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.
BNB Chain has been booming with activities. It’s EVM compatible and has a block time of around 3 seconds. We believe launching on BNB Chain can decrease users’ cost of gas fee and the waiting period between each transaction.
Each underlying asset has its own fund/asset pool. Right now Tranchess has launched three separate funds, a BTCB tracking fund, an ETH tracking fund, and a Alpha-enhanced BNB tracking fund. The three 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 others.
Your share of veChess applies to all funds.
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 three main funds, the BTCB fund, the ETH fund and the BNB fund, thus three QUEEN tokens, bQUEEN, eQUEEN and nQUEEN+.
Rather than holding the underlying assets passively, investors can now swap their assets for token QUEEN via a ‘creation process’. 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 protocol fees.)
You can think of Token BISHOP as a BUSD-yielding product. Token BISHOP holders collect interest at a specific interest rate that changes every week. Every day, the protocol reads the premium determined by governance voting and adds the premium to the 7-day averaged BUSD interest rate from Venus, which the protocol collects and updates every Thursday. The total becomes BISHOP's interest rate.
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.
Tranchess is the protocol with which one can create many different funds, each tracking a different set of crypto assets.
Token QUEEN is the token for the main fund. The number of token QUEEN is equivalent to the number of underlying BTCB/ETH/BNB a user holds in their account. Token QUEEN can be further split into/merge from two sub-tranches, Token BISHOP and Token ROOK.
Each underlying asset pool charges its own fees separately. The rates are the same. For detailed rates please refer to the previous FAQ question.