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Bankless founder: Why do we think Tracer DAO is the future of derivatives?

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Tracer's mission is to provide strong and secure financial contracts for all commodities in the world. Where there is a steady demand, Tracer is there.

原文标题：《 Tracer DAO: The Future of Derivatives 》

原文作者： Ryan Sean Adams & David Hoffman, Bankless

原文编译： 0xBread, 深潮TechFlow

I (Ryan Sean Adams) and David Hoffman decided to join Tracer as long-term consultants last September and have been working with the team ever since. We believe Tracer represents the future of derivatives -- it's not just the future of derivatives for DeFi, it's the future of derivatives for everything.

First, why. Cryptocurrencies are chaotic, and their prices change all the time, sometimes dramatically! Even Bitcoin, one of the largest and most liquid assets in the industry, is prone to rapid swings of 10%, which increase as the risk curve for crypto assets moves down.

Volatility is essential to make cryptocurrency systems adaptable and resilient, but it can also make life difficult for those seeking long-term stability. Until stability is achieved for every asset and every participant, the metasemes will not be open to the masses.

Stability is how we bring the world into the meta-universe. We can't forget the real world. While our financial roots can make cryptocurrencies more stable, the "real world" is getting messier -- Silicon Valley tech companies sway elections; Climate change is making people lose their homes; Experimental monetary policy; Political instability; The uncertainty of the employment situation. The world needs stability more than ever. But what if cryptocurrencies could export stability to the real world?

Financial products such as derivatives have helped stabilise humanity for centuries. Traders can use futures and options contracts to hedge their exposure to commodity markets around the world and encourage firms to think long term. But these derivatives have not yet reached the long-tail.

Risk management has always been a luxury for the few. And we can make risk management accessible to the public. DeFi can lower the cost of financial contracts, making derivatives easy, cheap and plentiful even in the metasverse and the real life long tail. This means free markets and low-cost risk-management products are available to all. This is Tracer's vision for the future.

Where there is a steady demand, Tracer is there.

What is a Tracer?

Tracer is a meta-protocol for derivatives. It allows unhindered access to financial derivatives by deploying them as new tokens. It can triple long BTC by minting a Token and also triple short euro by minting a Token.

By using Tracer's factory contract, any price or data can be turned into an option, swap or futures product by plugging into Oracle to generate a derivative. Tracer does not require approval, which is a significant improvement over existing derivative designs. Anyone can create a derivative on Tracer. Compared with other DeFi lending protocols, Tracer has more similarity to Rari and less similarity to Compound.

Rari, for example, is a superset of Compound, an instance of a single lending application that provides collateral for only seven assets that require approval. Rari does not permit the deployment of fuse pools. Fuse Pools is also a lending market, but its deployer can enter whatever assets are offered and borrowed, as well as the interest rate. You can reconstruct the Compound lending market with Rari's Fuse Pools, whose parameter set has infinite possibilities, just to name one example.

Uniswap of derivatives

Providing long tail assets with immediate, first-day liquidity has been a secret of Uniswap's success. In the past, Token trading required the approval of a centralized trading platform operator, while Uniswap's contract allows anyone to exchange any Token between themselves.

Tracer uses a design pattern similar to Uniswap and is a superset of any derivative contracts by using factory contracts. You can set up a permanent swap platform like dYdX on Tracer, or an option protocol like Opyn on Tracer. Factory contracts provide approval-free deployment of any asset to the permanent market. Any need you have for the derivatives market can be created using Tracer.

DeFi has unlocked democratic stability for the world. Any DeFi user can create an open and free financial market containing any asset. As the number of assets in the metasverse grew from thousands to millions to billions, it became even more important to cancel all approvals for new market deployments. This is how finance is constantly scaled up to meet the needs of the meta-universe. All this is done through factory contracts. Let's talk about these next.

The wonders of factory contracts

Factory contracts are Tracer's main product and contain a standardized template for the derivatives market. Users can enter custom parameters for their marketplace and deploy them directly to the blockchain in the factory.

Like Uniswap's factory contract, Tracer's contract is non-ratifiable, so anyone can start any market around any asset. Tracer is managed not through an approval process for individual markets, but through an approval process for individual plant contracts. Changes to existing factory contracts and additions are managed by the Tracer DAO to ensure the strongest security and highest quality of market templates that people can deploy.

How safe is the prophecy machine?

