Gains Network becomes the world’s first DeFi ecosystem to provide leveraged on-chain stock price trading
The growth of Web3 since 2021 has led to the rapid adoption of decentralized finance (DeFi), which facilitates transactions between individuals without bank or government involvement. The popularity of DeFi has also accelerated the need for investors and venture capital firms to trade equity in an open market.
That’s where Gains Network comes in. Gains Network is a decentralized leveraged trading platform to let investors trade cryptos and forex with up to 150x leverage on crypto and 1000x on forex. Gains Network enhances the appeal of DeFi by letting users trade the price of stocks on-chain with leverage. It marks a significant milestone for decentralized finance and will increase the industry’s appeal globally.
Today, gTrade announced it has become the first crypto derivatives platform to enable leveraged trading on the price of stocks. The first three stocks supported on the gTrade platform include $AAPL, $GOOGLE, and $FB. The leveraged stock price trading is a beta launch to ensure everything works as intended. More stocks will roll out gradually over the coming weeks and months.
Trading stocks on-chain with leverage comes with the same superior user experience gTrade has provided since its inception. There are no funding or borrowing fees, users can experience high leverage, and the stock’s spot prices will be accurate with the help of a cutting-edge Chainlink decentralized oracle network. Furthermore, there are no scam wicks, reduced liquidation risk, and no price impact on trades.
Gains Network uses an innovative synthetic leveraged trading architecture powered by the $GNS utility token. The ecosystem uses two liquidity pools to execute trades for all pairs listed on gTrade. The benefit of this approach is that the protocol doesn’t have to build liquidity for every pair.
It is also worth noting the leverage isn’t borrowed but rather synthetic in nature, unlocking a much higher degree of liquidity efficiency than any decentralized or centralized competitor.
In a statement, Gains Network Founder Sébastien said: “We are delighted and honored 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. Use cases are getting closer to what TradFi offers, and the user experience is finally reaching acceptable levels for mass adoption. It truly is the most exciting time to be in DeFi.”
The trading of the price of US stocks will go live on May 2nd, 2022, as the market opens at 9:30 AM EST. One week later, on May 9th, the team will list a second batch of 20 big US stocks, which have yet to be revealed.
The gTrade APIs support virtually all US-listed stocks, providing the team with many listing options. Eventually, the team aims to have nearly all significant US stocks listed on the platform and available for leveraged price trading.
The addition of on-chain stocks price trading to the gTrade platform marks another crucial milestone for decentralized finance on Polygon. gTrade has an all-time volume of over $11 billion, a number that will strongly increase once these popular US stocks are available to all users.
Gains Network is building an innovative DeFi ecosystem of products. With its gTrade platform, it aims to bring liquidity-efficient decentralized leveraged trading to the masses.