Tracer is an open-source, smart contract protocol for derivatives.
Broadly, it is an array of financial contract generators ("Factory") governed by a DAO. Factories store contract templates and generate tracers. Tracers are instances of the contracts ("Markets") deployed on-chain. They can be deployed by anyone.
Tracer markets do not require trusted intermediaries to function. Intermediary reliant financial infrastructure generates unnecessary costs and risks for users. Tracers are a highly efficient trading solution, characterised by lower transaction costs and minimised, or eliminated, risks when compared to existing financial offerings.
How Tracer's Perpetual Pools Works?
Perpetual Pools are the main product launched by Tracer. They are a derivative structure for leveraged tokens, facilitating the transfer of value between long and short sides of the pool. The value transfer is determined by a transfer function known as Power Leverage, which can obtain its input from any price or data feed. The Power Leverage function acts as a rebalancing mechanism, not too dissimilar from how a funding rate is used in perpetual swaps.