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Why developing Tranchess?
We developed Tranchess because we saw the market's need and wanted to use such a protocol to help better manage our portfolios while making crypto investments.
Why launch on BSC?
BSC has been booming with activities. It’s EVM compatible and has a block time of around 3 seconds. We believe launching on BSC can decrease users’ cost of gas fee and the waiting period between each transaction.
What's the relationship between different underlying assets?
Each underlying asset has its own fund/asset pool. Right now Tranchess has launched two separate funds, a BTCB tracking fund and a ETH tracking fund. The two funds operate separately, following the same mechanism. Each fund has its own set of QUEEN/BISHOP/ROOK tokens and NAV values.
The Rebalance of one fund would not affect the other one.
Your share of veChess applies to all funds.
What is Token QUEEN?
Token QUEEN is the token for the main tranche, or main fund, as the old-school financial industry might call it. Each Token QUEEN represents one share of the main fund. The main fund is an asset tracking index fund. QUEEN’s Net Asset Value (NAV) tracks the underlying asset's price on a fully correlated basis*.
Right now Tranchess has two main funds, the BTCB fund and the ETH fund, thus two QUEEN tokens, bQUEEN and eQUEEN.
Rather than holding BTCB or ETH passively, investors can now swap their assets for token QUEEN via a ‘creation process’ or buy from the “Swap” with USDC. In doing so, they will have the same underlying asset exposure and, alongside the ability to farm Tranchess’s CHESS tokens for further yield enhancement. CHESS is also key to receiving an additional rebate from fees collected within Tranchess.
(* with deduction of management fees.)
What is Token BISHOP?
You can think of Token BISHOP as a USDC yielding product. Token BISHOP holders collect interest at a specific interest rate that changes every week. Every week, the protocol reads the USDC interest rate from Venus and adds a premium determined by community voting to the rate. The total becomes BISHOP's next week's fixed interest rate.
The interest rate of bBISHOP and eBISHOP are calculated separately.
What is Token ROOK?
Tranche ROOK is the other half of the split main tranche. It is a leveraged product with no forced liquidation. Token ROOK holder borrows daily from Token BISHOP holder to buy the main fund that tracks the underlying assets. Token ROOK holder receives all gains and losses of the main fund, i.e., Token ROOK's return = the profits and losses of the main fund - the interest paid to Token BISHOP. Tranche ROOK realizes a leveraged portfolio by borrowing equity from Tranche BISHOP. Tranche ROOK does not run the risk of forced liquidation, unlike leveraged products currently on the market, because it is borrowing from within the main tranche.
What’s the relationship between QUEEN, BISHOP, ROOK, and Tranchess in general?
Tranchess is the protocol with which one can create many different funds, each tracking a different set of crypto assets. Tranchess 1.0, the first fund we issued with Tranchess protocol, is a fund tracking the price of BTCB/USDC. The second fund, launched on Nov. 2, 2021, is a fund tracking the price of ETH/USDC.
Token QUEEN is the token for the main fund. Each Token QUEEN represents one share of the main fund. Token QUEEN can be further split into/merge from two sub-tranches, Token BISHOP and Token ROOK.
What’s the target group for Token QUEEN? Why will they find it attractive to hold Token QUEEN?
Token QUEEN is designed for long-term crypto asset (i.e., BTC) holders. For those who have BTC, converting BTC into Token QUEEN allows them to stake the token and harvest CHESS; for those that want to buy BTC, Tranchess main fund is much more flexible than other BTC tracking funds because it has no lock-up period and only takes up to 24 hours to process requests.
What are the fees?
How are the fees calculated for different asset pools?
Each underlying asset pool charges its own fees separately. The rates are the same. For detailed rates please refer to the previous FAQ question.
Why do I have the same number of QUEEN, BISHOP, and ROOK tokens in my wallet under Primary Market and Staking functions but different numbers of the three tokens under Swap function?
Since users need to stake their tokens before they can trade them in Tranchess Swap, the number of tokens shown in the wallet under the Swap function is the amount already staked in the protocol. The number shown in the wallet under Primary Market and/or Staking function is the number of tokens that haven't been staked in the protocol.
Last modified 8d ago
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Contents
Why developing Tranchess?
Why launch on BSC?
What's the relationship between different underlying assets?
What is Token QUEEN?
What is Token BISHOP?
What is Token ROOK?
What’s the relationship between QUEEN, BISHOP, ROOK, and Tranchess in general?
What’s the target group for Token QUEEN? Why will they find it attractive to hold Token QUEEN?
What are the fees?
How are the fees calculated for different asset pools?
Why do I have the same number of QUEEN, BISHOP, and ROOK tokens in my wallet under Primary Market and Staking functions but different numbers of the three tokens under Swap function?