Tracer DAO will integrate Chainlink Price Feeds to secure its permissionless derivatives contracts
Tracer DAO is excited to announce an upcoming integration of Chainlink Price Feeds as the default oracle solution for our permissionless financial contract infrastructure. The initial integration will include the use of Chainlink Oracles to support Tracer DAO’s derivatives contracts on Arbitrum.
Chainlink’s high-quality, tamper-proof price oracles are critical to securing several on-chain functions, most notably:
- maintenance of margin;
- verification of liquidations;
- and calculation of funding rates.
Because Tracer markets feature risk-free liquidations, the contracts need more than just the index price; they also need the current fast gas price and the price of ETH in USD (or whatever the market settles in). These liquidations leave traders with more equity and ensure that liquidators make money, representing a win-win scenario.
Chainlink Price Feeds not only strengthen the precision and robustness of Tracer’s derivatives markets, but they have a proven track record of delivering reliable price updates on-chain despite flash crash outliers, API downtime, and oracle manipulation attacks. Combining Chainlink’s time-tested reliability and wide collection of Price Feeds across many asset classes, the creation of derivatives markets for any provided data feed just became a thrilling possibility for DeFi users.
Tracer Unlocks Digital and Real World Markets with Chainlink Oracles
Tracer allows users to ‘trace’ any digital or real-world market with an oracle and form simple derivative agreements. By porting existing price data on-chain and creating definitive truth through crypto-economic guarantees, many new local and global markets can be formed that meaningfully enable both individuals and firms to manage their risk. Rather than being at the mercy of fluctuating fuel prices, consumers can now lock in their fuel price with an easy-to-use derivative contract. With quick, zero-permission deployment for perpetual swaps, Tracer can capture markets as soon as there is a trusted price oracle.
Tracer DAO is acutely aware of the importance of having accurate, up-to-date, and manipulation-resistant off-chain data being fed to on-chain contracts. Market creators should not trust trader funds with any subpar price feeds. With Chainlink Price Feeds already securing tens of billions of dollars of value across DeFi, it makes for the obvious oracle solution for Tracer DAO, showcasing our firm commitment to providing users with best-of-class data.
Some of the major benefits of Chainlinking Tracer’s derivatives markets include:
- High-quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price
data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant
oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have
a strong track record for reliability, even during high gas prices and extreme network congestion.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
- Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools such as Chainlink Oracle Reputation that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
The integration of Chainlink oracles with Tracer will enable new derivative markets to be pioneered and unlocked by anybody with an internet connection. As market demand reaches a point where the price of data is cheap enough to warrant a derivative agreement, Tracer will utilize Chainlink to source and deliver this data on-chain to open up new and exciting derivatives markets. By working together to develop feeds, “Chainlink will help Tracer unlock markets that enable people to manage their everyday financial risk…” says Mycelium Co-Founder Patrick McNab, “…Chainlink is unrivalled in its offering of reliable and exotic data feeds, and Tracer is eager to scale alongside support from its oracle services.”
The ETH/USD perpetual swaps are set to drop on the Arbitrum mainnet in the coming months.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
Tracer is an open-source, smart contract protocol for derivatives. Arriving on Arbitrum mainnet in the coming months, Tracer’s Perpetual Swaps are fully decentralised and highly capital efficient. Key characteristics include market-specific insurance, permissionless market deployment, and risk-free liquidations. You can read more about Tracer’s Perpetual Swaps in the whitepaper.
Be sure to check in here regularly for announcements, hang out with the community in the Discord, get updates on Twitter, learn more about the activity of Governance on Discourse and go deep with us on GitHub.