Although Tracer supports the creation of markets for the data feedback provided by any predictor, these contracts may not be secure. In the past, it was difficult to check the performance and security of the predictor, so price-fixing caused a big problem for DeFi. Tracer's integration with the Reputation DAO allows users to check and verify data security for each contract they use. Participants can access data used in their markets via the Reputation. Link's "View Source" widget. Tracer also launched its first killer application, which will be enhanced with Tracer V2.

Perpetual Pools was the first killer app

Tracer is the first DeFi protocol to introduce a tokenized Perpetual Pool. Perpetual Pool is an easy way to generate leverage ERC20, which is a class of leverage tokens that do not expire and cannot be liquidated. It's like adding a 3x long ETH Token to your wallet... And hold it. Tokenization means that leveraged positions can be used in DeFi as the "Lego bricks" of currency. This gives Perpetual Pool users more freedom, more choice over their capital, and allows other builders to create products on top of the Tokenized Perpetual Pool.

Upcoming Tracer products

Perp Swaps:On-chain swap markets, enabling the deployment of new markets without approval.

Options:An on-chain options market used to eliminate the downside risk of digital assets. You can use it to lock down assets in the game and fight epic battles that last for weeks; You can also use it to manage the risk of falling prices and continue to have a good time.

Interest rate swap:Lock in interest rates across lending agreements and make them more decentralized.

Futures:Producers' cash and physical delivery markets, used to manage the risk of assets up and down the chain.

Structured products:Execute a professional trading strategy through an easily accessible vault and gain from it.

How might people use Tracer?

Add utility to your Token

Do you hold a bag of governance tokens and want to use it to add utility to your holdings? Use your ERC20, which can take a stand on the performance of any other Token, even non-crypto assets.

Bet on Cryptopunks without buying

Want a Cryptopunk but can't afford it? Lock your savings into a market that tracks the value of Cryptopunk so it doesn't run away from you. These are just a few of the ways people use Tracer. We anticipate that the most playful uses of Tracer in the future have yet to be imagined.

Reduce the gas fee

Oracle networks that provide data sources for smart contracts, such as Chainlink, use ETH to pay mining fees and boost DeFi economy. You use Tracer to hedge against mining fees.

Go long like ETH Maxi

Do you think Ethereum will remain dominant and Alt L1's modular blockchain theory will not survive? If you want to hold long-term leverage risk, avoid liquidation risk and maximize your ETH Maxi view, you should use Tracer.

Hedging the real estate market

Tokenized real estate will not materialize for a long time, and it is much easier to create synthetic markets using price prognostic machines. (The following are examples)

· Long Manhattan, short Brooklyn.

· Long two-bedroom apartments, short single rooms.

· Long the West Coast, short the East Coast.

Metaverse Taxi Medal

Did you spend years saving up enough money to buy a super powerful game item and then use it to generate revenue for yourself in Metaverse? With Tracer, you can hedge against the value of the item over time. Make your assets in the game pay off, while making sure you don't waste your time because they're depreciating.

What are the opportunities?

It's definitely a huge opportunity. The derivatives market is expected to exceed $1 trillion, and some analysts think it could be at least 10 times global GDP. Over time, it will migrate into DeFi. But DeFi will first capture the fast-growing Metaverse derivatives market. Metaverse's potential is so great that some of the biggest players in traditional finance have made early estimates of it.

Morgan Stanley and Goldman Sachs predict digital TAM will expand by 10-15% over the next 20 years, locking the Metaverse opportunity in the $8 trillion range. We expect derivative assets to be valued at at least 10 times the total assets of the Metasverse. The metasverse will trigger a "Cambrian" explosion of assets around the world, many of which will then need stable products and services in order to gain wider acceptance. With TracerDAO's factory contract, Tracer has the ability to make it easier for people to navigate and settle in the metasverse.

To stabilize the metasverse is to stabilize the world

Tracer's mission is to provide strong and secure financial contracts for all commodities in the world. Where there is a steady demand, Tracer is there. The metasomes can cause a "Cambrian explosion" by exploding the number of products on the market. Not only that, but the products that emerge in the meta-universe are likely to be messier than those in real-world markets. The metasverse is the perfect testing ground for Tracer to hone and strengthen its contract. The extreme volatility of many illiquid digital assets is a perfect stress test for creating strong markets for goods of global relevance.

Tracer stabilizes the meta-universe first, and then the entire world.