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What is Tracer DAO

Im in this video, The Defiant takes a look at Tracer DAO which is bringing together different financial market products including AMM's, futures, prediction markets, perpetual swaps and people who can contribute to different areas of the ecosystem. The work is deployed via permissionless contracts.


A couple of interesting things incloude the fact that Sigma Prime did the audit for the DAO and this is a good sign that the project is strong.

Perpetual Pools

This is an approach to being able to bet long or short (positive or negative) on an asset and not be liquidated, nor does the contract expire as it can continue for as long as you want.

There is an explanation of investors being long or short a particular financial contract. Value of these tokens is determined not by price feeds but the proportion of those who are long or short a contract.

They then use a Power Leverage mechanism to work out the amount that one side will get from another but what is quite different here is that no side can ever be completely liquidated. In this sense, returns are considered assymptotic, unlike traditional financial markets where leverage is linear (e.g. 2x, 3x) and traders can be wiped out.

They showcase the rebalancing rates here in the video as well and as mentioned in the video, with Tracer, trades are not a zero sum game.

There are pros and cons to this approach but it is an interesting feature nonetheless.

Additionally, they have some more info in this video on the rebalancing period and a screen grab of the various pool tokens on Tracer and what their leverage is and whether that is long or short. E.g. 1L is 1x leverage long, 3S is 3x leverage short.

More on Tracer and their Perpetual Pools, TCR token distribution, Liquidity Mining and more is available here.

Also you can check out more Tracer Documentation here and other info on their website.


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