TracerDAO has announced a partnership with Umami Finance for the upcoming launch of Perpetual Pools V2. Umami Finance will use Tracer’s Perpetual Pools to hedge their treasury risk and give greater usefulness for $UMAMI.
Umami Finance describes itself as a ‘Liquidity Network & Dividend Protocol.’ Umami, which is also built on Arbitrum, generates income while investing in the Arbitrum Ecosystem with its completely owned Treasury of $6 million dollars.
So far, Umami’s treasury has been distributed to Dopex, GMX, TreasureDAO, and other Arbitrum initiatives. Umami has a thriving community, with TVL on Arbitrum recently reaching $37 million USD.
Umami Finance is now a member of Tracer’s Perpetual Pools. The Umami treasury will offer liquidity in TracerDAO’s Perpetual Pools V2 contracts beginning with a $250k USDC initial value.
Umami intends to increase this first investment to $1 million USDC (or comparable) by utilizing pools as well as tactics such as cultivating the skew. What’s even more intriguing is how Umami intends to use Tracer’s Perpetual Pools with these cash.
Umami will employ Perpetual Pools to hedge its treasury’s exposure to ETH by shorting the pools. Umami’s income generation tactics now expose the Treasury to ETH price risk.
By investing USDC into the 3S ETH pool, the Umami treasury will properly hedge out a significant percentage (600k) of the Umami treasury’s market risk while also earning income for Umami stakers via Marinate. Furthermore, the job may earn more than 100% APR in TCR incentives.
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