Hey Ohmies,
The team at Tracer would like to develop an Olympus specific Perpetual markets using OHM and gOHM as collateral. These markets would allow Ohmies to go long or short an underlying asset without needing to sell OHM or gOHM in the process.
With this we would develop an Olympus specific UI on top of Tracer smart contracts. Before going further let me give a quick rundown of Tracer, our Perpetual Pools product and our traction to date.
Tracer is a derivative protocol on Arbitrum. Our long term goal is to be derivative infrastructure where anyone can deploy a derivative product using the Tracer Factory to permissionlessly deploy markets. All that's needed is an ERC20 token to serve as collateral and an Oracle Price Feed to track an underlying assets or group of assets (aka an index).
Tracer's first product is called Perpetual Pools. With Perp Pools you can go Long or Short with leverage without being subject to liquidation risk or margin. Simply mint a tokenized leverage position (say 3x Long ETH) with the ability to hold this token in your wallet or use through the DeFi economy.
We are working on a new version of Perpetual Pools that will mitigate something called volatility decay. Basically vol decay is something that effects leveraged positions to the point that they cannot be held for long periods. With v2 of our Perp Pools product, we are mitigating volatility decay to a point Tracer Pools tokens can be held for months if not years. Mint a leverage Long of ETH and hold in cold storage.
Since launching in September, we have traded over $500m and open interest (TVL) of 50m. We have had no exploits and have been audited by some of the best firms in the business like Sigma Prime, Run Time Verification and Spearbit plus received solid marks from DeFi Safety.
So why does this matter and why are we looking to do this?
First off, a few Tracer Core team members are long time Ohmies and have wanted to find a way to bridge each others communities for a long time (I personally hold a small gOHM bag but not sure if this qualifies me as an Ohmie, yet). Secondly, we love ambitious projects and creating the reserve currency for the internet falls well in line with that.
In order to achieve this goal, broadening the EconOHMy is necessary. What Olympus is doing on this front is incredible. Tyche, Olympus Pro, Odyssey, the Incubator and other initiatives are well in line with developing the velocity critical to achieving this mission.
We believe creating a derivative layer in the EconOHMy can help accelerate this process and Tracer's Perp Pool product does this in a way that improves on the UX of (9,9) by removing liquidations from the equation so adverse movements in the underlying markets don't negatively impact the stability of the system.
What we propose is for Tracer's team to develop an Olympus specific UI on top of Tracer smart contracts. A portion of fees (10% is currently what is baked into the smart Contracts) would flow into the Olympus Treasury as a result of Ohmies participation in these markets.
I know what you saying to yourself… "Squelch, why doesn't Tracer just list OHM and gOHM markets on Tracer's UI directly instead of going through the effort of building a UI for Olympus?" Great Question! It goes back to our long term vision that Tracer is the base layer of infrastructure that others build on top of to create risk management tools that are meaningful to their communities.
Whether this is P2E games building risk management tools for players, PFP NFT projects mitigating financial risk of holding Blue Chip like Crypto Punks or, ultimately, folks in the real world using to hedge out things like fuel consumption directly from their favorite ride sharing app.
We have discussed this idea with the Core team including Zeus, Vira, Indigo, Asfi, Ja La and others (sorry for the shameless name dropping) and have their support to proceed with this idea. I am here to help answer any questions prior to formally submitting a proposal.
If the proposal passes, we are launching Tracer Perpetual Pools v2 later this month. We would likely make sure there are no issues post-launch and then deploy the Olympus specific UI a few weeks post-launch and be there to provide general support to Olympus users.
Other than the support from Ohmies using these products on Olympus UI, if they are interested, and a bit of co-marketing we really aren't asking for anything and are willing to do the work to make this dream a reality.