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Derivatives Protocol Raises $3.75M in Sale of Governance Token

The Tracer Protocol has completed a sale of 50M TCR tokens for 3.75M DAI, giving its total supply a valuation of $75M at the sales end.

It has since nearly doubled to $137M, according to CoinGecko.

The auction ran for five days, ending on September 15, and it used the Gnosis batch auction system, so that all participants who purchased any TCR tokens paid the same price, 0.075 DAI.

Clearing Price

Tracer Protocol is a project that will enable leveraged perpetual pools of long and short positions against different assets. The price of a long or short position is determined by the ratio of the longs and shorts in the respective pool, much in the same way that Uniswap version 1 determined the price of the two tokens in each of its pools. 

There’s no liquidations in Tracer’s derivatives because the success or failure of a given position is simply measured as a share of the underlying pool of capital created by users buying their positions.

The team used a Gnosis batch auction to run the sale, because it allowed everyone who placed a bid that was greater than or equal to the final clearing price to attain TCR tokens without driving a gas war on Ethereum. TCR is the governance token of the Tracer Protocol.

A total of 281 Ethereum addresses placed bids in the sale, but all may not have reached the clearing price.

Decentralized governance

The auction put 5% of the TCR tokens on the market immediately. Along with previous capital raises conducted by the team, there are approximately 55M TCR trading today, from a total supply of one billion. 

TCR was at $0.089 in early morning trading NY time, up almost 19% from the clearing price of the auction.

A spokesperson for Tracer sent The Defiant the following statement on behalf of the project:

“These funds will go toward building derivatives infrastructure for the decentralized economy. Saying this, the funds raised were only of a secondary concern. Primarily, we are most thrilled with the distribution of TCR amongst our community aligning with our goals of decentralized governance.”

Tracer Protocol has backing from Framework Ventures, GSR, Distributed Global and The LAO, among others. 

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