GFP: Paperclip Fund Contributions


Paperclip Fund offers its services to Tracer DAO in order to assist the delivery of Tracer products (financial contracts) to market.

Paperclip Fund will provide additional specialist services which are complementary to the scope of Mycelium’s engagement and are required for product delivery including: analysis, product research, capital provision and liquidity provision services.

Paperclip Fund have already provided similar services to Mycelium without compensation to date and are a strategic partner of Tracer DAO through the latest treasury diversification. The Mycelium team has confidence in Paperclip Fund’s ability to deliver for the presented proposal as one of the pivotal contributors to the creation of Tracer’s Perpetual Pools financial contract.


For the provision of the services described above, Paperclip Fund requests:

  1. 21,660,000 TCR tokens (2.166% of the Tracer DAO Network), vested on a pro rata basis over three years, starting on the day that Paperclip Fund started contributing to these services without payment (June 30 2021).


If engaged by Proposal to provide the services described in this Proposal to the DAO, Paperclip Fund will provide the following (Deliverables):

  1. Analysis
    1. Reporting:
      1. A quarterly document written for Tracer DAO that analyses the traffic through the Tracer Network and highlights the growth, market opportunities, yield and any interesting findings. This is separate to a treasury report, but its findings could be used for one. A Dune Analytics Dashboard will complement quarterly reporting.
    2. Market Pulsechecks:
      1. Tracer market updates sent as a Discourse/document post that shares a brief analysis of Tracer market activity - these will be provided on a bi-weekly basis while Paperclip Fund is not in a heavy R&D cycle.
  2. Product Research
    1. 20 hours a week working with the Mycelium team and Tracer DAO community on developing Tracer DAO’s contracts, regarding:

      1. Mechanism design;
      2. Simulation of features;
      3. Financial engineering;
      4. Testing products;
      5. Liquidity Mining schemes; and
      6. Any other relevant work as required.

      Where there is not 20 hours of potential work to be completed within a given week, Paperclip Fund will complete compensatory work in a future week where potential work exceeding 20 hours is available.

    2. 2 Paradigm-style informational write-ups per year that are focused on the Tracer protocol.

  3. Capital and liquidity provision
    1. Providing capital and yield farming Tracer markets:
      1. Paperclip Fund will be a liquidity provider to Tracer DAO’s smart contracts, contributing capital to potential yield opportunities.
      2. Sharing Tracer DAO with its capital network and onboarding new LPs to Tracer.

Variation and Termination

  1. Paperclip Fund acknowledges that, if engaged, its engagement can be varied or terminated by future Proposals.
  2. Paperclip Fund expects that any engagement will be terminated if they fail to deliver in accordance with the deliverables specified above without reasonable reason for the failure.
  3. Regarding deliverables such as quarterly reports, a 3 strike policy on failure to deliver seems reasonable until Tracer DAO considers reducing the vesting amount.
  4. If there isn’t 20 hours of potential work to be done throughout a week then there obviously is no requirement to do so. In busy periods (pre-launch where simulations and testing need to be done), Paperclip Fund will be expecting to exceed 20 hours per week to make up for missed time.

Conflicts of Interest

In the context of the Tracer DAO project, conflicts of interest include:

  1. Existing Service Providers who are Related Parties; and
  2. Existing (vested and unvested) holdings of TCR tokens.

Paperclip Fund wishes to declare the following conflicts of interest:

  1. Paperclip Fund is an existing Tracer DAO member (Strategic Partner).


Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.

If this offer is accepted as a Proposal under the Participation Agreement, Paperclip Fund may more formally document aspects of that Proposal.

Copyright Waiver

Copyright and related rights to this Proposal are waived pursuant to CC0.

Consensus check
  • Accept Paperclip Fund contributions
  • Reject Paperclip Fund contributions

0 voters


Wondering if you might be able to provide the community with media links for the PaperClip fund. Home page, social media sites etc.

Would be great to know more about the Paperclip team and what they have achieved with other projects.

Any info would be warmly welcomed.


Just read a few days ago that some funds are asking their portfolio compensation for services that a VC’s supposed to give. Do these count towards services that a normal VC would give to its strategic partners?

IMO the first round of diversification was to establish such relationships. If they feel they’re under-exposed to TCR, they should strike a deal to purchase more TCR (or purchase them on the open market), not to potentially stop what they’re doing until they get more TCR.

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Hi @Beepidibop, in addition to the VC services that were initially provided as specified in Proposal #11: Strategic Treasury Diversification, the Paperclip Fund team have gone above and beyond in terms of commitment and quality of work that has been produced.

They were directly involved in the production of the Perpetual Pools financial contract including helping build the financial mechanism, simulation/stress testing and financial modelling. Thus, on top of the VC services they provide, this proposal is to have them contracted as a service provider that is providing a substantial amount of additional work for correlating quality and time commitments.

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Looks like I read the situation wrong. Was a bit hung up about Deliverables 2.2 and 3.1.2 because they looked like they’re within a VC’s scope to me (mainly networking). But now I see this is probably focused more on Product Research.

I’ve dug around a bit for their profile. I’m not sure if I found the right ones because the ones I found were lacking in detail. If these profiles are the right ones, IMO a 4 man team contributing 20hr/week seems to be stretching themselves a bit thin if they’re invested in multiple projects. Though it might be ok if they were already doing 20hr/week with Mycelium.

On account of past work provided. If Mycelium feels they’re worth it, I won’t object.

As Lead Financial Engineer at Mycelium, I would like to strongly vouch for Paperclip Fund. Without compensation to date, they have provided significant value to Perpetual Pool’s mechanism design, and a range of other things. I don’t think the mechanism, or Tracer DAO, would be where it is today without the contribution of Paperclip.

I strongly support this proposal.


Hey @bobbyreddog and @Beepidibop, Tim here from the Paperclip team. The profiles you have found are correct and we are happy to answer any questions that you may have. Thanks @adam.mycelium and @lachlan.mycelium for highlighting some of the ways in which Paperclip has added value to Tracer DAO.

You are correct that most of our work is focused around product, section 2.1 outlines the main value add that we are bringing to the table. The other points have just been included as completeness for our commitments to Tracer DAO. Our current work with Tracer has included simulation and modelling around the v1 and also the design spec for v2, specifically targeting the issue of volatility decay for long term leveraged holding. You can also find my name in the whitepaper, where we helped contribute around the mechanisms that were initially proposed by Garner and Webbster in the original Poolswaps paper.

Our original conversations as Strategic Partners started with “traditional” VC services however we soon fell down the rabbithole with the Poolswaps whitepaper and it was only at that point we entered discussions around allocating significantly more time and resources towards building out Tracer from a product standpoint.

One small correction, we’re not so much a 4 man team but 4 partners that run Paperclip but you are right here, in order to maintain our current business model it will require us to continuously build out our team to ensure we are able to scale effectively. This is why we’ve actively turned down new work in favour of not sacrificing the value we provide to Tracer DAO. We are quite conscious of the reputation we are building as it defines our brand going forward. However having said this, we do also work with our network of strategic partners in the TradFi and academic world. They have been actively helping us verify the design proposals for the v2 and we’ll soon have more to share in this regard.


Thanks for your response!

I see now that I actually really underestimated how much Paperclip has done for Tracer. The participation in the whitepaper and the commitment shown by turning down other projects to focus on Tracer are exactly what I needed to see to support this proposal.