The decentralized financial (DeFi) ecosystem will introduce leverage of US stock prices through the gTrade trading platform.
Gains Network, a full-fledged DeFi ecosystem, is launching its beta version of on-chain leveraged trading of US stock prices on gTrade, a decentralized trading platform. The beta launch will begin with three US-listed stocks, $AAPL, $GOOG and $FB, a statement from the Gains Network team said. After a successful beta testnet period, more US stocks will be added to the platform.
Announced on Tuesday, May 3, the launch of U.S. stock quotes trading with leverage will allow users to trade stock prices across the chain with leverage of up to 150x. This is intended to increase the liquidity of decentralized trading while marking a critical milestone in the DeFi space as the first-ever leveraged DeFi trading platform for publicly traded stocks.
“We are excited and honored to be the project that takes DeFi a significant step forward by being the first to offer synthetic leveraged trading at the spot price of US stocks,” said Sébastien, founder of Gains Network. “Use cases are getting closer and closer to what TradFi offers, and the user experience is finally reaching acceptable levels for mass adoption. It really is the most exciting time to be in DeFi.”
Built on Polygon, the Gains Network offers an innovative full DeFi ecosystem including rewards through its deflationary token, $GNS, deeply integrated non-fungible tokens (NFTs), stake pools that provide value and high returns, and decentralized leveraged trading through the gTrade platform.
According to the team, the latest launch of leveraged trading of stock prices will provide users with advanced technology, an easy-to-use UI/UX, high leverage and a superior user experience. First, there are no financing or borrowing costs, allowing users to maximize their profits. Second, users get high leverage of up to 150x, which is also offered on crypto assets on gTrade. Finally, the platform has integrated Chainlink’s decentralized oracles to provide real-time and reliable stock quotes to the platform.
To ensure smooth trading and increased liquidity, gTrade uses an innovative synthetic leveraged trading architecture powered by the $GNS utility token. The platform has two liquidity pools that help execute trades for all assets listed on gTrade, reducing the need to build a liquidity pool for each pair. The leverage provided to traders on the platform is synthetic, which unlocks a much higher degree of liquidity efficiency. In addition, the platform ensures reduced liquidation risk, no scams and no price effects on the trades.
In the coming weeks and months, gTrade will add support for virtually all US-listed stocks, making the platform accessible to more users. All major publicly traded stocks will be listed in the future and available for leveraged price trading.
Leveraged trading of the three leading US stocks on gTrade ($GOOG, $AAPL and $FB) went live on May 2, 2022 at market opening. The platform aims to launch the second batch, which includes 20 major US stock quotes, on May 9, 2022, one week from today.