Hop aboard the Gains Train. Part 12 of my deep dive research series will be on @GainsNetwork_io 🧵🍏 1/25

Let’s dive in… • $GNS • Price = $7.89 • Polygon & Arbitrum • Market cap = $235m – Rank 163 • All time high = $12.48 (-38.5%) • All time low= $0.265841 (2,788%) 2/25

gTrade is a decentralized leveraged trading platform that has been developed by Gains network. It allows you to trade with leverage on a wide range of pairs including • Crypto (150x) • Forex (1000x) • Stocks (50x) • Indices (35x) 3/25

The team have developed a unique synthetic architecture which allows gTrade to achieve. • Low trading fees • High capital efficiency • Full custody of your funds Here is a great thread by @RiddlerDeFi to get you up to speed with one of DeFi's fastest growing projects. 4/25 twitter.com/124061101668324966...

1. Revenue Gains comes in 14th overall for 7-day revenues and 4th amongst its perp competitors (dYdX, GMX, Synthetix). Over the last 24hrs numbers are … • Revenue = $118k • Fees = $148k Strong uptrend in fees & revenues since start of 2023. 9 for Revenue. 5/25

2. Treasury There are two main management wallets with the following funds • Gov fund: $3.83m • Dev fund: $11.23m • Total: $15.06m debank.com/profile/0x80fd0accC... debank.com/profile/0x211999e5e... 6/25

Majority of this is held in $GNS token with some $DAI and $ETH. This is a decent sized treasury relative to its mcap but a little concerning with lack of diversification. 8 for Treasury. 7/25

3. Tokenomics $GNS started life out initially as the $GFARM2 token on Ethereum, which was fairly distributed in an ETH pool and a GFARM2/ETH LP pool. The initial distribution was: • 5% - dev fund • 5% - gov fund • 90% - Distributed to ETH pool and GFARM2/ ETH LP 8/25

It was later bridged to Polygon, and had a 1:1000 split to $GNS. The whole ecosystem revolves around two types of tokens 1. $GNS – ERC20 Utility token 2. NFTs- ERC721 tokens 9/25

There are several purposes for these tokens • Revenue share of platform fees (Staking $GNS) • Burning of $GNS using platform revenue • NFT holders -reduced spread and boosted rewards 10/25

The protocol has an interesting mint and burn mechanism that so far has allowed organic deflation. • $GNS burned when DAI vault becomes sufficiently overcollateralized • $GNS minted to re-collateralize the gDAI vault (max inflation rate of 18.25% per year) 11/25

The tokenomics have been designed to ensure liquidity efficiency of the DAI vault whilst at the same time providing an equal playing field to the community and early supporters. 8.5 for tokenomics. 12/25

4. Locked up funds These are the current supply stats • Max supply = 100m (fail safe) • Initial supply = 38.5m • Circulating supply = 30.4m • Market cap = $235m • FDV = $235m • Market cap/ FDV = 1 13/25

The 100m hard cap of token supply is a failsafe and should not be reached due to the deflationary burning mechanisms. All tokens have been unlocked and over 70% are staked. Recently, Arbitrum staked % has overtaken Polygon. 9 for locked up funds. 14/25

5. Use case Traders can’t get enough of gTrade. With all metrics trending up and hitting ATHs over recent months. Total trade volume has hit just over $31b. Investors also love GNS due to the real yield it generates. Staking GNS you get DAI rewards from platform fees. 15/25

In total, stakers of GNS get • 40% of fees from market orders • 15% of fees from limit orders As 70% of trades are on market, this means 32.5% of fees from all orders on average will go to $GNS staking. You can boost rewards by staking the NFTs. 8.5 for Use case. 16/25

6. Roadmap According to their Medium article from Feb 2023, here are some of the focus areas for the next few months. • Improvement of NFT bot incentives • Lookbacks update (guaranteed price execution to all orders, take profits, stop losses, and liquidations) 17/25

Long term milestones for the team include Q4 2023: • $10 billion avg. daily trading volume • 10,000 daily active users • $500m TVL 8 for Roadmap. 18/25

7. Team & funding Seb is the anonymous founder of Gains network and he now has a team of around 13 people working to build the project. Most of the team are anon. Part of the long-term vision of Gains network is to becomes a DAO governed by the $GNS token (or $veGNS). 19/25

This would allow the project to further decentralise and allow development to scale horizontally- any team can create governance proposals to receive funding from the governance and create cutting-edge products that bring revenue to $GNS holders. 8 for Team & Funding. 20/25

8. Summary TLDR summary for each category’s score out of 10. 9 - Revenue – $118k daily revenue 8 - Treasury– $15m in gov & dev fund 8.5 - Tokenomics – Fixed supply, net deflationary 9 - Locked up funds – All tokens in circulation 21/25

8.5 - Use case – $31b trading volume, 12k+ traders 8 - Road map – NFT bots, Lookbacks update 8 – Team & funding – Anon team, fair launch TOTAL- 8.5 weighted avg. score You can view all my previous deep dive ratings for free below. docs.google.com/spreadsheets/d... 22/25

Gains has positioned themselves as one of the most popular decentralised trading platforms with excellent UI, good tokenomics and real yield incentives. The FTX collapse and blow up of centralised exchanges in 2022 has only fuelled the decentralised trading narrative. 23/25

The purpose of this thread is for education and research- not financial advice. Always DYOR before Apeing in. Here is a framework I prepared earlier. The current macro conditions are still very choppy so stay safe out there frens. 24/25 twitter.com/146697167738903757...

Tagging some accounts to follow for all the Gains alpha. @alpha_pls @rektdiomedes @ViktorDefi @rektfencer @ThorHartvigsen @Route2FI @drakeondigital @ArbiAlpha @CompleteDegen @Louround_ @danblocmates @Dynamo_Patrick @derpaderpederp 25/25

@alpha_pls @rektdiomedes @ViktorDefi @rektfencer @ThorHartvigsen @Route2FI @drakeondigital @ArbiAlpha @CompleteDegen @Louround_ @danblocmates @Dynamo_Patrick @derpaderpederp That's a wrap! If you enjoyed this thread: 1. Follow me @jake_pahor for more of these 2. RT the tweet below to share this thread with your audience twitter.com/146697167738903757...