Difference between revisions of "Mycelium (MYC)"

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Mycelium is a [[derivatives]] protocol built on [[Arbitrum]]. The “[[Uniswap (UNI)|Uniswap]] of derivatives,” Mycelium designs [[google:tracer+dao+docs&oq=tracer+dao+docs&aqs=chrome.0.69i59.2108j0j4&sourceid=chrome&ie=UTF-8|templates]] for different types of [[On Chain|on-chain]] derivatives [[contracts]], which anyone can [[Permissionless|permissionlessly]] utilize to create a [[derivative]] for any [[token]] with a price feed.
==Basics==
==Basics==


*Based in:
*Based in:
*Started in / Announced on:
*Started in / Announced on: [https://docs.mycelium.xyz/introduction/readme 2019]
*[[Testnet]] release:
*[[Testnet]] release:
*[[Mainnet]] release:
*[[Mainnet]] release:  
*[https://pools.tracer.finance/ Tracer] is a [[derivatives]] protocol on [[Arbitrum]] that facilitates creating and trading leveraged tokens.


==History==
==History==
* Mycelium [https://forum.arbitrum.foundation/t/aip-1-arbitrum-improvement-proposal-framework/30 were] one of the first protocols deployed on Arbitrum in 2021 and support the Arbitrum ecosystem through running validators and [[Chainlink (LINK)|Chainlink]] nodes.
*Formerly known as Tracer DAO. TracerDAO [https://www.tracer.finance/radar/perpetual-swaps/ moved into] Mycelium and adding revenue sharing to MYC token holders (6-8-2022).
*Mycelium Perpetual Swaps is a [[fork]] of the [[GMX (GMX)|GMX]] codebase but [https://mycelium-xyz.medium.com/myceliums-response-to-gmx-exploit-bad353c86081 updated] the fees, revenue mechanisms, and markets for Mycelium Perpetual Swaps as a point of difference.
*[https://twitter.com/billybobbaghold/status/1555723945168568320 From] a Tracer [[Bullish|bull]] (6-8-2022):
''"Tracer was one of the first [[on-chain]] perps protocols on Arbitrum. The founders are $[[Chainlink (LINK)|LINK]] OGs who’ve run $[[LINK]] [[Node|nodes]] since close to inception."''
==Audits & Exploits==
==Audits & Exploits==


Line 19: Line 28:


===Bugs/Exploits===
===Bugs/Exploits===
* On January 7, 2023 multiple arbitrage bots took advantage of [https://mycelium.xyz/blog/post-mortem-of-recent-mlp-impact bad price oracle data] on Mycelium platform, which resulted in $300K losses to LPs.
==Governance==
==Governance==
===Admin Keys===
===Admin Keys===
Line 26: Line 38:
''"[https://docs.tracer.finance/tracer/governance#tracer-dao Governance] controls the protocol.''  
''"[https://docs.tracer.finance/tracer/governance#tracer-dao Governance] controls the protocol.''  


''a) All contracts are clearly labelled as upgradeable (or not) -- 30% -- the Factory contract/ market templates are labelled as upgradeable.''
''a) All contracts are clearly labelled as upgradeable (or not) -- 30% -- the Factory [[contract]]/ market templates are labelled as upgradeable.''
''b) The type of ownership is clearly indicated (OnlyOwner / MultiSig / Defined Roles) -- 30% -- the DAO is in full control''  
''b) The type of ownership is clearly indicated (OnlyOwner / [[MultiSig]] / Defined Roles) -- 30% -- [[the DAO]] is in full control''  
''c) The capabilities for change in the contracts are described -- 30% -- they are changed via a vote and have total control over the contract.''  
''c) The capabilities for change in the contracts are described -- 30% -- they are changed via a vote and have total control over the contract.''  


Line 38: Line 50:
===Token Allocation===
===Token Allocation===
===Utility===
===Utility===
* [[Governance]] and the protocol plans ([https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r 14-4-2022]) to transition to a vote-escrowed model in which lockers can vote on emissions to different perpetual pools.
===Other Details===
===Other Details===
===Stablecoin===
==Coin Distribution==
==Coin Distribution==
==Technology==
==Technology==


*[[Whitepaper]] or docs can be found [https://docs.tracer.finance/ here].
* [[Whitepaper]] or docs can be found [https://docs.mycelium.xyz/introduction/readme here].\
*Code can be viewed [https://github.com/tracer-protocol here]. 820 commits and 10 branches as protocol's development history (14-10-2021).
* Code can be viewed [https://github.com/mycelium-ethereum here]. 820 commits and 10 branches as protocol's development history (14-10-2021).


