Gains Network Profile, Review and Rating
Gains Network
Ranking system from A - F
Metrics:
https://dune.com/unionepro/Everthing-Gains-Network
Metrics
market cap: 55m
Trading Volume: 1.2m
Total Diluted Value: 194m
TVL: $18.28m
Circulating supply: 28.6m
Total Supply: 28.6m
Max Supply: 100m
Trade volume on platform ~26m
daily trading volume.
170 users daily.
Adds about 10-17 new users a day.
Total fees generated: $12.13m
Slightly inflationary BUT with a small amount of demand, token can be deflationary.
decent rates on the pools
Use Case
DECENTRALIZED TRADING PLATFORM
Offers leverage up to 150x
Will Offer large selection of assets to trade including stocks and forex
REAL YIELD
🧑🏻💻 Team and Technology
Rating: B
Platform
Really nice looking platform with smooth operation
Looks a lot like a centralized exchange
Nothing groundbreaking.
🪙 Tokenomics
Rating: A
GNS
governance
Utility
real yield staking
likely deflationary over time.
Started off as GFARM2 token on Ethereum fairly distributed
10% of tokenomics went to the team ❤. This is a very low amount which is great.
Bridged to Polygon with a 1:1000 split to GNS
Inflation routes:
GNS/DAI pool rewards
NFT bot rewards
Burn:
When DAI vault becomes overcollateralized more than 130%, the extra GNS is burned
Over 20% of the supply has already been burned. ~25% in the past year.
🏙️ Ecosystem
Rating: A
Polygon L2. Will benefit from The Merge. Its my belief that L2s are currently the best places to have a protocol.
🚫 Major Risk
Rating: C
US government won’t want any decentralized stock trading apps
Europe is on the same path.
Security Risk low
Audits: Certik 87/100 skynet score
Security Reviews
📈 Growth Potential
Rating; B
DeFi 2.0 could be one of the major catalyst to get us out of the bear cycle. DeFi 1.0 was want got us out last cycle.
Great product with GOOD use case.
💎 Uniqueness
Rating: C
Not unique for the most part but its product is well designed compared to competitors.
➕Price Upside
Rating: B
Current price: 1.85
High: 4.92 in Jan 2022
I can see this quickly reaching its highs when the crypto market begins turning bullish. It will benefit from the merge in Sept, which I believe will make Ethereum ecosystem PLUS layers two begin to climb slowly over time such as the stock market.
Prediction:
The price isn’t really to far from its former highs albiet macro market conditions will dictate where price ultimately goes in the short term.
When market turns bullish.
Quickly reaches its highs ( ~5.00)
Within the next 2 years
GMX has a market cap of 415m while GAINS has a MC of 55m. They are similar products and in some ways GAINS is better (variety of assets traded, leverage flexibility, platform)
I can see GAINS reaching a similar MC in the next two years. That would put GAINS at nearly $14. If there’s less tokens (from burning) this could be considerably higher. $20+ range.
Minimum 5-10x IF metrics continue to improve ($10 - $20)
Competition
Rating: C
Derivates is a competitive space with any competitors. Although, the traditional market has $1 quadrillion dollars worth of derivates VS $150T in equities.
GMX
MYCELIUM
Synthetix
Disruption
Rating: C
Disrupting centralized exchanges perp trading which account for the largest volume of trading in market.
Conclusion
Tokenomics and real yield are the best aspects of this project. A token holder would benefit greatly if the protocol begin to incorporate even a modest amount of new users.
Project has lots of competition but does offer something unique (platform). Although, I wouldn’t say its more technologically advanced than the competitors
I really like almost everything about this project but its does have ONE major risk. If the protocol begins trading stocks and forex, I believe the SEC could begin to take notice. Just like they came after Mirror Protocol, they can come after Gains Network. I would like to see user metrics increase over time which I predict could happen in a better market.
I’d place a BUY rating on GNS because it check almost all the boxes. The risk/reward ratio is worth taking the risk. The risk is ALL OF THE CAPITAL to make things clear, which is the case for most small-cap cryptocurrencies. But the upside price potential is greater than $20 in a healthy market (market is still in winter now).
Downsides
Need user metrics to improve.
Regulation risk is very high if they begin listing stocks.
Majority risk that the SEC will come after this project at some point if it begins trading stocks and forex. That is the biggest danger but the SEC may not be able to do anything. History has shown that the SEC has tools to shut down these types of projects.
HIGH RISK/HIGH REWARD $0 - $20+
Token only available on Quickswap and Uniswap.
Volatile price with ONLY ~4k token holders
Upside
REAL YEILD in DAI!
Revenue is about $1m a month. In a bullrun this could easily 5x IMO which would benefit token holders highly. (Extra burning + higher rewards paid out.)
Great upside price potential
Amazing tokenomics with deflationary causing measures.
No gimmicks. No LONG locks ups. (Reasonable: To remove tokens from pools you can take out 25% a day. In four days you can take out 100%.)
DeFi 2.0: These types of financial instruments are becoming trusted over time and users keep increasing.
Small marketcap
On Layer-2 which will benefit heavily from the Ethereum Merge.
When listed on major centralized exchanges, price can jump
Only 4,223 token holders which a majority are long term holders.