Read time: 2 minutesJune 29, 2021

$4.5M USD raise

Capital raise to fund new period of growth$4.5M USD raise

Tracer DAO has made tremendous progress this week and is excited to announce the raising of $4.5M of capital.

The round is supported by Framework Ventures, DACM, Maven 11, Apollo Capital, Distributed Global Ventures, Paperclip Fund and Supernova. GSR and Efficient Frontier have also joined the round as strategic market making partners. The raise was for 10% of the governance token supply, vested linearly over 2 years.

This is a landmark moment in the life of Tracer, and will assist in bringing Tracer’s Perpetual Swaps to Arbitrum mainnet in the coming months. The successful raising of capital also marks a seminal moment in DAO-centric capital raising.

Tracer will continue to innovate and create new financial markets, both for the digital and real world, that unlock financial access for individuals and firms alike. Tracer’s open-source and fully accessible perpetual swap framework will enable high-leverage transactions for any market that has an oracle price feed. An L2 native environment will position Tracer’s perpetual infrastructure to support composable-structured yield and insurance products that will benefit both system liquidity and security respectively.

Michael Anderson, Co-founder of Framework Ventures said “Tracer DAO offers exciting capital efficient derivative infrastructure that we're eager on supporting, given our shared community history with the Tracer team and our view that decentralised derivatives will characterise a lot of the growth in DeFi over the next few years. Tracer's core derivative infrastructure will support structured products that will provide meaningful ways to manage and take risk in the DeFi economy. This successful capital raise marks a landmark moment in DAO-centric capital raising”.

In light of the capital raise, we will be introducing new developers into the team to bring future financial contracts to the Tracer ecosystem. Additionally, innovative Service Providers will be engaged by Tracer DAO to deliver on the vision of peer-to-peer finance.

Mariano Conti, Maker Mafia, believes “Tracer is one of the most interesting projects I've seen, not just in the perpetuals space, but overall. Their approach to governance is purely decentralised and novel. They've been quietly building for a while, but now I expect the market to know Tracer very well in the coming 12 months”.

The Tracer community plans to hold a Gnosis Auction in the coming months, with the goal of raising additional capital to further grow Tracer. Gnosis Auction is a platform for conducting fair, transparent, and decentralised token price discovery. The auction will be open to all, and those interested in participating can stay updated via Tracer’s Twitter.

Alongside support from our new partners, Tracer is set to define the future of financial infrastructure. If you’re interested in what’s happening at Tracer, be sure to join the Discord. Along with this, if you’d like to govern Tracer DAO, apply to be a governor here.

Tracer Investors Twitter

A special thank you to all other participants of Tracer’s strategic round: The LAO, Baires DAO, Maker Mafia, Simon Cant (Reinventure), Danny Gilligan (Reinventure), Joyce Yang (GSR), Stani Kulechov (Aave), Ashwin Ramachandran (Dragonfly), Philippe Perzi (MD GS), 0xMaki (SushiSwap), TokenInsight, Henrik Anderson (Apollo/mStable/dHedge), Kevin De Patoul & Juan David Mendieta (Keyrock), Radek Ostrowski (dHedge), Emrin Nurovic (dHedge), Darren Smorgon (Sandbar Investments), Kevin O’Hara (Sentor Investments), Marc Woodward (Apollo), Sid Powell (Maple), Joe Flanagan (Maple), James Simpson (mStable) and Rohen Sood (Reinventure).

NOTE: This blog post was originally posted by Tracer DAO. The DAO voted to transition to Mycelium in August 2021. As a result, we have updated all of our documentation and content including this post to reflect the change to Mycelium.

This blog post was originally posted by Tracer DAO.

The DAO voted to transition to Mycelium in August 2022.
As a result, we have updated all of our documentation and content including this post to reflect the change to Mycelium.

Posted on Tracer
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FAQs


All of Mycelium’s products are hosted on Ethereum Layer 2, Arbitrum. Users will need to bridge their assets to Arbitrum in order to trade Perpetual Swaps, Perpetual Pools, or Lend via MYC Lending.

Arbitrum is a secure, low-cost scaling solution that ensures our users can access low-cost derivatives in a safe, simple, and speedy environment.

If you need assistance bridging your assets, our team has prepared a guide here.


Mycelium Perpetual Swaps is a decentralised derivative platform, which allows users to open leveraged long and/or short positions on crypto-assets.

