To start trading, users need a minimum of 50 USD in DAI and a small amount of MATIC or ETH for gas.

It is very easy for traders to get started with as little as 30 USD for trading US stocks, or around 50 USD for other markets such as crypto, even though the minimum capital required is 1,500 and 7,500 DAI, respectively. While this could mean an easier and more affordable exposure to the markets, it is also a strategy that carries the potential risk of rapid liquidation; i.e. a risky play that could very quickly lose all your invested collateral.

To wrap up, beware that using a minimal margin with maximum leverage can cause liquidation. Make sure that you understand the use of leverage correctly.

It is also essential to consider the DAI fee involved. For instance, gTrade charges a fee of 0.08%, which is comparatively higher than other platforms like Kwenta or Apollox, where the fees are 0.05% and 0.07%, respectively.

GNS Token Staking

With this strategy, users can stake their GNS in exchange for DAI rewards paid from platform fees. A total of 40% of fees generated from market orders and 15 % of fees from limit orders are allocated to GNS staking. As market orders account for 70% of the platform's trades, on average, 32.5% of fees from all orders will go towards GNS staking.

To further enhance staking rewards, users can stake up to three of the platform's NFTs. These NFTs provide additional boosts to a user's share of the staking rewards, depending on the NFT tier. The boosts for each NFT tier are as follows: Bronze - 2%, Silver - 3%, Gold - 5%, Platinum - 8%, and Diamond - 13%. By staking GNS and NFTs, users increase their chances of earning higher rewards from the platform.

Currently, the APY offered in the GNS staking pool goes up to around 6.27% on Polygon and 9.76% on Arbitrum.

The potential risk tied to staking GNS on the platform is that it may grant stakers significant decision-making power, influencing the direction of the platform's development. While this risk exists, it is important to note that it also contributes to the protocol's decentralization, which is a classic approach in DeFi to achieve distributed control. Staking GNS effectively turns stakers into owners of the protocol, and once Gains Network launches its governance system, GNS will become the governance token. In a situation where a large group of stakers with a specific agenda or interest unites and votes in a particular direction, they could potentially steer the platform away from the broader goals or interests of other users or stakeholders. Although this could create an imbalance of power and potentially jeopardize the platform's long-term sustainability and success, it is worth mentioning that this dynamic also fosters decentralization. By distributing decision-making power among stakers, the protocol becomes less reliant on a centralized authority, which is a core principle of DeFi.

Another potential risk is that staking rewards are not guaranteed and may fluctuate based on changes in the platform's fee structure or trading volume. While the current APY offered in the GNS staking pool is around 6.27% on Polygon and 9.76% on Arbitrum, these rates may vary over time and are subject to market conditions. Users should be aware of the risks involved in staking and carefully consider their investment strategies before committing to the platform.

gDAI Vault Staking

Since the “gDAI Vault” serves as the counterparty to all trades made on the platform, when traders win (positive PnL), their winnings are received from the vault, and vice versa.

In exchange, the vault receives a portion of trading fees, which are split among gDAI shares, incentivizing stakers to stay in the vault.

The collateralization of the vault depends on trader PnL. As long as the fees earned are greater than PnL payouts, stakers will earn a positive return.

When overall PnL is negative, the vault starts to create a buffer with those funds, further protecting stakers' funds and the protocol from future PnL abnormalities.

Currently, the APY offered in the GNS staking pool goes up to around 14.1% on Polygon and 19.5% on Arbitrum.

One potential risk of the “gDAI Vault” staking strategy is that stakers are essentially entrusting their funds to the “gDAI Vault”, which acts as the counterparty to all trades made on the platform. While the vault has measures in place to protect stakers' funds, such as creating a buffer with funds when overall PnL is negative and using the Epoch system to understand its collateralization ratio, there is always a risk that unforeseen events, such as having a very successful trader, could result in losses for the “gDAI Vault” and, therefore, for the stakers. Additionally, the length of the withdrawal lock period, which is determined by the collateralization ratio of the vault, could impact stakers' ability to quickly access their funds if needed.

Perpetual Trading

In general terms, perpetual trading is a type of trading with which traders can hold positions indefinitely, without an expiration date. It offers greater flexibility and liquidity, but also comes with risks that traders should be aware of. Chief among those is high volatility, which can lead to significant price swings in a short amount of time. This can cause traders to experience large losses or gains quickly, especially if they are using leverage. Additionally, perpetual trading relies on margin funding, which can be costly and risky if not managed properly. These are the two major risks associated with perpetual trading. Traders must therefore be skilled and experienced, practice risk management, and only trade with funds they can afford to lose.

Gains Network and its competitors like GMX and Kwenta are all decentralized trading platforms, each with their own unique features and limitations.

When it comes to the choice of asset pairs to trade and leverage, Gains Network seems to have the upper hand, offering 91 pairs to trade and up to 1,000x leverage. In comparison, Kwenta has only 23 assets to trade, and the trader can only use up to 25x leverage, while GMX has even fewer assets - just 4 to trade, and the trader can use up to 50x leverage.

In terms of earning rewards, GMX requires the trader to stake GMX and GLP tokens to earn rewards, while Gains Network only requires the trader to deposit DAI stablecoin.

In summary, while each platform has its own set of advantages and limitations, Gains Network provides the trader with a more extensive range of assets to trade and leverage options. It also offers a simpler way to earn rewards by only requiring a deposit of DAI.

Gains Network offers a range of attractive features for traders, such as a user-friendly, decentralized platform with a variety of asset pairs to trade and high leverage options. Additionally, the platform offers an easy way to earn rewards through staking GNS and NFTs. However, it's important to consider the risks involved with these strategies, such as the potential for rapid liquidation with minimum capital requirements, and the risks associated with entrusting funds to the “gDAI Vault”. As with any investment, users should carefully consider their strategies and the associated risks before committing to the platform. Overall, while Gains Network may be a promising option for traders looking for a decentralized trading platform with a range of assets and earning potential, it is important to approach with caution and thoroughly research the platform before investing.