What is Gains Network (gTrade)?
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🟢 The simple version
Plain English — no jargon. Start here.
Gains Network operates gTrade — a decentralised leveraged trading platform on Polygon and Arbitrum where traders can access up to 150× leverage on crypto, forex, and stock indices using a synthetic model backed by a single DAI vault, with Chainlink oracles providing prices and the GNS token serving as the protocol's backstop liquidity.
gTrade — what makes it distinctive
gTrade (Gains Trade) differs from GMX and dYdX in two important ways. First, gTrade uses a purely synthetic model — there are no actual tokens in the trading pool. When a trader opens a leveraged BTC/USD position, no BTC is bought or sold. The protocol simply tracks the position's value against Chainlink's BTC/USD price feed. This eliminates the liquidity depth problem: gTrade can offer any leverage on any Chainlink-supported asset without needing actual token liquidity. Second, gTrade supports forex and stock trading — EUR/USD, GBP/USD, gold, individual stocks — assets where DeFi has very limited alternatives.
gTrade launched on Polygon in 2021 and expanded to Arbitrum. Despite running on smaller chains than GMX (which uses Arbitrum's largest DeFi ecosystem), gTrade developed a loyal following among traders who valued the forex and stock market access.
The DAI vault — the counterparty
The gDAI vault (formerly the DAI vault) is the single liquidity pool backing all gTrade positions. Liquidity providers deposit DAI into the vault and earn trading fees. The vault is the counterparty to all trades — it pays winning traders and receives from losing traders. A single vault covering all markets (crypto, forex, stocks) provides diversification: a strong crypto bull market (which might make crypto positions profitable) often correlates with a stronger USD (which benefits forex positions for USD-short traders). This cross-market diversification reduces the vault's net risk.
What GNS does
GNS is the governance token and backstop liquidity. If the gDAI vault is insufficient to cover winning positions, GNS is minted and sold to cover the shortfall. Conversely, when the vault is over-capitalised (more collateral than needed), protocol revenue buys and burns GNS. Total supply: ~31 million GNS (relatively small).
Is it legal in India?
Yes. GNS is a VDA under Indian law. 30% tax and 1% TDS apply. See India regulation.
🟡 A bit more detail
For when you want to go a little deeper.
The synthetic model — advantages and risks
gTrade's synthetic model provides unlimited theoretical liquidity depth — a $10 million BTC position has the same slippage as a $10,000 position because no actual BTC is traded. This is the primary advantage over GMX's model (where large positions face pool slippage). The risk: if Chainlink prices are manipulated or the protocol's oracle safeguards fail, large synthetic profits could drain the DAI vault. gTrade mitigates this with: maximum position size limits (caps on total open interest per asset), spread mechanisms (prices slightly worse than Chainlink for traders, protecting the vault), and rollover fees (positions pay a fee that increases with time and size, discouraging large long-term leveraged positions).
gTrade is used by traders who want DeFi access to forex and traditional financial markets. The EUR/USD, GBP/JPY, and gold markets on gTrade serve traders who want synthetic forex exposure without a CEX account. High-leverage crypto trading (up to 150× on BTC/USD) attracts traders who find GMX's and dYdX's leverage limits insufficient. The gDAI vault has attracted DAI holders seeking yield from trading fees with less directional crypto exposure than GMX's GLP (which holds crypto assets). Several structured trading strategies use gTrade for hedging purposes.
GNS tokenomics — the backstop model
GNS's relationship with the vault is unique. When the vault is underfunded (vault collateral ratio below a threshold), the protocol mints new GNS and sells it for DAI to recapitalise the vault. When the vault is overfunded (above a target collateral ratio), excess vault fees buy and burn GNS. This creates a two-way economic relationship: GNS is diluted in bad times (vault losses) and deflationary in good times (vault profits). The long-term expectation is that traders are net losers (as with most leveraged trading venues), making the vault profitable and GNS deflationary over time.
Key gTrade metrics: total open interest, vault collateral ratio (above 130% = healthy), DAI vault APY, GNS burn rate vs minting rate (net deflation = healthy vault), and forex/stock trading volume (unique gTrade use case). gTrade's key competitive advantage — forex and stock exposure — is also its key distinction from GMX and Hyperliquid. Live data: CoinGecko · Gains.trade.
🟣 The full technical picture
For the technically curious.
Oracle integration and trade execution mechanics
gTrade uses Chainlink Data Streams for trade execution — a low-latency off-chain data feed that provides faster price updates than standard Chainlink price feeds. When a trader opens a position, they submit an order that is pending until the next Chainlink price update confirms the execution price. This prevents frontrunning: traders cannot know the exact execution price before submitting. The spread (difference between Chainlink price and execution price) is the vault's protection against adverse selection — if a trader submits a market order just before a large price move, the spread ensures the vault receives fair compensation for the increased risk.
Source: Gains Network documentation. gains-network.gitbook.io · Gains Network GitHub: github.com/GainsNetwork-org
Limit orders and SL/TP execution
gTrade supports limit orders, stop-loss, and take-profit for leveraged positions. These are implemented using "trigger orders" — bots (any EOA can operate a trigger bot) monitor open orders and submit execution transactions when the Chainlink price hits the trigger price. Successful trigger bots earn a small fee per execution. This decentralised keeper model means SL/TP execution is reliable even during high volatility — a large network of bots competes to execute triggered orders, providing rapid execution without a central order execution service. Trigger bots earn from the execution fee, not from the trader's position — eliminating the incentive to delay execution.
gTrade's borrowing fee model charges traders a "rollover fee" based on: position size, leverage, and the vault's current collateral ratio. The formula: rollover_fee = position_size × leverage × (vault_fee_rate × time_open). The vault_fee_rate increases when the vault's collateral ratio is low (fewer reserves = higher risk = higher fee to disincentivise large positions). When collateral ratio is above target, rates decrease. This dynamic fee creates a market mechanism: when traders are collectively profitable (draining the vault), fees automatically increase to reduce position sizes and restore balance. The inverse also holds: when the vault is overcapitalised, fees drop, incentivising more trading activity.
Key facts
- Type: Synthetic leveraged trading DEX (up to 150× leverage)
- Assets: Crypto, forex, stock indices (Chainlink-supported)
- Chains: Polygon + Arbitrum
- Vault: gDAI (single DAI vault, cross-market diversification)
- Backstop: GNS minting/burning based on vault health
- GNS supply: ~31 million (small)
- Oracle: Chainlink Data Streams