Perpetual Swaps are similar to a Future where traders can take a position based on the future price of an asset, the key difference being Perpetual Swaps mechanisms allows traders to take this position at an unspecified point in the future, making it ‘perpetual’ or unable to expire. Mycelium Perpetual Swaps allows traders to take a position on digital assets such as Bitcoin and Ethereum.


Mycelium Perpetual Swaps doesn’t use an order book model for leveraged trading. Rather, all traders trade against the Mycelium Liquidity Pool (MLP). The MLP is a basket of blue-chip assets and stablecoins pooled together (ETH, BTC, LINK, UNI, BAL, CRV, FXS, FRAX, USDT, DAI, USDC) which acts as a global AMM for leveraged trading. Liquidity providers can deposit any whitelisted asset into the MLP pool in return for MLP tokens, which represent the LPs share in the diversified liquidity pool. By acting as a universal counterparty (AMM) to traders, meaning that it agrees to be the counterparty to any long or short trade at the given price, for an asset it holds, until it runs out of said asset.


In exchange for providing liquidity to the Mycelium Liquidity Pool (MLP), liquidity providers earn rewards. Primarily, MLP holders earn 70% of fees generated on the platform, which is distributed fortnightly in ETH and or esMYC.

  • ETH Rewards: The MLP pool earns 70% of fees generated from swaps and leveraged trading. These fees are converted to ETH, before being continuously distributed to MLP stakers.
  • Escrowed MYC Rewards: These are rewards in the form of a token which has the right to vest into $MYC when staked in the esMYC vesting vault.

The trading fees that make up this revenue are entry/exit fees, borrowing fees, and or a spot trading fees. For a full overview of the trading fees, visit this page.

Additionally, LPs earn rewards from a small bid/ask spread that is charged on long-tail assets (there is no spread on BTC or ETH). These rewards accrue as MLP, shown on our front-end as Market Making APR. These rewards can be redeemed at any time, in any asset form within the MLP basket of assets.


Yes. Perpetual Pools are a marketplace for leveraged tokens, while perpetual swaps simulate spot trading with margin. They are both derivatives, but Perpetual Pool tokens act most like a leveraged ETF, where positions are transferable.


Mycelium Staking is a program established by Mycelium to give utility to our governance token. MYC holders can stake their $MYC to earn ETH rewards. MYC Stakers effectively enter a loan agreement with the Mycelium Treasury to lend their MYC. The Loan Cycles occur fortnightly, meaning deposits and withdrawals are processed at the beginning/end of each cycle. Stakers can request withdrawals throughout the cycle, noting the withdrawal will be processed and distributed at the end of the cycle.


Don’t worry, you are earning rewards! The rewards only show at the end of the 14 day loan cycle.


The way the Perpetual Pool market calculates how much money to move from the losers to the winners prevents the loser from ever losing 100% of their money. The pool does this by, in extreme scenarios, sacrificing some of the gains of the winners in order to protect the losers from losing everything. This is why we say Perpetual Pool positions cannot be liquidated.

However; this does not mean you cannot lose money by trading with Perpetual Pools.


In August 2022, TracerDAO voted to transition and rebrand to core service provider Mycelium, and $MYC as the native token. All TCR holders are entitled to change their token 1:1 to MYC via this site: https://migrate.mycelium.xyz/

The majority of TCR holders have migrated to MYC, but the site will remain active for approx. 3 years to ensure all TCR holders have the opportunity to migrate.


When a trader enters a short position, the liquidity pool will fully collateralise the position with stablecoins. For short positions, the liquidity pool is essentially a market maker that takes the opposite side of the position, increasing the long exposure of the pool. If the price of the base asset depreciates, the trader receives stablecoins from the liquidity pool. If the price of the base asset appreciates, the liquidity pool receives a portion of the user’s margin as compensation.

At close, the trader will only have to return the USD value of the initial notional value to the liquidity pool. Thus, the trader is effectively entitled to the inverse of the future “PnL” (Profit and Loss) of an asset.


With Perpetual Pools v2, users can deposit any sort of collateral for maximal optionality. Additionally, there is no minimum-commit size.


On Mycelium Perpetual Swaps traders can access up to 30x Leverage. On Mycelium Perpetual Pools traders can access up to 10x Leverage.

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More Leverage. Less Overhead