Tracer DAO Partners with Umami FinanceUmami Finance will utilise Perpetual Pools V2 to efficiently hedge treasury exposure
Tracer DAO is excited to announce that we’ve partnered with Umami Finance for the launch of Perpetual Pools V2 coming soon. Umami Finance will be using Tracer’s Perpetual Pools to hedge out exposure to parts of their treasury and provide more utility for $UMAMI. Here’s what it means for Tracer DAO.
Introducing Umami Finance
Umami Finance is a ‘Liquidity Network & Dividend protocol’. Also built on Arbitrum, Umami uses their wholly owned Treasury of ~$6 Million dollars to generate yield while investing into the Arbitrum Ecosystem. So far Umami’s treasury has been allocated to Dopex, GMX, Treasure DAO and other projects on Arbitrum. Umami boasts an engaged community with TVL on Arbitrum recently as high as $37 Million USD.
Umami Finance is entering Tracer's Perpetual Pools! The Umami treasury will provide liquidity in Tracer’s Perpetual Pools V2 contracts starting with an initial value of $250k USDC. Umami will be looking to then scale this initial amount to $1 million USDC (or equivalent) utilising the pools as well as strategies such as farming the skew. What’s more exciting is how Umami will utilise Tracer’s Perpetual Pools with these funds.
Umami will use Perpetual Pools to hedge their treasury’s exposure to ETH by taking a short position in the pools. Currently, Umami’s yield generating strategies exposes the treasury to ETH price risk. By deploying USDC into the 3S ETH pool, the Umami treasury will efficiently hedge out a sizeable portion (~600k) of the Umami treasury’s market risk whilst generating yield for Umami stakers via Marinate. Additionally, the position may accumulate >100% APR in TCR rewards. Umami strives to maintain a 0.5 Delta to the market and Tracer has been a preferred partner to achieve that hedge. To read more about what’s involved in the partnership, see Umami’s proposal here.
The partnership with Umami will also generate markets and opportunities for Tracer users to explore. $UMAMI holders will be able to utilise their $UMAMI as collateral to gain leveraged exposure to a range of assets once Perpetual Pools V2 is available.
Tracer DAO is excited to work with another Arbitrum-native project bringing more value to the layer 2 ecosystem. Join the Tracer community in Discord and follow us on Twitter to stay up-to-date on announcements. Soon after the launch of Perpetual Pools V2, all users will be able to deploy their own markets on Tracer using their choice of ERC-20 as settlement collateral to go long or short on any price feed available.
To learn more about Umami Finance - read here.
Follow Tracer on Twitter: https://twitter.com/TracerDAO
Join the community on Discord: https://discord.gg/tracerdao
Follow Umami Finance on Twitter: https://twitter.com/UmamiFinance
Join the Umami Finance community on Discord: http://discord.gg/arbis
The details provided in this article are for informational purposes only. The material should NOT be considered legal, investment, or financial advice. Tracer DAO and its representatives are not investment advisors and are not regulated by any financial services authority. You should consult with a financial advisor, lawyer, or other professional to determine what may be best for your individual needs.
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