Summary

Tracer Perpetual Pools may be applied to a wide range of existing financial markets to bring them on-chain. Tracer should provide a 3x and 1x leveraged EUR/USD Perp Pool on Arbitrum mainnet. This pool may be used by European cryptocurrency holders to hedge their FX risk, and will also serve as a prime example of Tracer Perp Pools being applied to an existing market, foreign exchange, that usually operates entirely independently of Crypto markets. Additionally, an FX Perp Pool would be a great place to market test higher leverage offerings (10x and above) for Perp Pools, before offering higher leverage on more volatile markets like ETH/USD and BTC/USD. If this proposal is successful, the EUR/USD price feed will be used to create DAO approved markets for 3x-L/S and 1x-L/S.

Execution

Chainlink offers an EUR/USD Oracle on Arbitrum, it is currently used by Handle.Fi. This should make it possible for the pool itself to be deployed with relatively little effort. Seed liquidity should be incentivized with TCR liquidity mining rewards, in the same way liquidity is already incentivized for ETH/USD and BTC/USD pools. A specific reward schedule may be determined following a vote on whether a EUR/USD Perp Pool should be added.

If the Tracer Discourse community is open to adding a EUR/USD Perpetual Pool, we should move to a Snapshot vote.

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Interpretation

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, others may formally document aspects of this Proposal.

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Copyright Waiver

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