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Tracer DAO Partners with Umami Finance

Umami 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.

What’s Involved

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.

$UMAMI Markets

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.

Get involved

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.

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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.

The reader bears responsibility for their own investment research and decisions. The material found here is not intended to be used as a basis for an investment decision nor is it to be construed as advice. No information is intended as securities brokerage, investment, tax, accounting, or legal advice. Nor is it intended as an offer or solicitation (including to buy or sell). In no way is anything found here to be taken as an endorsement, recommendation, or sponsorship of any company, security, trading model, product, market or fund.


Tracer Perpetual Pools V1 is currently live on Arbitrum One. Fully fungible, leveraged tokens for the DeFi economy, with no margin requirements and no liquidations.Read more

Launch Perpetual Pools