===Implementations===
===Implementations===


*Built on: [[Arbitrum]], [[Balancer (BAL)|Balancer]]
*Built on: [[Arbitrum]], [[Balancer (BAL)|Balancer]] ([https://medium.com/@BalancerGrants/tracerdao-is-building-on-balancer-again-31d5aadfcc02 5-2022])


===How it works===
===How it works===


* From their [https://mycelium-xyz.medium.com/myceliums-response-to-gmx-exploit-bad353c86081 blog] (19-9-2022):
''"Mycelium has always been aware that the risk that pricing according to [[Centralized Exchanges (CEX)|CEX]] [[liquidity]] creates. As such, we have already implemented preventative measures to avoid this market manipulation occurring on our platform. The largest two were:''
# ''Having a bid-ask spread which was inversely correlated to CEX liquidity depth;''
# ''Having tight maxgloballongsize and maxgloballongsize parameters which prevent toxic order flow, and/or significantly reducing the profit of traders who are manipulating CEX prices."''
* [https://yieldfarmer.substack.com/p/-farm-100-apr-via-tracer-staking?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NDk5MDIzNSwiXyI6IkN1L0RzIiwiaWF0IjoxNjM4NzY4ODQ0LCJleHAiOjE2Mzg3NzI0NDQsImlzcyI6InB1Yi0zODQ1MSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.xdA8iL6lrcv9SO From] [[DeFi Pulse|Yield Farmer]] (5-12-2021):
* [https://yieldfarmer.substack.com/p/-farm-100-apr-via-tracer-staking?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NDk5MDIzNSwiXyI6IkN1L0RzIiwiaWF0IjoxNjM4NzY4ODQ0LCJleHAiOjE2Mzg3NzI0NDQsImlzcyI6InB1Yi0zODQ1MSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.xdA8iL6lrcv9SO From] [[DeFi Pulse|Yield Farmer]] (5-12-2021):


Line 60: Line 80:
===Fees===
===Fees===
===Upgrades===
===Upgrades===
===Mining===
 
* [https://www.tracer.finance/radar/perpetual-swaps/ Moving into] [[Mycelium (MYC)|Mycelium]] and adding revenue sharing to MYC token holders (6-8-2022).
*[https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
 
''"There are several key upgrades brought about by the launch of V2. First, it will help to minimize the volatility decay of perpetual pools, i.e. increase the length of time in which it is safe to hold a position in one. In addition, V2 will allow for the creation of custom [[Oracle|oracles]] and pools that utilize any price feed, as currently the selection of tokens that are eligible to be used to create a perpetual pool are limited to those with a [[Chainlink (LINK)|Chainlink]] price feed."''
 
===Staking===
===Staking===
* From their [https://mycelium-xyz.medium.com/myceliums-response-to-gmx-exploit-bad353c86081 blog] (23-9-2022):
''"By depositing MYC into the vault at the beginning of each 14 day cycle, MYC holders will start earning rewards over the course of the fortnight. Staked MYC in the vault will earn an interest rate. This interest rate is sourced from 10% of Perpetual Swap fees generated in the previous fortnight of trading volume that goes to the Mycelium Treasury."''
====Validator Stats====
====Validator Stats====
===Liquidity Mining===
===Liquidity Mining===
Line 67: Line 97:
* [https://yieldfarmer.substack.com/p/-farm-100-apr-via-tracer-staking?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NDk5MDIzNSwiXyI6IkN1L0RzIiwiaWF0IjoxNjM4NzY4ODQ0LCJleHAiOjE2Mzg3NzI0NDQsImlzcyI6InB1Yi0zODQ1MSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.xdA8iL6lrcv9SO From] [[DeFi Pulse|Yield Farmer]] (5-12-2021):
* [https://yieldfarmer.substack.com/p/-farm-100-apr-via-tracer-staking?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NDk5MDIzNSwiXyI6IkN1L0RzIiwiaWF0IjoxNjM4NzY4ODQ0LCJleHAiOjE2Mzg3NzI0NDQsImlzcyI6InB1Yi0zODQ1MSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.xdA8iL6lrcv9SO From] [[DeFi Pulse|Yield Farmer]] (5-12-2021):


