🔎Overview
Learn everything about gTrade, the liquidity-efficient decentralized leveraged trading platform.
Summary
Trading experience:
Full custody of your funds -> no deposit or signup
Median spot prices -> no scamwicks
Guaranteed order execution -> zero slippage orders
Crypto, forex, and commodities available
High leverages available -> up to 150x on cryptos, 1000x on forex, 250x on commodities
Competitive fees
Transparent & decentralized -> 100% on-chain execution of trades
Top-notch user experience -> interface evolved with more than 3 years of user feedback
Trading engine:
No order books or liquidity for each pair -> gToken vaults for all trading pairs listed. -> 100x+ more capital efficient.
Synthetic leverage (not borrowed) -> up to 100x+ more capital efficient (depending on leverage used).
Real-time custom Chainlink decentralized oracle network (DON) -> real-time spot prices on-demand, on-chain. -> first oracle network of this kind on mainnet ever.
How does it work?
Trades are opened with $DAI, $USDC or $WETH collateral, regardless of the trading pair. The leverage is synthetic and backed by the respective gToken vault, and the $GNS token. Trader profit is taken from the vaults to pay the traders PnL (if positive), or receives trader losses from trades if their PnL was negative.
Powered by Chainlink
While all derivatives platforms generate their own prices through order books or similar models, which often ends up in prices that do not correspond to the real spot price of the asset, we use a custom real-time Chainlink node operators network to get the median price for each trading order.
A detailed explanation of how the DON (decentralized oracle network) works is available here.
Most accurate
The DON effectively filters out any outlier price action happening on a single exchange, whether done through manipulation purposes or simply from a lack of liquidity, allowing traders to rest at ease since they don't be liquidated because of a scamwick, for example.
It is worth noting that these are your trades. We cannot open, close, or edit any aspect of your open trades unless you have approved the smart contract to allow this by setting a stop loss or take profit, or if you are in a position which necessitates liquidation.
Please note that there is a function available to governance to pause the opening of new trades which is used when a contract is upgraded - but this would not close any traders open positions, all traders still retain control on closing their trades.
Finally, the trading engine is fully decentralized and users keep custody of the funds. We do not require any sign up or deposit to start trading.
Concrete example
As the gTrade architecture uses multiple price sources for every pair, the ETH/USD price only dipped down to $2,980.32 on a specific volatile movement.
Lets take a look at the price action on one of the best known centralized exchanges.
$2,977.62 was the bottom. This means one of your trades could have been liquidated on this exchange because it would have reached below your liquidation threshold, and your trade would not have remained open to later see profit.
The price difference between the Chainlink DON and the centralized exchange price is 0.09% in this case, which represents 13.5% PnL on 150x leverage. This example is an average one, as it often happens multiple times a week, and it is clearly enough to make a trading strategy unprofitable. There is also generally a bigger one once a month with sometimes 1% or more of difference compared to our fair median feed.
Not only that - but if you look at the liquidity, selling your position would've taken the price down further, which would have contributed to the so-called "scamwick" on this exchange.
Exceptional user experience
Due to the high liquidity efficiency of using a single liquidity pool per gToken vault for all orders executed on all pairs listed, we are able to offer the widest trading pairs and leverages offering.
We have also been improving the interface and listening to users' feedback for more than 3 years.
Competitive trading fees
The fees are distributed to the governance fund, gToken liquidity providers, $GNS staking, referrals, and to the network of oracle bots executing the limit orders in a decentralized manner.
You can read more about our fees here.
Liquidity efficiency
Since all trades use gToken liquidity layers (trading vault), we have a big advantage over other platforms who have to build new liquidity in their order books every time they list a new pair, and maintain high liquidity on each pair.
By building big gToken vaults (with trading fees incentives), every trading pair listed on our platform benefits from bigger position sizes. This means the platform only requires $DAI, $USDC or $WETH liquidity for ALL pairs that can be traded on the platform.
This is only possible because our architecture doesn't match buying/selling orders using an order book, and because the leverage of trades is "virtual". The PnL is calculated in our smart contracts and settled against the gToken vaults.
Current limitations
Limit of 3 open trades per trading pair per wallet. -> will be removed in the future
Maximum open interest (long/short) per pair and per group of correlated pairs. -> risk management for liquidity providers.
Winning percentage on each trade collateral capped at 900%. -> risk management for liquidity providers
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