EVM - 7. Derivative Daze
Question:
Derivatives DEX Gains Network recently crossed a major milestone, with more than $1.5 million in trading volume on Arbitrum, fueling further interest in derivatives trading on the platform.
Building on this Dune dashboard, create a dashboard that shows the following data for Gains Network and any other derivatives trading markets you can find:
- Total volume
- Total traders
- Total trade fees
- Trade volume over the past day/month/three months
- Traders over the past day/month/three months
Overview of essay:
In this essay, we are going to study the DEX Gains network over the selected time frame. For this purpose various sectors have been analyzed to assess the performance of Gains.
This analysis divided into the following parts:
- Trade analysis (GMX on Arbitrum and Gains on Polygon)
- Detailed analysis of GMX activity on Arbitrum
- Impacts on GMX and GNS tokens
Gain network and GMX:
Gains Network is a decentralized derivatives trading platform built first on the Polygon network and expanding to other decentralized networks.
On Gain networks, crypto derivative traders are allowed up to 150X leverage and up to 1000x for forex trades.
As a decentralized leverage trading platform, Gains Network allows users to predict if the price of an asset will rise or fall, correct predictions leading to profits. These profits are further accelerated as Gains Network offers high leverage without funding fees – as leverage isn’t directly borrowed, traders’ profits are their own. However, as with any leveraged trading, losses are also amplified.
As the central platform’s utility token, GNS is used or burnt when a trade is open or closed. The process of minting GNS is used to pay back the trader after these trades have gone through.
GMX is a decentralized platform for transactions with very low fees and zero Price Impact, which allows users to make perpetual transactions. Users can increase their trading power up to 30 times or in other words use 30X leverage.
The Native token of GMX platform called GMX token.
The reward of the liquidity providers of these pools is obtained from market makers, swaps transactions and leveraged transactions. What sets GMX apart from its competitors is the various benefits for GMX currency holders, pool liquidity providers, as well as the platform's inflation-free token economy.
Methodology:
The data provided by Flipside has been used to handle this analysis.
This dashboard divided into the three major sections as below:
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GNS token →
0xE5417Af564e4bFDA1c483642db72007871397896
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GMX token →
0xfc5A1A6EB076a2C7aD06eD22C90d7E710E35ad0a
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Transfer analysis→
- Number of transfers and senders
- Volume of each token
- Price of GMX
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Trade Analysis→
- Count of trade and traders, trader per day
- Volume: Trade volume, average trade per day, 7-day moving average
- Total and average paid fee (in USD)
- Cumulative analysis
- Top assets and swap pairs
- Distribution of swappers by swap size and count of swaps
- Comparison of GMX with Balancer and Sushiswap
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Key Findings:
This part concentrated on the trade activity of GMX and Gain networks over the selected time frame (60 days by default):
- The GMX platform has more usage than Gain network from all investigated aspects like count of swaps, distinct swappers and volume of trade in USD.
- Total paid fee (in USD) for GMX is higher than Gains. Also as can be seen, trades on GMX are expensive than Gains according to the average paid fee in USD.
- The average volume of usage for GMX and Gain network are really close together but GMX has larger average volume in USD.
- The over time investigation on usage of various trade platforms shown the domination of GMX platform over Gain network.
- The highest trade volume in USD for GMX platform occurred on December 13 with over 16 million USD for the past 2 months.
- From the average paid fee in USD perspective, the Gains network experienced highest average paid fee on December 16 with near 0.3 USD. Also, on GMX the highest average paid fee in USD occurred on February 1st with over 0.26 USD over the selected time frame.
- The 7-day moving average trade volume on GMX was more than Gain network most of the days. Although, the highest average volume of trade (in USD) happened on December 19, 2022 with over 1595 USD.
- The cumulative analysis related to the trade volume in USD shown the sharp trend of GMX on Arbitrum and the higher level it reached.
Key Findings:
This sections provides the detailed investigation on the GMX trade platform on Arbitrum over the selected time period (past 2 months).
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The most popular asset among GMX users is USDC and thr most popular swap paid is USDC→WETH.
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Most of the traders on GMX swap platform made swaps worth less than 10 bucks.
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GMX trade platform has loyal swappers. According to the results, more than 64% of swappers on this platform perform 1-5 swaps in the selected time period.
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==Now its time to compare the activity of GMX with other swap programs on Arbitrum. For this purpose, the Balancer and Sushiswap platforms have been selected.==
- The Sushiswap has been dominated the swap activity compare to GMX and Balancer. However, the GMS stands in the second rank from the count and volume of trades.
- The average paid fee (in USD) is high for trades on Sushiswap compared to other two platforms.
- Also, the average swap volume (in USD) for Sushiswap is higher than other two trade platforms.
- The over time investigation demonstrated the domination of Sushiswap. Also, indicates the promising movement of GMX trade platform on Arbitrum.
Key Findings:
The impacts of usage enhancement by GMX and Gain network on native tokens have been analyzed in this part:
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The price of GMX token has been followed the increasing trend over the past2 months. The increment on Gains network application and overall view of crypto market have been affected the GMX price.
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The volume of transferred GMX on Arbitrum and GNS on Polygon both have been enhanced over the selected period.
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Also from the volume of transfer aspect, the highest transfer volume of GMX token on Arbitrum occurred on December 13 with over 1 million tokens in the past 2 months. However for GNS on Polygon, the highest volume of transfer occurred on December 31 with near 6 million tokens.
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Conclusion:
By the use of combination of the above parts, the following statements could be concluded:
- Gains network is a blockchain technology that is revolutionizing the way we do business. It is a decentralized platform that enables developers to create smart contracts and build applications on top of it. GMX's Arbitrum and Gain on Polygon protocols are leading the way in this space, with an increasing trend towards using these protocols for various use cases.
- Arbitrum and Polygon are layer-2 scaling solution for Ethereum, allowing developers to build high-performance applications without having to worry about scalability issues. On the other hand, Polygon provides developers with a suite of tools and services to develop their own blockchains and decentralized applications. With GMX's suite of products, businesses can easily create secure and efficient solutions for their customers.
- The GMX network on Arbitrum has higher application than Gain network on Polygon.
- The average trade volume on GMX of Arbitrum has been increased over time and passed Gains platform most of the times.
Useful links:
The time frame of this investigation can be changed between (30, 60 and 90 days) by logging into the Flipside crypto website.
Also, the time basis of this investigation can be changed between day, week and month.
By default the time period is considered for the past 60 days (2 months) on the daily basis.