Umami Finance Partners With Tracer DAO To Enhance Arbitrum DeFi Ecosystem
Umami Finance is delighted to announce it is partnering with Tracer DAO, an open-source protocol for smart contract derivatives, to accelerate the growth of the Umami’s & Tracer’s DeFi platforms as well as the broader Arbitrum ecosystem.
Umami will support Tracer’s upcoming launch of v2 Perpetual Pools, the first truly open-source smart contract platform for DeFi derivative products, by creating new UMAMI-collateralized Tracer pools & deploying >$250,000 of protocol-owned treasury assets to support Tracer’s products.
The partnership will accelerate the launch of Tracer v2 Pool products. It will also create new use-cases for the UMAMI token & generate additional yield & fee revenue to its treasury, which will enhance payouts to UMAMI Marinators.
A Robust Product Pipeline
Tracer’s v2 Perpetual Pool platform will launch as soon as this month. It will be the first platform to enable truly open-source creation of new DeFi derivative products. Users will be able to capture value from virtually any asset or index of assets on blockchain or elsewhere at varying levels of leverage.
Umami already is one of the largest holders of Tracer’s Perpetual Pool tokens via a ~$200k holding of Tracer’s 3S-ETH/USD pool token. The position hedges out a sizable portion of the Umami treasury’s market risk & accumulates >45% APR in TCR rewards.
Umami will execute on additional capital deployments in the coming weeks, including “farming the skew” on both sides of Tracer L/S Perpetual Pools for market-hedged yield & supporting liquidity for other Tracer products.
Meanwhile, Umami’s first UMAMI-collateralized Tracer pools will support a new market-neutral vault for stablecoins that it will be announcing in partnership with Tracer & GMX later this week. Stay tuned!
A Long Term Partnership
In the coming weeks, Umami & Tracer will continue to deepen their partnership. Umami will expand its role as a liquidity provider to Tracer, create additional UMAMI-collateralized Tracer v2 Pool products & help Tracer stand up markets for additional product-types it is launching in the near future.
Tracer’s Perpetual Pools currently allow users to take long & short positions in assets such as ETH, BTC & others at varying levels of leverage without running any risk of liquidation. The new v2 pools will allow anyone to quickly create new derivatives & also greatly reduce volatility decay, which cause current pools to lag performance of base assets over long periods of time.