Tracer

Tracer is a derivatives meta-protocol. It can design and install financial derivatives as deployable protocols that anyone can access. These protocols are deployed from Tracer Factories. Factories generate on-chain derivatives agreements using a contract template that only requires a small set of inputs from the deployer.

While a few existing platforms allow holders of their governance token to vote on what the developers do next, including creating new financial protocols, Tracer is fundamentally different. The Factory structure allows anyone to create their own financial protocol template and propose it to the DAO. This is how Tracer is able to design and install new protocols.

Additionally, the deployment of financial contracts from a Factory does not require any developer skills and is free; except for the unavoidable transaction fee. Because Tracer’s Factories are free to use meta-protocols, Tracer is a gift to the world – granting broad access to financial tools of equal or better quality than all existing platforms and with reduced overhead costs. This decimates the ability of existing platforms to rent seek.

Anyone can experiment with the parameters of Tracer's derivatives contracts and deploy custom markets on-chain, where they are immutable. Historically, when the barriers to competition and innovation are reduced the resultant systems are far more beneficial for users. Tracer has no limit to entry for creating markets, except for an internet connection. It is a tool for transforming the financial system.

Accordingly, Tracer's first financial contract offers customised market deployment without permissions. Perpetual Pools allow anyone to create tokenised leveraged positions for a price or data feed.

A Factory is smart contract used to deploy specific markets from a template. Tracer's first Factory is the Tracer Perpetual Pools Factory. It will generate Perpetual Pools markets, which can be customised by the creator at deployment.

It's possible for any derivatives instrument, existing or novel, to be installed as a contract template with a deployment Factory. To be added to the Tracer protocol, the contract must first be proposed to, and then approved by, the Tracer DAO. The management of templates and their Factories, including incentives for new market discovery and innovation, falls under the governance of the Tracer DAO.

Perpetual Pools is the most simple protocol that concentrates liquidity around a financial agreement. Fundamentally, it's a fixed agreement regarding the transfer of assets between two sides of a collateral pool. Parties buy a tokenised share of either side to gain a pool position. Perpetual Pools cater to non-sophisticated traders who want leveraged exposure to an asset without having to worry about liquidation/margin, or paying explicit funding. In this sense, the contract breaks down barriers for retail users to gain leveraged exposure to an asset; in keeping with the protocol's purpose.

If the DAO decides, any derivatives contract can be added as a Factory to the Tracer protocol. The Mycelium team, in addition to other service providers, are in the research stage of Perpetual Pools V2.0. Beyond this, Mycelium are working on a number of novel solutions to problems faced by existing derivatives designs (like Perpetual Swaps).

Any group or individual can provide services to Tracer DAO, or present viable contract templates for consideration. The DAO is capable of funding the research and development of new contracts and will employ strong contributors to the project. Expect many more templates.