its DAI Vault was somewhat risky. Previously, gTrade would burn GNS when DAI Collateralization Level, or the ratio of Vault Balance to Vault TVL, is greater than 110%, and mint GNS when the ratio is below 100%.

To avoid Death Spiral as many short-position users make profits after decoupling, gTrade has increased the ratio from 110% to 130% to keep the funds of the DAI Vault. In other words, GNS will only be burnt when the DAI Vault balance to DAI Vault TVL ratio is greater than 130%. To prevent LPs from suddenly withdrawing all their funds, the platform requires that the staked DAI can only be withdrawn at a max rate of 25% of the maximum holdings every 24 hours.

Here is a brief introduction to the DAI Vault. As gTrade adopts the shared liquidity model, LPs become the counterparty of users engaging in leveraged trading. In other words, when users make a profit, LPs suffer a loss, and the DAI Vault funds decrease, and vice versa. 

The current collateralization level stands at 108.33% according to Dune, and 25% of GNS have been burned according to the official website.

DAI Vault Collateralization Level

Data source: Dune

There are three other ways to mint GNS:

  1. Liquidity rewards from the GNS/DAI pool;
  2. Participation in the platform’s referral campaigns;
  3. Holding Gains NFT and trading on gTrade.

When certain GNS are minted, DAI of equivalent value will be saved to the vault. CoinEx data shows a total supply of 29.06 million. It is worth noting that Gains Network has also presented more interesting products, such as Gains NFT.

Gains Network data on CoinEx

As for the yield that users care about the most, in addition to coin price deflation, gTrade will also distribute part of the platform's revenue through DAI to those who have staked GNX as shown below:

the platform's revenue through DAI

A Gains Network Medium article indicates that 70% of all gTrade orders are market orders and 30% are limit orders. That is to say, stakers receive 32.5% of the platform's revenue.

Gains Network market orders and limit orders

Source: Gains Network Medium

3. A Surging Market

Gains Network has not yet seen a large number of investment institutions, so there is no possibility of a market crash when institutions dump the unlocked tokens. Meanwhile, there is little pressure on coin price growth. This could be a significant first-mover advantage for many investors. The number of daily active users has been growing stably and the growth even accelerated in the past week. According to Dune, the trade volume of Gains Network in the past 24 hours is $24,655,821.

Daily active users of Gains Network

Daily active users of Gains Network in the past 60 days Source: Footprint Analytics

Gains Network’s trade volume

Gains Network’s trade volume in the last 24 hours  Source: Dune

The bear market makes the derivatives trading platform a new track. According to CMC, the GNS price has soared nearly 30 times as compared to that on November 1, 2021, while the crypto market was going through an unprecedented downturn. This reflects the huge potential of the Gains Network.


Word has it that Gains Network will soon be live on Arbitrum. At the same time, the DAI Vault Collateralization level is approaching 130%, and GNS is likely to see deflation.

DAI Vault Collateralization level

Final Thoughts

Projects can be favored through good storytelling and hype in a bull market, but in a bear market, strength is all that matters. Gains Network is highly competitive with rich features, a secure economic model, and high real yields to users. In the near future, GNS is likely to replace GMX to become the leading derivatives trading platform. Wait no more and tap the CoinEx link ( to buy GNS now!

Disclaimer: The article is for reference only and does not constitute any investment advice. No investment decisions should be based on the information provided herein, and you take full responsibility for your own investment decisions.

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