Today, Tracer DAO has announced that its DAO has voted on and successfully passed a historic proposal to merge with their core service provider, Mycelium. The consolidation will bring with it the launch of a new Perpetual Swaps derivative product, transition to a new token with greater utility, and reduced focus on DAO governance.
Tracer DAO is a decentralized finance protocol that released a new derivative primitive Perpetual Pools, hosted on leading Ethereum scaling solution Arbitrum in 2021. The product allows traders to trade without liquidations, or margin. The mechanism uses an innovative model to rebalance positions, protecting traders from liquidations, unlocking very long-term trading opportunities compared with traditional derivatives that optimize for short-term trades (<1 day). Over the last year, Perpetual Pools saw over $800M USD in trade volume.
As the core service provider to Tracer DAO since the beginning of 2021, Mycelium was responsible for developing the smart contracts for Tracer DAO’s Perpetual Pools derivative product. Mycelium has been building blockchain infrastructure since 2019 with the establishment of one of the first and most performant Chainlink Oracle Nodes, Mycelium Node. Mycelium will bring its significant data infrastructure capabilities and expertise to enhance Tracer’s existing derivative product and add bespoke price feeds to create new derivative markets exclusive to the platform.
As part of the transition, Mycelium has also announced that a market leading Perpetual Swaps product will launch this month on Arbitrum. The product will deliver extremely low trading fees, on average 50% cheaper than centralized competitors.
In addition, as an industry first on Arbitrum, Mycelium Perpetual Swaps will deploy markets for DeFi tokens CRV, BAL, and FXS for users to trade with. Blue chip DeFi tokens BTC, ETH, LINK, and UNI will also be on the trading platform, making Mycelium Perpetual Swaps the home of the largest range of trading markets within the Arbitrum ecosystem.
Besides the Rari/Fei and Gamma/Visor Finance mergers, there is little precedent for token and community transitions in the cryptocurrency industry. The Mycelium proposal entitles all TCR holders to change their token 1:1 to MYC, a token with greater utility. The move will also see a reduced focus on DAO governance with voting reduced to deployment of new markets. This new model will prioritize creating more value and streamlining product delivery for DeFi users.
The proposal to consolidate with Mycelium highlighted the added capability and resources Mycelium can provide to help realize Tracer’s core vision: to enhance access and efficiency for everyday users via decentralised technology.
“The reality today is 99% of the population is not comfortable utilising the financial products available in DeFi. Creating wallets, storing seed phrases, understanding smart contracts, oracle risk and bridging assets is often a very cumbersome process and beyond what the average individual is willing to devote time and attention to mastering. To successfully realize the vision for widespread adoption, Mycelium believes a transition from Tracer to Mycelium, to act as an access point into DeFi, is a compelling proposal that would benefit existing and future adopters of decentralised finance,” the proposal posted by CEO and Co-Founder of Mycelium Patrick McNab outlined.
Mycelium has been building blockchain infrastructure since 2019 with the establishment of one of the first Chainlink Oracle Nodes, Mycelium Node. The company specializes in blockchain data and derivatives. Mycelium built a new derivative primitive Perpetual Pools (known as Tracer) with zero liquidations, which launched on Arbitrum in September 2021, and will be launching their Perpetual Swaps product in August 2022.