What Is Mycelium?
Mycelium is a derivatives protocol, previously known as TracerDAO, that offers two main products: perpetual pools and an oracle-based spot/margin trading decentralized exchange (DEX).
Background
Originally TracerDAO, Mycelium has evolved to offer a unique structure for leveraged tokens and a forked oracle-based DEX from GMX’s codebase. The protocol uses a function known as Power Leverage and Oracle price feed to facilitate trading.
How It Works
At its core, Mycelium relies on perpetual pools, a derivative structure for leveraged tokens that enable the transfer of value between the long and short sides of the pool. This transfer of value is determined by the Power Leverage function, which can use any price or data feed as input. This function acts similarly to a funding rate used in perpetual swaps.
Mycelium also operates an oracle-based DEX, a modified version of GMX’s codebase. The protocol uses a liquidity pool of 50% stablecoins and 50% tokens such as ETH and BTC to provide liquidity for all spot and levered trades. Oracle price feeds determine the execution price for these trades.
Key Takeaways
- Mycelium, formerly TracerDAO, is a derivatives protocol offering two main products: perpetual pools and an Oracle-based spot/margin trading decentralized exchange (DEX).
- Perpetual pools are a derivative structure for leveraged tokens, enabling the transfer of value between the long and short sides of the pool. The transfer of value is determined by a function known as ‘Power Leverage.’
- The Power Leverage function can use any price or data feed as input, acting as a rebalancing mechanism similar to a funding rate used in perpetual swaps.
- Mycelium’s DEX is a modified version of GMX’s codebase, using a liquidity pool consisting of 50% stablecoins and 50% tokens, such as ETH and BTC, to provide liquidity for all spot and levered trades.
- Oracle price feeds determine the execution price for trades on Mycelium’s DEX.
