# TracerDAO

## Reference Material
- [Website](https://tracer.finance/)
- [Whitepaper](https://tracer.finance/media/whitepapers/perp-swaps/Tracer_Perpetual_Swaps.pdf)
- [Lions Mane (Dev Team)](https://github.com/tracer-protocol/tracer-dao/blob/master/proposals/LionsmaneProposal.md)

## Project Details

* Decentralized Perpetual Swap Protocol
* Launching on Arbitrum end of June / early July
* [Details](https://twitter.com/tracer_finance/status/1400760742521884674)
* Strategic Round end of June
* Public Round Via Gnosis Auction expected early July
* Entity issuing token is based out of British Virgin Islands
* Lion's Mane entity is based in Australia

## Nitty Gritty

* Anyone can use the factory to start a new pool (perp swap pair)
* Perps can be traded via AMM & via orderbook
* AMM style facilitates bootstrapping liquidity via liquidity mining
* Blowup risk of swap pairs is isolated to individual pool
* If perp goes into liquidation, liquidators are offered a coupon to guarantee that they profit from the liquidation within 10 minutes. If they don't they are refunded the difference via the insurance fund.
* If position goes underwater before liquidation, loss is covered by insurance fund
* Insurance fund is capitalized through 3rd party deposits who are incentivized via collecting insurance premiums from open swap positions.
* Each pool has its own insurance fund
* If an insurance fund is drained, subsequent losses are socialized among position holders through progressive deleveraging (higher leverage first).
* No protocol backstop via TCR token

## Token Distribution
- Total Token Supply 1,000,000,000 TCR (1B)
- Protocol Treasury = 750,000,000 (75%)
- Public Round (Gnosis Auction + Airdrop) (15%)
- [Dev Team - current & future = 215,100,000 (21.5%)](https://github.com/tracer-protocol/tracer-dao/blob/master/proposals/LionsmaneProposal.md)
- 21,500,000 already vested (2.15%)
- 32,250,000 vests August 2021 (3.23%)
- 161,250,000 vests linearly over 3 years (16.13%)
- Strategic Round = 75,000,000 (7.5%)
- *Where Maker Mafia would fit in*
- RMIT BH - Academic Advisors = 17,500,000 (1.75%)
- The 100 = 10,000,000 (1%)
- Governors & Alpha Testers = 5,000,000 (0.5%)
- DeFi Pulse = 2,000,000 (0.2%)

## Strategic Round Details

* Raising $3.5 USD for 7.5% of token supply
* $46.6M USD Valuation
* Pantera is leading strategic round
* Possibly including other VC funds at the same tiered level - not sure about other leads yet.
* Angel investors allocated at the 50-100k allocation
* 2 year linear vesting
* **Potential Total Allocation to Maker Mafia = 50k-100k**

## Token Details

TCR is a "value-less" governance token which controls TracerDAO the owner of the Tracer Protocol. Presumably TCR token holders will vote to give themselves fees at some point in the future. Governance is done through an offchain snapshot vote and all votes are executed via a multi-sig. Multi-sig signers were voted in by TracerDAO Governance and includes influencer-clowns like ChainlinkGod.

## Soft Commitments

Lion's Mane [Dev Team] prior to selling any TCR tokens received in connection with this Offer, make public, via Lion’s Mane’s website or social media accounts:
* When the tokens will be sold;
* Where and how the tokens will be sold; and
* Why the tokens are being sold.

*aka we pinky-promise not to dump on you*

**Notes:**
This makes me think the actual developers vesting schedules are different from Lion's Mane vesting schedule. Just because Lion's Mane has vested a certain amount of tokens does not necessarily mean those are distributed to the contributors of Lion's Mane.

## Recommendation

* Valuation is fair
* Perpetual swaps are a hot trend
* Working product release in summer
* Dev allocation is quite high, especially as percentage of circulating supply
* Need advice and increased adoption on governance and community development

Overall recommendation is a go.