''"Right now, the Tracer project is running a [[Liquidity Mining|liquidity mining]] campaign for its TCR token. To join this program and start farming TCR, you have to mint leveraged tokens from the Perpetual Pools system and then [[Proof-of-Stake (PoS)|stake]] these tokens through Tracer.'' "
''"Right now, the Tracer project is running a [[Liquidity Mining|liquidity mining]] campaign for its TCR token. To join this program and start farming TCR, you have to [[mint]] leveraged tokens from the Perpetual Pools system and then [[Proof-of-Stake (PoS)|stake]] these tokens through Tracer.'' "


===Scaling===
===Scaling===
Line 73: Line 103:
===Other Details===
===Other Details===
==Oracle Method==
==Oracle Method==
==Privacy Method==
 
==Compliance==
* Mycelium [https://forum.arbitrum.foundation/t/aip-1-arbitrum-improvement-proposal-framework/30 were] one of the first protocols deployed on Arbitrum in 2021 and support the Arbitrum ecosystem through running validators and [[Chainlink (LINK)|Chainlink]] nodes.
* [https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
 
''"V2 will allow for the creation of custom [[Oracle|oracles]] and pools that utilize any price feed, as currently the selection of tokens that are eligible to be used to create a perpetual pool are limited to those with a [[Chainlink (LINK)|Chainlink]] price feed."''
==Their Other Projects==
==Their Other Projects==
==Roadmap==
==Roadmap==


*Can be found [Insert link here].
*Can be found [Insert [[LINK|link]] here].
*From their [https://mycelium-xyz.medium.com/myceliums-response-to-gmx-exploit-bad353c86081 blog] (19-9-2022):
''"Mycelium will be introducing additional measures and parameters to maximise the health of our protocol liquidity, and the safety of our [[Liquidity Provider (LP)|LPs]] funds. They are:''
 
''In the short term, we are going to do the following things:''
 
# ''Increase the spread on some long-tail assets to reflect existing market conditions on CEX orderbooks;''
# ''Reduce the maximum notional value size for certain long-tail assets ([[FXS]], [[Curve Finance (CRV)|CRV]], and [[Balancer (BAL)|BAL]]) for the time being;''
# ''Update the bid-ask spread on these market more frequently so that it conservatively reflects CEX liquidity on said asset;''
# ''Decrease the [[Chainlink (LINK)|chainlink]] price-binding threshold to 1.5%;''
# ''Maintain a conservative maxgloballongsize and maxgloballongsize for long-tail assets.''
 
''In the medium-long term, the solutions we will look to implement are as follows:''
 
# ''Introduce the bid-ask spread dynamic, and a function of CEX orderbook depth and/or;''
# ''Make the oracle pricing more robust via pricing it from more CEX venues (and potentially some algorithmic average of sample of CEX prices);''
# ''Make the max position size a function of CEX liquidity."''


==Usage==
==Usage==
* From a Balancer Grants [https://medium.com/@BalancerGrants/tracerdao-is-building-on-balancer-again-31d5aadfcc02 blog] (25-4-2022):
''"Tracer previously built on top of [[Balancer]] for their V1 release of Perpetual Pools, driving over $100m worth of volume through Balancer pools containing Tracer’s leveraged derivative tokens."''
*[https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
''"Tracer currently holds more than [https://defillama.com/protocol/tracer $12.26] million in [[Total Value Locked (TVL)|TVL]]."''
===Projects that use or built on it===
===Projects that use or built on it===
==Competition==
==Competition==
Line 90: Line 146:


*Full team can be found [https://www.afr.com/companies/financial-services/meet-the-defi-developers-who-ve-raised-funds-for-a-derivatives-system-20210628-p5850t here].
*Full team can be found [https://www.afr.com/companies/financial-services/meet-the-defi-developers-who-ve-raised-funds-for-a-derivatives-system-20210628-p5850t here].
*[[Patrick McNab]] is a Co-founder of Mycelium]
*[[Ryan Sean Adams]] and [[David Hoffman]]; disclosed themselves to be an advisor ([https://docs.google.com/spreadsheets/d/16XcKXcH5e4CDc-Qek4WN4FUBPpnViAhLGgvtXat7NBg/edit?ref=bankless.ghost.io#gid=0 28-4-2023])
*[https://twitter.com/billybobbaghold/status/1555723945168568320 From] a Tracer [[Bullish|bull]] (6-8-2022):
''"The founders are $[[Chainlink (LINK)|LINK]] OGs who’ve run $LINK [[Node|nodes]] since close to inception."''


