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The Future of Tracer: Real World Markets

Exploring Real World Assets on Tracer - The Voyage Phase 2

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Our next destination on the Tracer Voyage is a place we should all be familiar with, the real world.

Tracer’s innovative Perpetual Pool mechanism allows the creation of long term, non-liquidatable, leveraged tokens on anything which can be represented as a data feed.

The price of Bitcoin, the temperature, the inflation rate - anything.

That includes assets which can be traded in the real world, but are typically hard to access. Our focus market for this phase of the Voyage is a prime example of this.

For the Voyagers

It’s time to get involved in the next phase of the Voyage. There’s now 1 new market available to mint your leveraged tokens from:

  • 3x WTI/USD market settled in USDC

Take a position in this specific pool and complete the quiz here to receive your Voyage POAP. You can follow our 'Guide to Minting and Burning Pool Tokens' here.

Trading Oil (WTI/USD)

Oil futures are one of the most highly traded commodity markets in the world; yet retail traders have a hard time accessing these markets despite the fact petrol prices are a variable expense faced by us all.

With Tracer’s new Oil market, we’re now provided with access to non-liquidatable leveraged long and short tokenised positions on the price of Oil.

For those who earn an income as a driver on ride-share apps like Uber or Lyft; the rising cost of fuel is not just a minor inconvenience - its a direct reduction to their disposable income. By enabling anyone with an internet connection the ability to get long or short side exposure to the West Texas Intermediate (WTI) Oil Futures price we would finally give people the ability to hedge their exposure and ultimately turn their highly variable expenses into fixed, predictable costs.

The West Texas Intermediate Oil Futures price is highly correlated with the price we face at the pump when refuelling our vehicles - but it is not perfectly correlated.

What’s possible with Real World Markets

As time goes on, the creation of more data feeds is the only constraint on the markets which Tracer can be used to create. In the future, we anticipate data feeds for local petrol prices will exist and when combined with the ability for anyone to deploy a Tracer Perpetual Pools market via the Factory interface - more efficient hedging strategies for all sorts of assets and risks will be unlocked.

Future Market: Gold

Gold is an asset which historically performs well during market-downturns and periods of high inflation. However, some argue that gold is the way of the past, and bitcoin or other digital assets will disrupt gold as the ultimate store of value. What do you believe, and more importantly how do you trade this belief?

Trading gold directly is not easy for most retail investors. Futures contracts are hard to understand and can be tedious to access. With a Tracer market, anyone with an internet connection could take a long or short position on gold in minutes, without worrying about the risk of liquidation.

Some other real world use cases we have our sights set on include:

  • Bring on-chain carbon exposure, allowing anyone to hedge their exposure to climate change related risks.
  • Go long on Lithium and profit on the electric vehicle boom using our rare earth metal markets.
  • Trade stocks which aren’t listed in your country using equities markets.
  • Hedge your interest rate exposure using interest rate markets.
  • Letting those who dream of owning a home, but can’t yet afford one, get exposure to real estate markets.

The future of Tracer is coming; you can glimpse it today by diving into our 3x WTI/USD market on the Perpetual Pools interface now.

Want more info?

If you want to learn more about Perpetual Pools V2, please explore our documentation or jump into our Discord to speak with the team. Follow Tracer’s Twitter for all the updates.

Migrating from V2 to V2.1

A new set of contracts have been deployed following a minor flaw found in the contracts. Find all the info about the fix and details surrounding the migration process here.

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Tracer Perpetual Pools V1 is currently live on Arbitrum One. Fully fungible, leveraged tokens for the DeFi economy, with no margin requirements and no liquidations.Read more

Launch Perpetual Pools