Rebalance

What is Rebalance?

Rebalance is the action of resetting the NAVs of Token QUEEN, BISHOP and ROOK back to 1. The amount of these three tokens under each address might also change to reflect the adjustment. Rebalance is triggered when
NAVRook/NAVBishopNAV_{Rook} / NAV_{Bishop}
is below 0.5 or over 2.

Will the Rebalance of one underlying asset affect the others?

No. BTCB, ETH and BNB are three separate funds. Although they follow similar mechanism, the NAVs of bQ/B/R, eQ/B/R and nQ/B/R are calculated separately, so is the Rebalance.

Why Rebalance?

Rebalance is designed for the following reasons:
  • During extreme events when market drops drastically, the earnings of BISHOP might be threatened. To protect the earning of BISHOP, Rebalance is triggered.
  • During extreme events when market drops drastically, ROOK's NAV would experience an expedited drop as the leverage ratio increases sharply. To stop the sharp depreciation of ROOK and restore the proper leverage ratio, Rebalance is triggered.
  • When the market price of the underlying asset rises, the leverage ratio of ROOK decreases. To restore a proper leverage rate for ROOK, Rebalance is triggered.

Does Rebalance happen immediately after the NAV ratio hits the thresholds?

No. Rebalance happens only during daily settlement time. That is to say, if the NAV ratio hit the thresholds during the day but was within the range of 0.5~2 when the protocol conducted daily settlement, there will be no Rebalance.

Will Rebalance change the amount of CHESS tokens in my account?

No. The CHESS tokens in your wallet will not be affected by Rebalance.

When can I transfer my QUEEN, BISHOP and ROOK tokens between addresses after Rebalance?

Users can transfer their QUEEN tokens immediately after Rebalance. BISHOP and ROOK tokens will be transferable 30 minutes after Rebalance.

When will Tranchess functions resume after Rebalance?

All functions are running as normal immediately after Rebalance in Tranchess V2, including staking/unstaking, AMM swapping and so on.

Can I transfer my CHESS tokens between wallets during Rebalance?

Yes.

If all functions are working as normal right after Rebalance, why do I have to wait for 30 minutes for BISHOP and ROOK transfer?

In Tranchess V2's fund contracts, there's a parameter called activityDelayTimeAfterRebalance, which is set to 1800 seconds. This parameter is there mainly for one particular scenario: if a user would like to transfer BISHOP and ROOK from his/her WALLET address.
As we all know, for all on chain transactions there's always a gap between a user sending out a transaction request and the request finally got confirmed on chain. The waiting time could be very short or very long, depending on how congested the chain is at the time. If a user sent out a transfer request(from a wallet address) before Rebalance and the request was confirmed post-rebalance, the final transferred amount is likely to be different from the desired amount when the request was initially sent. In order to protect our users from such trouble, we set the activityDelayTimeAfterRebalance to 30 minutes so that, if a transfer request was sent out pre-rebalance and confirmed post-rebalance within the 30-minute window, the request would be reverted so users don't receive confusing amount of tokens.
QUEEN token transfers are not limited by the activityDelayTimeAfterRebalance setting. Users can transfer their QUEEN tokens between wallets immediately after Rebalance.
This 1800-second lock is ONLY for BISHOP and ROOK token transfers from wallet addresses, because wallet apps follow typical erc20 standards and there's not much "customized" adjustments we can do to cater the Rebalance design.
In the Fund contract, there are two functions "trancheTransfer" and "trancheTransferFrom" that can also be used to transfer QUEEN, BISHOP or ROOK tokens. These two functions have an additional "version" parameter and make sure its value equals to the number of historical Rebalances. With this additional check, the senario with a standard ERC-20 transfer mentioned above will not happen, and these two functions are not affected by Rebalance. All Tranchess smart contracts use these two functions to transfer QUEEN, BISHOP and ROOK tokens. Therefore, the Tranchess website and all contracts work as normal immediately after Rebalance.

Is there anything I need to do after Rebalance is triggered?

Boosting. Go to the Staking page and enroll again to keep your boosting momentum going.