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Perpetual Pools Migration: V1 → V2

Tracer V2 is coming! But what happens to V1?

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Tracer Perpetual Pools V2 will go live on Arbitrum mainnet soon after the end of the beta testing period. V2 introduces a suite of improvements to Tracer’s smart contracts and user interface. Going forward, the core team’s efforts will be focused on supporting V2 of the product - accordingly we will be winding back our support of the V1 markets.

The following FAQ was created to assist V1 users who might be wondering how this transition will impact them.

What is V2 and how is it different to V1 of Perpetual Pools?

Tracer’s Perpetual Pools V2 contracts are designed to be fully composable, so that specific market parameters can be adjusted to create a variety of use cases. The specific changes and implications of this will be explained in detail in our technical documentation.

The initial use case we are focussing on for the V2 launch is the creation of leveraged tokens which experience minimal volatility decay and are hence suitable for holding over long time horizons.

This is in direct contrast to our V1 pool tokens which have found utility as swing trade instruments, best suited for short-term directional bets on the price of an asset.

It is important to note that the V1 and first wave of V2 products are intentionally designed to perform differently, and hence have different use cases.

What happens to my V1 Pool Tokens once V2 is live?

The V1 Perpetual Pool contracts are live on Arbitrum mainnet and hence exist in perpetuity. The markets themselves will always exist on the blockchain - however, Tracer DAO will not commit to servicing these markets with market making agreements, liquidity mining incentives, pool token staking rewards or future skew farm vault products.

The pool tokens created by V1 markets will also continue to exist once V2 is live. The V1 user interface used to mint and burn tokens will still be accessible via a toggle on the Perpetual Pools V2 UI.

It is important to note that once TVL in a Perpetual Pool market gets low enough, rebalancing performed by keeper bots may cease and the markets will no longer function as intended. Given the current TVL in each of the V1 markets - we intend to cease rebalancing of all markets other than the Bitcoin and Ethereum markets. If you have a position in any of these markets we suggest you burn your positions.

What do we mean when we say we will no longer provide support to the V1 product?

All of our documentation, user guides or tutorials will be updated to reflect the changes in the V2 contracts and V2 interface. These guides may therefore no longer be suitable for onboarding new users to the V1 product.

Our support team will no longer commit to providing support for issues experienced using the V1 product or UI. We do not intend to update the V1 UI even if bugs are discovered.

We will not provide technical support to anyone interacting with the V1 contracts, API’s or SDK’s. If you wish to build on top of Tracer - we strongly urge you to do so using the V2 contracts.

Should I burn my V1 tokens and mint new ones via the V2 contracts once V2 is live?

The decision to burn V1 tokens and migrate to V2 depends on what you are using the product for. If you are currently using the V1 markets for swing trading, we recommend continuing to do so - as the V2 markets available at launch will not perform as well for this use case.

If however, you are interested in gaining long-term, leveraged exposure to assets; then the V2 product will allow you to do this much more efficiently than V1 does. In this case, burning your V1 tokens and migrating to V2 is recommended.

Please note that if a substantial amount of collateral exits the V1 market contracts, Tracer DAO cannot guarantee the performance of this product. We recommend users monitor the market dynamics closely and respond accordingly.

If you have a position in any V1 market which is not an Ethereum or Bitcoin market we strongly recommend you burn your position - as due to low TVL these pools will likely cease to be rebalanced by keeper bots following the launch of V2.

What happens to TCR emissions on Perpetual Pools V1 once V2 launches?

Once Perpetual Pools V2 is live, all emissions for staking V1 Pool tokens will cease. TCR emissions will instead be directed to incentivizing user adoption of the V2 Perpetual Pools product.

Will the V2 contracts ever be suitable for swing trading?

Yes. The fact the parameters of our V2 contracts can be adjusted with each market deployment means that short term swing trade products, which have similar optimal use cases to our V1 product, can be created using the V2 contracts.

In the medium term, there are tentative plans to create a short term hold product using the V2 contracts with similar performance to that of V1’s markets - however, initially our V2 markets will focus on creating long term leveraged tokens.

How do I migrate my tokens to V2?

Simply burn your existing V1 pool token positions using the Tracer interface and mint a new equivalent position using the V2 interface.

You can visit the ‘How to mint & burn tokens’ guide in the docs here.

Who do I talk to if I need help?

Our friendly community and core team will be monitoring the ‘help’ channel of the Tracer DAO Discord to provide assistance to anyone who needs it. You can jump into our Discord community here.

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