===Funding===
===Funding===
* From a Balancer Grants [https://medium.com/@BalancerGrants/tracerdao-is-building-on-balancer-again-31d5aadfcc02 blog] (25-4-2022):
''"This overall grant will be split into two separate grants with important deliverables in each. The first grant will be for a total of $60K USD and will [[COVER|cover]] two tranches. 1) subsidising of developer resources for deploying V2 pools as highlighted above and 2) completion of the Aggregated [[Liquidity]] features (approximately mid / late May)."''
===Partners===
===Partners===
* [https://twitter.com/arbitrum/status/1592910829380579328 Became] a [[Whitelist|whitelisted]] validator on [[Arbitrum]] (16-11-2022).
==(:==
==(:==
Knowledge empowers all and will help us get closer to the [[decentralised|decentralized]] world we all want to live in!
Knowledge empowers all and will help us get closer to the [[decentralised|decentralized]] world we all want to live in!
Line 98: Line 167:
Making these free wiki pages is fun but takes a lot of effort and time.
Making these free wiki pages is fun but takes a lot of effort and time.


If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.
If you have enjoyed reading, tips are appreciated :) This will help us to [[keep]] expanding this archive of information.


[[ETH]] tip [[address]]: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31
[[ETH]] tip [[address]]: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31
[[Category:Coins/Tokens]]
[[Category:Coins/Tokens]]

Latest revision as of 08:37, 19 May 2023

Mycelium is a derivatives protocol built on Arbitrum. The “Uniswap of derivatives,” Mycelium designs templates for different types of on-chain derivatives contracts, which anyone can permissionlessly utilize to create a derivative for any token with a price feed.

Basics

History

  • Mycelium were one of the first protocols deployed on Arbitrum in 2021 and support the Arbitrum ecosystem through running validators and Chainlink nodes.
  • Formerly known as Tracer DAO. TracerDAO moved into Mycelium and adding revenue sharing to MYC token holders (6-8-2022).
  • Mycelium Perpetual Swaps is a fork of the GMX codebase but updated the fees, revenue mechanisms, and markets for Mycelium Perpetual Swaps as a point of difference.
  • From a Tracer bull (6-8-2022):

"Tracer was one of the first on-chain perps protocols on Arbitrum. The founders are $LINK OGs who’ve run $LINK nodes since close to inception."

Audits & Exploits

"Tracer underwent an audit before deployment, and all suggestions were acted upon."

With the comment: "Tracer's commitment to strong documentation is commendable given the relatively young age of this protocol. This is a protocol that is starting out on the right foot!"

Bugs/Exploits

  • On January 7, 2023 multiple arbitrage bots took advantage of bad price oracle data on Mycelium platform, which resulted in $300K losses to LPs.

Governance

Admin Keys

"Governance controls the protocol.

a) All contracts are clearly labelled as upgradeable (or not) -- 30% -- the Factory contract/ market templates are labelled as upgradeable. b) The type of ownership is clearly indicated (OnlyOwner / MultiSig / Defined Roles) -- 30% -- the DAO is in full control c) The capabilities for change in the contracts are described -- 30% -- they are changed via a vote and have total control over the contract.

Pause controls are mentioned on page 24 in the audit, but there is no mention of them in the documentation."

DAO

Treasury

Token

Launch

Token Allocation

Utility

  • Governance and the protocol plans (14-4-2022) to transition to a vote-escrowed model in which lockers can vote on emissions to different perpetual pools.

Other Details

Coin Distribution

Technology

  • Whitepaper or docs can be found here.\
  • Code can be viewed here. 820 commits and 10 branches as protocol's development history (14-10-2021).

