The decentralized finance (DeFi) ecosystem is leading a revolution in the finance industry, which requires a hub of offerings that reflects what users and investors can currently find in legacy finance. Gains Network, a full-suite DeFi protocol, is bringing these solutions to DeFi through the launch of the first-ever leveraged trading platform for US stock prices in DeFi.
Announced on May 3rd, 2022, Gains Network is introducing on-chain leveraged trading of US stocks on its decentralized trading platform, gTrade, adding to the multitude of crypto assets already offered. The team will launch a Mainnet version of the leveraged on-chain with three top US stocks (i.e. $FB, $GOOG, and $AAPL) to be added. More US stocks will be added once the mainnet is launched in the coming weeks.
"We are delighted and honoured 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,” Gains Network Founder Sébastien said.
gTrade introduces synthetic trading of US stock prices
Gains Network enhances the appeal of DeFi by letting users trade the price of stocks on-chain with leverage. This aims to boost overall liquidity in the Polygon network DeFi ecosystem while increasing the appeal of DeFi products globally.
The gTrade platform will implement an innovative synthetic leveraged trading architecture that is powered by the platform’s native token, $GNS. Similar to its current model, gTrade will extend its two exclusive liquidity pools to the leveraged stock price traders, which allow traders to execute trades smoothly for any listed pair on the platform. This aims to benefit the traders with higher liquidity as the protocol does not have to build single liquidity pools for every listed asset pair.
On gTrade, traders do not borrow leverage (the actual assets) but rather employ a synthetic model. This synthetic model unlocks a much higher degree of liquidity efficiency, enabling the platform to stay on top of the competition. Notwithstanding, the platform has carried out several independent audits by CertiK to ensure the platform remains secure and safe from all external and internal hacks.
A bright future for gTrade?
Since its launch, gTrade has been a top DeFi platform in offering decentralized leverage trading on multiple assets, with high leverage of up to 150x. Adding to its high liquidity and airtight security, gTrade has witnessed massive user adoption, recording over $11 billion in all-time trading volume. The addition of on-chain stock price trading to the trading platform marks another crucial milestone, with users expected to flock to the site to leverage trade US stocks on a decentralized platform.
The platform aims to offer a superior user experience to centralized and decentralized exchanges. The platform removes all the funding and borrowing fees, offers high leverage, and maintains a real-time price list via its link to Chainlink’s decentralized oracles. Furthermore, there are no scam wicks, reduced liquidation risk, and no price impact on trades.
In the near future, gTrade APIs will support virtually all significant U.S stock prices, offering users more trading options. Notwithstanding, the platform aims to have all significant publicly-traded stock prices on its leverage price trading platform.
Finally, the trading on the Mainnet for the three US stock prices is already live with the second batch of 20 big US stocks set to be added in the coming week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice