Grant request by Gains Network

Submission Date

October 31, 2021

Project Links

twitter.com/GainsNetwork_io

discord.gg/Zj6Uub2wZ7

Project Description

Gains Network brings its liquidity-efficient decentralized leveraged trading architecture to Polygon.

Trade 36 cryptos with up to 150x leverage, and 10 major forex pairs with up to 1000x (on-chain execution).

Stocks, commodities, and indices are also coming soon.

Major innovations:

  • Simulation of the trading PnL by minting/burning the GNS token (asset-agnostic synthetic).
  • No funding fee (no capital borrowed for the leverage).
  • Support for any asset with any leverage.
  • 100% of the liquidity concentrated into a single GNS/DAI pool (no order books for each pair).
  • DAI only liquidity layer on top of the GNS/DAI liquidity for maximum capital-efficiency.
  • Collaterals only going through the liquidity (significantly less slippage).
  • First-of-its-kind on-demand Chainlink DON (decentralized oracle network).
  • Median spot prices only, no derived/generated price.

Tokenomics:

  • Utility token minted/burnt by the trading platform (necessary for the architecture).
  • Long-term deflationary pressure on the GNS supply from trading losses.
  • Significant share of the leveraged trading fees going to GNS/DAI liquidity providers.

Amount requested

750000 USD

Milestones

Precision: The DAI vault is as buffer between traders PnL and the GNS/DAI liquidity.

Since we mint and sell GNS tokens to pay for trading wins, we want to spread it over time to prevent an instant dump if lots of wins happen at the same time.

Therefore, traders are paid using this DAI vault which is then slowly refilled by minting and selling GNS instead of minting and selling GNS directly in the pool when a win happens (losses burn GNS tokens).

The GNS/DAI liquidity is also crucial to guarantee the DAI vault can always be refilled with as little price impact as possible but doesn’t need to scale much to allow bigger position sizes as we spread buying/selling pressure from trades over time.

However the DAI vault is needed to scale the position sizes allowed on the trading platform because traders are directly paid from it.

Current situation:

  • $10m avg daily volume
  • $3k max collateral
  • $2m GNS/DAI LPs
  • $200k DAI vault (team owned)

=> $250k budget to hit first milestone in 1 month.
=> $50k for DAI vault rewards in MATIC, $200k for trading incentives in MATIC

Milestone 1:

  • $30m+ daily trading volume for at least 10 days
  • $20k max collateral (function of DAI vault)
  • $2m GNS/DAI LPs (already done)
  • $2m DAI vault (everyone can stake)

=> $500k in MATIC, budget to hit milestone 2 in 1 month
=> $100k for DAI vault rewards in MATIC, $400k for trading incentives in MATIC

Milestone 2:

  • $100m+ daily trading volume for at least 10 days
  • $50k max collateral (function of DAI vault)
  • $4m GNS/DAI LPs
  • $5m DAI vault (everyone can stake)

During the whole process, we also kindly ask Polygon to support Gains Network marketing-wise (eg. tweets, AMA, announcements, etc.) as it is in both project’s interests to maximize the impact of this grant.

Thank you! Looking forward to your answer.

2 Likes

After short discussions with the team, we’re suggesting a modification of the grant as per the below.

  • Team is in contact with Polygon DeFi regarding their larger milestones and request.

For the suggested milestone we’re thinking the grant will be:

  • 15kUSD upfront payment to work with marketing, we suggest using our partners at CRE8R DAO and would happily connect the parties.

I have been in contact with the team and will move forward with this version

4 Likes

Grant Request Status

DAO Vote

2 Likes

Grant Request Status

Approved

1 Like

I am currently using this platform, and it is very easy to use and seems to have a solid need.
Keep up the good work.

2 Likes