Implementations

How it works

  • From their blog (19-9-2022):

"Mycelium has always been aware that the risk that pricing according to CEX liquidity creates. As such, we have already implemented preventative measures to avoid this market manipulation occurring on our platform. The largest two were:

  1. Having a bid-ask spread which was inversely correlated to CEX liquidity depth;
  2. Having tight maxgloballongsize and maxgloballongsize parameters which prevent toxic order flow, and/or significantly reducing the profit of traders who are manipulating CEX prices."

"At the heart of the protocol are its “Factories.” These specialized DeFi mechanisms are financial contract generators that store templates. These templates can then be deployed as “Tracers,” i.e. market instances.

Notably, the project’s first Factory is its Perpetual Pools architecture. The system lets users easily create x3 long or x3 short tokens, and more leverage options coming in the future. These leverage tokens are unique, in that they don’t expire and can’t be liquidated. Accordingly, these assets are ideal for traders who want to access leverage albeit in passive, straightforward fashion."

Fees

Upgrades

"There are several key upgrades brought about by the launch of V2. First, it will help to minimize the volatility decay of perpetual pools, i.e. increase the length of time in which it is safe to hold a position in one. In addition, V2 will allow for the creation of custom oracles and pools that utilize any price feed, as currently the selection of tokens that are eligible to be used to create a perpetual pool are limited to those with a Chainlink price feed."

Staking

  • From their blog (23-9-2022):

"By depositing MYC into the vault at the beginning of each 14 day cycle, MYC holders will start earning rewards over the course of the fortnight. Staked MYC in the vault will earn an interest rate. This interest rate is sourced from 10% of Perpetual Swap fees generated in the previous fortnight of trading volume that goes to the Mycelium Treasury."

Validator Stats

Liquidity Mining

"Right now, the Tracer project is running a liquidity mining campaign for its TCR token. To join this program and start farming TCR, you have to mint leveraged tokens from the Perpetual Pools system and then stake these tokens through Tracer. "

Scaling

Interoperability

Other Details

Oracle Method

  • Mycelium were one of the first protocols deployed on Arbitrum in 2021 and support the Arbitrum ecosystem through running validators and Chainlink nodes.
  • From Bankless (15-4-2022):

"V2 will allow for the creation of custom oracles and pools that utilize any price feed, as currently the selection of tokens that are eligible to be used to create a perpetual pool are limited to those with a Chainlink price feed."

Their Other Projects

Roadmap

  • Can be found [Insert link here].
  • From their blog (19-9-2022):

"Mycelium will be introducing additional measures and parameters to maximise the health of our protocol liquidity, and the safety of our LPs funds. They are:

In the short term, we are going to do the following things:

  1. Increase the spread on some long-tail assets to reflect existing market conditions on CEX orderbooks;
  2. Reduce the maximum notional value size for certain long-tail assets (FXS, CRV, and BAL) for the time being;
  3. Update the bid-ask spread on these market more frequently so that it conservatively reflects CEX liquidity on said asset;
  4. Decrease the chainlink price-binding threshold to 1.5%;
  5. Maintain a conservative maxgloballongsize and maxgloballongsize for long-tail assets.

In the medium-long term, the solutions we will look to implement are as follows:

  1. Introduce the bid-ask spread dynamic, and a function of CEX orderbook depth and/or;
  2. Make the oracle pricing more robust via pricing it from more CEX venues (and potentially some algorithmic average of sample of CEX prices);
  3. Make the max position size a function of CEX liquidity."

Usage

  • From a Balancer Grants blog (25-4-2022):

"Tracer previously built on top of Balancer for their V1 release of Perpetual Pools, driving over $100m worth of volume through Balancer pools containing Tracer’s leveraged derivative tokens."

"Tracer currently holds more than $12.26 million in TVL."

Projects that use or built on it

Competition

Pros and Cons

Pros

Cons

Team, Funding and Partners

Team

"The founders are $LINK OGs who’ve run $LINK nodes since close to inception."

Funding

  • From a Balancer Grants blog (25-4-2022):

"This overall grant will be split into two separate grants with important deliverables in each. The first grant will be for a total of $60K USD and will cover two tranches. 1) subsidising of developer resources for deploying V2 pools as highlighted above and 2) completion of the Aggregated Liquidity features (approximately mid / late May)."

Partners

(:

Knowledge empowers all and will help us get closer to the decentralized world we all want to live in!

Making these free wiki pages is fun but takes a lot of effort and time.

If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.

ETH tip address: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31