Summary

Discourse link: here

On 27 January 2021, Mycelium (formerly referred to as Lion’s Mane) posted an offer on GitHub to perform certain services for Tracer DAO. On 10 February 2021, that offer was accepted, via Proposal and vote, by Tracer DAO. On 14 July 2021, Mycelium's updated offer was accepted. On 1 November 2021, Mycelium’s 2nd updated offer was accepted.

Since that time, the Tracer DAO has grown significantly, including the following key developments:

1. Completion of a second audit of the Perpetual Pools codebase with Runtime Verification;
2. Engaging major strategic advisors for Tracer DAO (to be announced after v2 launch);
3. Reached $50M USDC TVL on the Perpetual Pools financial contract;
4. Launched the first FX market on Perpetual Pools - EUR/USD;
5. Launched additional markets on Perpetual Pools including TOKE/USDC & LINK/USDC;
6. Launched the first alternative collateral market on Perpetual Pools - AAVE/USD (FRAX as collateral);
7. Achieved a DeFi Safety review score of 85% - being listed amongst the top 25 most secured protocols that have been reviewed by DeFi safety;
8. Engaged Risk Harbor to provide insurance protection for Perpetual Pools users;
9. Diamond Sponsorship for Tracer DAO at Permissionless Conference 2022; and
10. MetaLite Sponsorship for Tracer DAO at ETHDenver Conference 2022 (and after-party sponsorship).

As reported in Mycelium’s third quarterly report, Mycelium incurred U$586,679.92 in connection with its delivery of services from 31 July 2021 to 31 October 2021.

As per the forecast in quarter 3, it was expected that our costs for quarter 4 and Q1 2022 would significantly increase. Our costs have increased by approximately 20% compared to what was forecasted. Additionally, our cost forecast for Q1 2022 is estimated at approximately U$1.9m per quarter due to further resource allocation in the following areas:

1. Software Development hires (4);
2. Product Development hires (5);
3. Business Development hires (3); and
4. Ecosystem/Community hires (3).

In the coming months, we are looking to support the following strategic goals:

1. Assisting Tracer DAO to Launch Perpetual Pools v2 financial contracts (and supporting versioning updates);
2. Assisting Tracer DAO to launch a ‘skew farming’ vault to support the Perpetual Pools v2 contracts to minimise volatility decay; and
3. Growing Tracer DAO’s decentralised working environment to fund more projects within the DAO that contribute to Tracer’s community, products, business development, design and engineering teams.

We are currently finalising Mycelium's Q4 2021 & Q1 2021 report to Tracer DAO and will publish it in the Discourse at the end of Q1 2022 as a combined report, incorporating the first quarter of 2022.

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Updates

In accordance with the Proposal engaging Mycelium, and to assist Mycelium to execute upon these strategic goals, Mycelium requests:

1. The current remuneration of USD$500,000.00 (or equivalent) per month (or part thereof) is increased to USD$650,000.00 (or equivalent) per month (or part thereof) starting on the day that a Proposal implementing this Proposal is executed and ending when Mycelium is no longer engaged by the DAO, to be paid on the last day of each calendar month. If a payment does not occur because the DAO has insufficient funds, the amount of that payment will accrue and be paid to Mycelium when the DAO has sufficient funds to pay for that calendar month.

It is expected that all other aspects of Mycelium’s engagement, detailed in the Proposal passed on 12 February 2021, including amendments made on 12 July 2021 and 28 October 2021 will remain the same.

Next Steps

In order for this proposal to take effect, it must be pushed to Snapshot DAO members and that Proposal must succeed.

We encourage the discussion of this proposal in the comments below.

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Deliverables and Commitments

If this proposal succeeds, Mycelium’s Deliverables and Commitments, as outlined in the Proposal passed on 10 February 2021 as well as the updated proposals passed on 14 July 2021 and 1 November 2021, will remain the same.

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Variation and Termination

1. Mycelium acknowledges that, if engaged, the DAO may terminate or vary its engagement in accordance with:
   1. future Proposals and performance;
   2. the Deliverables specified above;
   3. a material breach of any term of the Agreement which breach is not capable of being remedied or (if such a breach is remediable) fails to remedy that breach within 10 days of receipt of notice from the DAO in writing to do so; and
   4. any repeated breaches of the terms of the agreement in such a manner as to reasonably justify the opinion that its conduct is inconsistent with it having the intention or ability to give effect to the terms of this agreement.

Termination of the Proposal shall not affect any of the parties’ rights and remedies that have accrued as at the date of termination. Furthermore, any termination of this agreement shall not e effective unless the agreement either expires, all things required to be done by the Proposal are completed or it is terminated by a further proposal of the DAO.

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Conflicts of Interest

In the context of the Tracer Project, conflicts of interest include:

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

Mycelium wishes to declare the following conflicts of interest:

1. It is an existing Service Provider to Tracer DAO and holds TCR tokens.

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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 their 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: 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.

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Indemnity

Mycelium shall keep the DAO fully indemnified against direct liabilities, costs, expenses, damages and losses suffered or incurred by the DAO as a direct result of:

1. any claim against the DAO for actual or alleged infringement of a third party’s intellectual property rights arising out of, or in connection with, the receipt, use or supply of the Deliverables, to the extent that the claim is attributable to the acts or omissions of Mycelium, its employees, agents or subcontractors; and
2. any claim made against the DAO by a third party arising out of, or in connection with, the supply of the Deliverables, to the extent that such claim arises out of the breach, negligent performance or failure or delay in performance of the Proposal by the Mycelium, its employees, agents or subcontractors.

Mycelium provides no indemnity for indirect or consequential losses, loss of profit, loss of reputation, product recall costs, and all interest, fines, penalties, and legal costs (calculated on a full indemnity basis) and any other professional costs and expenses.

This clause will survive termination of the Proposal.

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Copyright Waiver

Copyright and related rights are waived pursuant to CCO