Overall Metrics

• Looking at the overall metrics GMX clearly dominates Gains Network in terms of Transaction Frequency, Transaction Volume and User Frequency.

• Transaction Frequency: GMX has 350K transactions vs 180K transactions for the gains network.

• Transaction Volume: GMX has 1.2B $USD volume vs 0.2B $USD for the gains network.

• User Frequency: GMX has 60K users vs 10K users for the gains network.

What is Gains Network

• Gains Network is a decentralized perpetual exchange on Polygon, with plans to expand and provide a suite of DeFi products.
• Their first product - gTrade, allows massive on-chain leverage, up to 50x for US stocks, 150x for cryptocurrencies, and 1000x for forex markets.
• Various trading pairs have been listed on gTrade including 10 forex pairs (USD, EUR, JPY), 25 stocks (APPL, GME, TSLA) and over 48 cryptocurrencies (APE, BTC, ETH) that all share the same liquidity in GNS/DAI.
• The biggest advantage to gTrade is the ability to open a 100x leveraged position while having a guaranteed stop-loss price feature as a protective mechanism during a downturn. By using a Chainlink node and taking the median price from seven major data sources, Gains Network also prevents manipulated scam wicks or false prices from impeding its daily trading.[1]

What is GMX ?

• GMX is an on-chain decentralized perpetual and spot exchange trading platform on Arbitrum and Avalanche. Users can trade assets on-chain, without an account, KYC, geographic restrictions, or high centralized exchange fees.
• GMX is viewed as a major representative of the “real yield” narrative in the crypto community of summer 2022. The staking yield comes in the form of “harder” layer-1 tokens such as ETH and AVAX and not in inflationary tokens, in addition to the fact that yield comes from genuine on-chain financial activities. ETH is the token rewarded on the GMX app on Arbitrum and AVAX is the token rewarded on the GMX app on Avalanche. [2]

Conclusion

Has one platform absorbed more volume than the other? How impactful is GNS volume to polygon? GMX volume to Arbitrum?

• GMX has been absorbing more volume for sure, 1.2B $USD for GMX vs 0.2B $USD for GNS speaks for itself.
• GMX has seen a lot more transaction and user frequency as well, which means it is clearly more impactful to Arbitrum than GNS is to Polygon.

Are there any insights that can reveal why Gains Network wants to move into the Arbitrum ecosystem?

• One would expect GNS to do a lot better in Polygon, atleast comparable to GMX on arbitrum.
• Polygon is a veteran blockchain and has a lot users and volume flowing through it but that doesn’t translate to the volume to GNS.
• On reason I can see for GNS to move to Arbitrum is that Arbitrum is a relatively new chain, GNS would have less competition there as compared to the other protocols on Polygon, since polygon has been there for a while now, which can be seen by the number of users that are active on Arbitrum as compared to Polygon.

Image Credits:

Methodology

• The SQL query is build on top of this SQL query.
• The analysis looks at arbitrum.core.fact_event_logs for GMX trades and polygon.core.fact_event_logs table for the Gains Network.
• The trades on Arbitrum are filtered out by origin_to_address in ('0x3d6ba331e3d9702c5e8a8d254e5d8a285f223aba','0xb87a436b93ffe9d75c5cfa7bacfff96430b09868')
• The trades on Polygon are filtered out by origin_to_address in ('0xd8d177efc926a18ee455da6f5f6a6cfcee5f8f58','0x65187fec6ecc4774c1f632c7503466d5b4353db1','0xf8a140db8b05bec52c7e86d0d40d72f8e54fe559')
• ethereum.core.fact_hourly_token_prices is used to calculate USD amount of trader for each token.
• We look at various metrics namely Transaction Frequency, Transaction Volume, User Frequency, Average Transaction Volume and Median Transaction Volume.
• We look at both cumulative and monthly metrics for each.

GMX vs Gains Over Time

Transaction Frequency

• The Transaction Frequency of GMX has always dominated the frequency of the Gains network.
• Highest for GMX was 77K in Sep 2022, vs 25K for Gains in Apr 2022.
• The general trends for GMX is increasing frequency, whereas Gains has seen a decrease and then an increase again.

Transaction Volume

• The Transaction Volume of GMX has always dominated the volume of the Gains network.
• Highest for GMX was 350M in Sep 2022, vs 48M for Gains in Apr 2022.
• The general trends for GMX is increasing volume, whereas Gains has seen a decrease and then an increase again.

User Frequency

• The User Frequency of GMX has always dominated the frequency of the Gains network.
• Highest for GMX was 17K in June 2022, vs 1.4K for Gains in Oct 2022.
• The general trends for GMX is decreasing frequency, whereas Gains has seen a decrease and then an increase again.

Average Transaction Volume

• The Average Transaction Volume of GMX has always dominated the average volume of the Gains network.
• Highest for GMX was 6.6K in May 2022, vs 2.2K for Gains in Apr 2022.
• The general trends for GMX is decreasing average volume, whereas Gains has seen a decrease and then an increase again.

Median Transaction Volume

• The Median Transaction Volume of GMX has always dominated the volume of the Gains network.
• Highest for GMX was 500 in Apr 2022, vs 150 for Gains in Aug 2022.
• The general trends for GMX is decreasing volume, whereas Gains has seen a decrease and then an increase again.

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