Gains Network
DAI Vault
The stable vault ensures a seamless trading experience for users, gives stability to the system and amplifies our capital efficiency by an order of magnitude.

What does the vault do and how?

The vault is the smart contract where the DAI from negative PnL trades goes to and where the DAI to pay out traders comes from. Anybody can stake DAI in the vault and earn DAI rewards from fees based on the platform's volume. Stakers in the vault are rewarded highly as they bear risk associated with platform function, that is they risk wearing the loss if the vault became under collateralised and did not return to sufficient collateralisation. Since commencing in December 2021 and experiencing a wide variety of market conditions - no DAI staker has ever left at a loss.
Vault Balance = Staked DAI Value + Platform PnL
Vault Collateralisation % = (Staked DAI Value + Platform PnL) / Staked DAI Value * 100
The staked DAI can only be withdrawn at a max rate of 25% of your maximum holdings (from the last time you staked) every 24h. This means if you have 1000 DAI in the vault, you can withdraw 250 DAI every 24 hours and will have withdrawn the entirety after 4 days.
The vault will always aim at staying over-collaterised. At present this is set to 30%. If the vault is more than 30% over-collaterised because the vault is in sufficient profit, the vault will use the extra DAI to market buy GNS and burn it.
Previously the vault would mint and sell GNS into the LP in order to re-collateralise it. This was recognised to be inefficient in extreme market conditions. Since then multiple updates have been made to further ensure the safety of funds within the vault, the largest being the increase of the collateralisation ratio, and the fact that the DAI collaterals from open trades now don't go to the vault anymore (only the negative PnL does).
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