Cryptocurrencies

Gains Network Introduces Leveraged On-Chain Stock Trading

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Written By: Michael Abadha
Reviewed By: Alejandro Zambrano
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    Summary:
  • Gains Network has introduced on-chain leveraged trading of stocks. What benefits should the platform’s users expect? We unpackage this.

Gains Network is now the first DeFi ecosystem to allow users to trade stock prices on-chain with leverage. The beta launch of leveraged stock price trading includes $AAPL, $GOOGLE, and $FB as the first three stocks supported. The platform will gradually add more stock over the next few weeks and months. Also, users will be able to take advantage of high leverage trading without paying any funding or borrowing fees.

What does it bring?

Gains Network uses Chainlink, a cutting-edge decentralized oracle network, to ensure that stock prices are always accurate. There is no price influence on trades, and the user is safe from scammers and scams, and the risk of liquidation is low as well. The price of US stocks will be open for trade for the first time on May 2nd, 2022, when the market opens at 9:30 a.m. Eastern Standard Time. On May 9th, the team will release a second set of 20 large US stocks, which have not yet been announced.

Gains Network Founder Sébastien stated, “We are delighted and honoured to be the project that takes DeFi a significant step further by being the first to offer synthetic leveraged trading on the spot price of US stocks.”

To achieve a significantly better level of liquidity efficiency than any of the competing platforms Gains Network uses synthetic leverage, which is not borrowed in any way from anywhere. With a unique synthetic leveraged trading architecture, it employs the $GNS utility token to run its trading platform. To execute trades on all of gTrade’s pairs, the ecosystem makes use of two liquidity pools.

It is advantageous to use this method because it eliminates the need for the protocol to create liquidity for each pair. An all-time trading volume of more than $11 billion has gone through gTrade. When these popular US equities eventually become available to all consumers, that number will likely rise significantly.

About Gains Network

Gains network is best known as the creator of the decentralized leveraged trading platform, gTrade. It is based on the Polygon distributed ledger technology. Therefore, this improves transaction speeds and lowers transaction costs for Ethereum-compliant blockchains and DeFi apps. GNS tokens are the network’s native currency.

Because of its attractive incentives, Gains Network has developed a competitive business model, leading to its rapid growth. For example, the network now has the biggest leverage for crypto trading, with a maximum of 150X available. Additionally, it supports forex trading, which is rare for a crypto platform.

This post was last modified on May 03, 2022, 14:14 BST 14:14

Written By: Michael Abadha
Reviewed By: Alejandro Zambrano

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha
Reviewed By: Alejandro Zambrano