GNS

It is deflationary because leverage trading generally ends in massive losses. The DAI vault is just a new system which allows losses to increase the size of the DAI vault, and at 110% collateralization large amounts of GNS are bought back at market value.

Will not buy the coin but I love the DAI vault, keep it up. And I was about to pull out when yield went to 7%...

old.reddit.com/r/GainsNetwork/comments/r6izao/introduction_to_gains_network_for_traders_and/

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I bought in a week ago. Did something right this time, thank you biz.

The vault provides the payouts in DAI for traders on the gTrade platform. The aim is to keep the vault 110% collateralized, or 10% over collateralized. If the vault is more than 110% collateralized, GNS is market bought and burned. If the vault is less than 100% collateralized, GNS is market sold to fill the vault. The general idea is that most traders lose money, so over time the token should be deflationary.

Can a whale unwind and sell lp soon pls

So if a trader wins using 100000x leverage it will empty a shitload of DAI from the vault and the protocol will mint more GNS to buy more DAI, inflating and decreasing the token price, right? It's the only fud I can find.

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yep pretty much. there's limits in place so a single trade can't bankrupt the platform, but if a trader made hugely successful trades for months on end, you'd see a lot of GNS minted and sold. its just eeeextremely unlikely.

see historical stats here
dune.xyz/unionepro/Everthing-Gains-Network

Max leverage is only 150x. I understand the point you're trying to get across though.

If such an event happened it would actually be a really good buy opportunity since the odds are that all the GNS would get burned eventually by other traders losing money thus adding more collateral to the vault.

Another point are the legal implications. How legal is to make all those kinds of GAINS? I see they are trying to the most decentralized possible but I'm just trying to find any fud here.
Anyways, I'm fucking excited, wagmi.

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>only on polygon
>token is fundamentally worthless without fee accrual
The two biggest problems with GNS that need to be solved

Honestly I have no clue, it's definitely a legal grey area in some countries. If you look at the documentation, there is a roadmap for the medium term plan for the GNS ecosystem. Decentralizing the website backend is part of that, so theoretically it shouldn't matter? I'm not gonna pretend like I know the answer to this question though. I am sure if platforms like this were made illegal people would find a way to cash out anyways.

>the most decentralized possible
As with many projects, things are being built that cannot be taken down. I think the plan is to build shit and let the regulators figure it out.

i see gns like any stock. it gives me an in to the companies revenues. don't see why that'd be a problem.