Instant Swap - Ethereum
AMM pools for BISHOP, ROOK, qETH and CHESS.
There are three AMM pools and one instant swap for ROOK.
Two on the Tranchess platform:
One on Balancer:
One on Uniswap V3:
Some might have noticed, Tranchess provides two sets of prices under BISHOP & ROOK Swaps for users' references: Fair Value and Price.
"Fair Value" is the NAV of BISHOP and ROOK, calculated and updated real time. "Price" is the actual price level the BISHOP/ROOK token is trading in the specific AMM pools. "Fair Value”, or the two tokens' NAVs, act as a reference in the swaps.
AMM pools charge 0.1% transaction costs in the form of USDC for every swap. 80% of the transaction cost goes directly to the liquidity providers, while the other 20% goes to the Tranchess treasury and joins Tranchess' weekly rebate program for all veChess holders who have enrolled.
Tranchess automatically chooses the optimal route between Uniswap V2 and Uniswap V3 for the most cost-effective transaction route.
- Buying eROOK.
Alice wants to swap for 1 eROOK. She enters the amount and approves the transaction, the corresponding amount of USDC then gets deducted from her account and she receives the eROOK token instantly.
Behind the transaction, one of the two scenarios could happen depending on the route the transaction takes:
- Uniswap V2: Tranchess automatically borrows a corresponding amount of eBISHOP from the eBISHOP-USDC pool and swaps it into USDC. The USDC, together with the USDC deducted from user's wallet, swaps WETH from Uniswap V2 (or other external AMMs in the future). The WETH is created from Tranchess' primary market or swaped via Balancer V2 into qETH, and then split into eBISHOP and eROOK. eROOK is what Alice would receive in this transaction, and eBISHOP would be returned back into the eBISHOP-USDC pool.
- Uniswap V3: with the design of Flash Swap, Tranchess is able to first "borrow" a certain amount of USDC, which together with user's USDC, swaps into WETH from Uniswap V3. The WETH goes through the same process as illustrated above. While users receive their desired amount of eROOK, eBISHOP is swapped into USDC via Tranchess' own BISHOP swap. The USDC is then "returned" into Uniswap V3.
Under extreme circumstances when everyone's swapping for ROOK in a bullish market, the corresponding BISHOP could be trading at a discount in its AMM pool.
- Selling eROOK.
Bob wants to sell 1 eROOK. After he approves the transaction, the 1 eROOK is deducted from his account with the corresponding USDC added to his balance.
Behind this one click of approval:
- Uniswap V2: Tranchess automatically swaps for eBISHOP from the BISHOP pool and merges with Bob's eROOK token to form qETH. It then redeems the qETH or swaps from the Balancer pool and swap the WETH in Uniswap V2 for USDC. Some of the USDC is added to Bob's balance based on eROOK's market price, which is what Bob saw in his account at the beginning of this example. The rest of the USDC is added back to the eBISHOP-USDC AMM pool.
- Uniswap V3: with the design of Flash Swap, Tranchess is able to first "borrow" a certain amount of WETH and swaps into USDC from Uniswap V3. Some of the USDC is added to Bob's balance based on eROOK's market price. The rest of the USDC swaps for eBISHOP from the eBISHOP-USDC AMM pool. The eBISHOP is then merged with Bob's eROOK into qETH. The qETH is redeemed or swaped from Balancer's pool back to WETH and eventually "returned" into Uniswap V3.
Under extreme circumstances when everyone's selling ROOK for USDC in a bearish market, the corresponding BISHOP could be trading at a premium in its AMM pool.