Crypto derivatives trading is among the fastest-growing financial areas of the decentralized finance (DeFi) ecosystem. However, the current crypto derivatives market is mainly limited to blockchain-backed derivatives, primarily because few on-chain synthetic assets or other similar tools can mirror the performance of off-chain assets.
Addressing this ecosystem deficit and adding a new investment opportunity for DeFi aficionados, Gains Network, the Polygon-based decentralized leveraged trading platform, has rolled out a new line of products that allows users to trade the price of stocks on-chain with leverage.
Per the latest development, Gains Network’s gTrade is now the first crypto derivatives platform to offer leveraged trading based on the prices of real-world stocks.
The addition of on-chain stock price trading marks a turning point for the Polygon network, and the broader DeFi ecosystem. At present, the leveraged stock price trading feature has been rolled out as a beta launch to ensure everything works as intended. Once the results from the beta launch are compiled, gTrade will continue adding more real-world stocks.
Apple (AAPL), Alphabet (GOOGL), and Meta (FB) on-chain stocks went live on gTrade on May 2, as the real-world stock market opened at 9:30 a.m. EST. Eventually, the team will add a second batch of 20 more U.S. stocks on May 9, which are yet to be revealed.
Users will gain access to high leverage without funding or borrowing fees. Additionally, by leveraging the Chainlink decentralized oracle network, gTrade will ensure that the listed stock’s spot prices are accurate and updated in real-time, while at the same time reducing scam wicks, liquidation risks, and price impacts when trading.
Gains Network employs a novel synthetic leveraged trading infrastructure powered by the platform-native $GNS utility token. As a result, the ecosystem utilizes two liquidity pools to execute all trades on the gTrade platform, eliminating the need for the underlying protocol to build liquidity for every trading pair.
Commenting on the introduction of the first-ever leveraged on-chain stock price trading feature, Gains Networks founder noted, “We are delighted and honored 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. It truly is the most exciting time to be in DeFi.”
With gTrade, traders can already engage in leveraged trading of median spot prices with 0% funding fees and 0% price impact — all made possible by its unique asset-agnostic synthetic trading architecture fueled by the minting and burning of its native $GNS token.
The platform currently offers 43 cryptocurrencies with 5:1 to 150:1 leverage and 10 major foreign exchange pairs with up to 1000:1 leverage.
Additionally, gTrade APIs support almost all U.S.-listed stocks, thereby granting the team the strategic advantage to introduce more tickers for leveraged on-chain stock price trading.
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