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.

Tracer currently comprises the following Factory: Tracer Perpetual Pools. The addition, maintenance and upgrade of Factories, and control of elected tracers generated by these Factories, is the sole responsibility of Tracer DAO. Tracer DAO is the decentralised governing body of the Tracer protocol, whose members constitute holders of the Tracer Token (TCR).

Governance

Tracer DAO

Tracer is governed by a decentralised autonomous organisation (DAO). This kind of organisation lets governors (people or stakeholders that own TCR tokens) decide on changes to the protocol from anywhere in the world without a point of central control. It uses democratic voting to keep decisions fair and all its rules are open – they can be seen in the governance contract here. 

Tracer DAO owns the Factory contracts and their market templates. It can change these, and some tracers (only the markets that specify DAO control), through a vote. A vote can also change the governance contract if the governors choose a new voting system or want to update some of the rules.