Summary

Discourse link: here

Tokemak offers its services to Tracer DAO (DAO) in order to work with the DAO on establishing a TCR reactor. A TCR reactor on Tokemak will strengthen liquidity for TCR trading pairs across trading venues and open up additional opportunities to leverage Tokemak.

To initialize a TCR reactor, Tokemak requires an operational reserve of TCR to be able to efficiently deploy TCR liquidity to trading venues (Uniswap, SushiSwap, 0x, Balancer) and make TCR LPs on Tokemak benefit from IL mitigation. This can be structured as set out in the Proposal below.

Through this Proposal, Tracer DAO will make $1.5M USDC in TCR available to the Tokemak reactor reserve by proceeding with the Collateral Trade, defined below.

Growth Fund Allocation

If successful, this proposal will draw TCR from the Growth Fund. As the Growth Fund is currently not implemented, this proposal will draw TCR from the DAO treasury. The amount of TCR will be deducted from the Growth Fund allocation.

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Consideration

For the provision of these services, the parties agree that within one day of this Proposal being approved that:

1. $1,500,000.00 notional value (USDC) of TCR will be sent by Tracer DAO to the Tokemak treasury; and

2. $1,500,000.00 notional value (USDC) of TOKE will be sent by Tokemak to the Tracer DAO treasury.

   (collectively, Collateral Trade)

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Deliverables

If engaged by a Proposal to provide the services described in this Proposal to the DAO, Tokemak will provide the following deliverables (Deliverables):

• Ensure that generalized liquidity is directed across the ecosystem, ensuring the best prices and minimal slippage for TCR trading.
• The services will create an opportunity for both TCR liquidity providers and Tracer DAO to earn additional rewards.
• Tokemak will initiate a reactor that will result in additional ways for Tracer DAO to leverage Tokemak, such as offering single-asset TCR staking to provide liquidity across major L1 DEXs. The services provided by Tokemak will offer the (optional) opportunity for tTCR staking in Tracer, with the following benefits:
  • single-asset stakers now become liquidity providers. This will increase TCR liquidity across DeFi;
  • a simplified process to provide liquidity. This lowers UX barriers and along with lower risk will increase the engagement of less-knowledgeable participants;
  • TCR, as the tTCR holder, would be the recipient of a sizable amount of TOKE rewards, which could be either used to further increase liquidity director power.

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Variation and Termination

1. Tokemak acknowledges that, if engaged, its engagement can be varied or terminated by future Proposals.
2. Tokemak expects that any engagement will be terminated if they fail to deliver in accordance with the Deliverables specified above.

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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.

Tokemak wishes to declare the following conflicts of interest:

1. Establishing reactors with four other teams as a result of the C.o.R.E voting: Frax (FXS), Alcehmix (ALCX), Olympus DAO (OHM) and Sushiswap (SUSHI). See results here: https://www.tokemak.xyz/; and
2. any potential future token reactors with other decentralised protocols.

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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, The parties may, at either party's election with seven days' written notice to the other, more formally document aspects of that Proposal.

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Copyright Waiver

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