Proposal #48: Perpetual Pools V2.1 Deploy

Summary

Perpetual Pools V2 was deployed on May 19, 2022 with a new SMA (Simple Moving Average) pricing mechanism to reduce the effects of volatility decay (see Proposal #47). SMA pricing uses an oracle wrapper that averages the spot price of the underlying asset over a period of time. The two pools that were deployed on May 19 use an 8-period SMA, meaning commits executed at time = T use an oracle wrapper that averages 8 spot prices, since T-8 hours.

The intended behaviour is a new datapoint is added to the SMA set of prices at every pool upkeep. A week after launch, it came to our attention that the SMA datapoints and pool upkeeps are not in sync. Rather than the SMA averaging 8 spot prices since T-8, the bug causes the SMA to average 8 spot prices ranging from the last 8-16 hours, making it more difficult to estimate the resultant index price.

A deployment of Perpetual Pools V2.1 is required to patch the fix. The new features of V2.1 are detailed below.

New Features

Perpetual Pools V2.1 will include the following updates:

  1. New logic to handle multiple pending upkeeps. To ensure the SMA datapoints align with the pool upkeeps, the mechanism to handle multiple pending upkeeps has been modified. When all upkeeps are completed, the next due upkeep is based on block.timestamp which aligns with the upcoming SMA update, rather than a calculated value which is being used in V2.0. This is an update of the PoolComitter.sol contract. Read more about the update here.
  2. Fee required to deploy new index feed and new pools. To date, TCR has acted purely as a governance token. However, several upgrades have been identified that aim to give the TCR token greater utility. The first upgrade introduces a fee to deploy new indices and pools using the Tracer Factory. The fee amount is controlled and modifiable via governance. We propose that the initial fee amount should be set to 5,000 TCR (worth approximately US$250 at time of writing). This is an update of the PoolFactory.sol contract. Read more about the update here.

If this proposal succeeds, Tracer DAO will install Tracer Perpetual Pools V2.1 in the Tracer Factory, to reflect the features described above. Perpetual Pools V2.0 will continue to exist, however Tracer DAO will not commit to servicing V2.0 markets with market making agreements, liquidity mining incentives, pool token staking rewards or future skew farm vault products.

Liquidity Mining

The liquidity mining strategy for Perpetual Pools V2.1 will remain same as outlined in Proposal #47 however if this proposal is successful, emissions will cease for V2.0. Emissions will be established for V2.1 and new Balancer pools will be established using Pool Tokens from Perpetual Pools V2.1.


Deliverables

If this proposal is successful:

  1. Perpetual Pools V2.1 will be deployed to include the new features described above, and;
  2. Liquidity Mining rewards will be redirected to incentivise new V2.1 markets.

Variation and Termination

This Proposal may be terminated or varied by future Proposals approved by the DAO.


Interpretation

Unless expressly agreed otherwise in writing by an Authorised Representative of the DAO, all terms that are defined pursuant to the Participation Agreement will retain its meaning.

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

The following definitions shall apply in this Proposal:

Definitions

Commencement Date: the date this Proposal is passed on chain and is signed.

Tracer DAO: A decentralised autonomous organisation for Tracer, an open-sourced blockchain-based financial protocol.

TCR Token or TCR: A measure of voting power in the Tracer DAO that attaches to a specific Wallet Address, whereby the greater amount of TCR Tokens a person holds in that Wallet Address, the greater the person’s voting power.

Related party: Means, but is not limited to, the Service Provider’s parent company, subsidiary, affiliate, assignee, transferee or one of their representatives, principals, agents, directors, officers, employees, consultants, contractors, members, shareholders or guarantors.


Copyright Waiver

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

Sharing a related article that addresses potential FAQs regarding the possible V2.1 deployment: Perpetual Pools V2 Discovery | Tracer Perpetual Pools

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