Gains NetworkPrice

(GNS)

Unlike many tokens with a fixed supply, GNS is deflationary based on platform performance. When the collateral vaults, such as the DAI/USDC ones, are over-collateralized (typically exceeding 110%), the surplus funds are utilized to acquire GNS from the open market and subsequently remove it from circulation through burning. Conversely, in rare instances of under-collateralization, GNS can be minted to reinforce the vault's backing, though this is an infrequent occurrence.

While GNS technically has a 'soft cap' of 100 million tokens, its supply is not fixed and fluctuates due to a unique mint/burn mechanism. The protocol actively burns tokens during periods of strong platform performance and trader losses, which means the circulating supply is often significantly lower than the soft cap. This design allows for dynamic adjustment based on platform activity rather than a static upper limit.

gTrade leverages a synthetic architecture, meaning it doesn't require separate liquidity pools for each trading pair. Instead, all trades are backed by a single, unified collateral vault, such as the gDAI vault. The platform relies on a robust oracle network, specifically Chainlink, to track real-time asset prices, rather than using an order book. This innovative approach enables it to provide exceptionally high leverage, including 1000x on Forex, without the significant slippage often encountered on similar decentralized exchanges.

'Scam wicks' refer to abrupt, unusual price fluctuations often seen on some centralized trading platforms, which can unfairly liquidate traders. Gains Network mitigates this risk by employing a custom Chainlink Decentralized Oracle Network (DON). This advanced system aggregates price data from numerous reputable sources, effectively filtering out any isolated manipulation or artificial spikes from a single exchange. This ensures that the prices used for liquidations and trade execution are robust and reliable.

The rewards distributed to GNS stakers are generated directly from the operational activities of the platform. Specifically, a percentage of every opening and closing fee incurred on gTrade is allocated for this purpose. These collected fees are then converted into the designated reward currency, which can be either DAI or GNS, and subsequently distributed to all eligible participants who have staked their tokens.

The platform is designed with safeguards to protect the collateral vault from large winning trades. gTrade implements specific limits, including maximum profit caps (typically set at 900% per trade) and open interest limits for each trading pair. These measures are crucial in preventing any single highly profitable trade, even by a 'whale' (a large trader), from significantly depleting or bankrupting the underlying collateral vault.