We adopt a similar "Instant Swap" structure as what we currently have on the BNB Chain and Ethereum, and use one AMM pool to satisfy the need for both staYETH and turYETH swaps.
staYETH-wstETH AMM Pool
For liquidity providers, we support providing liquidity in single assets and pairs. When removing liquidity, make sure to tick the box of "Receive in stETH" if you want to withdraw in the form of stETH, otherwise the default staked ETH token would be wstETH:
staYETH in the liquidity pool still collects the fixed APR. LPs receive additional CHESS emissions allocated to the pool. The weekly governance voting decides the specific allocation percentage.
Instant swap for turYETH
Put in the desired amount of turYETH you want to buy or sell, and let us do the rest for you. To complete the swap without the turYETH AMM pool, this is what's happening behind the scenes:
Tranchess collects the wstETH user pays and borrows wstETH from the staYETH-wstETH pool. These wstETH are used in the Primary Market to create wstQUEEN, which is then split into staYETH and turYETH. The staYETH is returned to the staYETH-wstETH pool and turYETH to the user's wallet.
Under extreme circumstances, when everyone's swapping for turYETH, staYETH could be trading at a discount in the AMM pool.
Tranchess borrows staYETH from the staYETH-wstETH pool. Combining with the turYETH that the user is selling, these assets are merged into wstQUEEN, which is redeemed in the Primary Market for wstETH. After sending to the user their amount of wstETH, the remainder would be returned to the staYETH-wstETH pool.
Under extreme circumstances, when everyone's selling turYETH for wstETH/stETH, staYETH could be trading at a premium in the AMM pool.
0.05%, of which 80% goes to liquidity providers, 10% to treasury, and 10% to veCHESS holders in the form of rebates.