Tracer is an open-source smart contract protocol focused on derivatives. In broad terms, it consists of a set of financial contract generators [Factory], managed by a DAO. These factories hold contract templates and produce tracers. Tracers are deployed instances of those contracts [Markets] running on-chain, and anyone can deploy them.

Tracer markets are designed to operate without trusted intermediaries. Financial systems that depend on intermediaries can introduce avoidable costs and risks for users. Tracers aim to provide an efficient trading approach, with reduced transaction costs and minimised or removed risks compared to other existing financial solutions.

Tracer currently includes the following Factory: Tracer Perpetual Pools. Adding, maintaining, and upgrading Factories-as well as managing the elected tracers created by these Factories-is handled solely by Tracer DAO. Tracer DAO serves as the decentralised governance for the Tracer protocol, with its members made up of holders of the Tracer Token (TCR).

Governance

Tracer DAO

Tracer is steered by a decentralised autonomous organisation (DAO). With this model, governors (individuals or stakeholders who hold TCR tokens) can propose and approve protocol changes from anywhere, without relying on a single central authority. Decisions are made through democratic voting, and the rules are public-viewable directly in the governance contract here. 

Tracer DAO holds ownership of the Factory contracts and their market templates. Through voting, it can modify these, and also adjust certain tracers (restricted to the markets that specify DAO control). Votes can further update the governance contract if the governors select a new voting system or decide to revise some of the protocol’s rules.