and the sidechain polygon so here we go we're taking a look at tracer's perpetual pools and to start with we should look at what tracer actually is well tracer is a dao and it's a dao whose main purpose is to create financial products particularly derivatives products that leverage blockchain blockchain technology to provide censorship resistant market connectivity powering the next generation of finance so it's an ecosystem of different financial products you've got mms you've got futures you've got perpetual swaps you've got prediction markets and there's just a bunch of people connected to that who are experts in one particular part of it could be designing smart contracts it could be working with oracle feeds it could be just you know dNUMBER_TOKEN traders who are very very very advanced at what they do they can all plug into the tracer down contribute to contracts and to products that the dao is putting out and once the contract has been deployed it's completely permissionless unless it's been designed not to be but fundamentally you can't change it and anyone can interact with it that's kind of profound that's what tracer is all about so one of the fun things that i discovered with tracer is their perpetual swaps contract was audited by sigma prime now that may not mean anything to you but sigma is probably the most noteworthy auditor anywhere in the blockchain space if you get your contracts ordered by sigma prime not only does it take a very very very very long time and not only is it very very very very expensive but they're the best that doesn't mean that they're bulletproof by any means but if you see sigma prime it's a pretty good sign that whoever's behind the project knows what they're doing and is prepared to pay for the best people in the business to audit their contracts one of the fun things about the contract as well is that they are they executed the service agreement with a digital signature that was encoded into an ethereum hash i believe that's the first time that's ever been done so the perpetual pool it's just a way of going long or short on an underlying asset so it could be bitcoin it could be ethereum and you can use leverage as well here's the thing you can't be liquidated and how is that possible but we'll get into that in a bit it is somewhat complicated it's also fully collateralized so whatever's behind the contract is fully collateralized so it's usdc in this case so the uscc is in the pool it's there it's fully fungible so you can create tokens long or short tokens and then you can take those and interchange them one for another and you can also stake them and swap them on unit swap and trade them on the secondary market and it's perpetual so this contract never expires it just continues for as long as you want it to continue which is up to you so here's how it works you have essentially a financial contract between those who want to go long and those who want to go short and that financial contract determines the transfer of value between the longs and the shorts and this is based on an underlying price fee we'll get into where that price free comes from later on so you have a long side which is represented by an l token you have a short side which is represented by an s token
START_SPONSOR_TOKEN and the sidechain polygon END_SPONSOR_TOKEN