How to swap in between

There are two ways to convert your STONE into Tranchess STONE tokens or vice versa.

Direct swap

If you click on "Start with STONE" on the front page, you will be redirected to the swapping page, where you can choose to swap turPSTONE and/or staYSTONE with STONE, and provide liquidity to the staYSTONE-STONE pool.

Swap between staYSTONE, turPSTONE and STONE:

Earn a basket of points and yield by providing liquidity:

💡How do Tranchess achieve instant swap for turPSTONE without a turPSTONE AMM pool?

Buying turPSTONE

Tranchess borrows STONE from the staYSTONE-STONE pool. These STONEs, together with the ones users paid, are used in the Primary Market to create stoneQUEEN, which is then split into staYSTONE and turPSTONE. The staYSTONE is returned to the staYSTONE-STONE pool and turPSTONE to the users.

When most users are swapping for turPSTONE, staYSTONE could be trading at a discount in the AMM pool.

Selling turPSTONE

Tranchess borrows staYSTONE from the staYSTONE-STONE pool. Combining it with the turPSTONE that the user is selling, these assets are merged into stoneQUEEN, which is redeemed in the Primary Market for STONE. After sending the user their amount of STONE, the remainder is returned to the staYSTONE-STONE pool.

When most users are selling turPSTONE for STONE, staYSTONE could be trading at a premium in the AMM pool.

Trading Fee

0.05%, of which 80% goes to liquidity providers, 10% to treasury, and 10% to veCHESS holders in the form of rebates.

"Fair Value" vs. "Traded Price"

The prices on the website for turPSTONE and staYSTONE are the current traded prices, which means that for anyone who wants to swap between STONE and truPSTONE/staYSTONE, this is the price that will be applied to their trades (not taking into account the potential slippage and price impact of the AMM pool).

turPSTONE and staYSTONE have another set of "pricing systems": the Fair Values. Fair value only calculates the interest earned/paid over time. You will see how much the current traded price deviates from its fair value when you place the order:

With an interest rate of 6%, when the fund ends, each staYSTONE will have a fair value of around 1.03. When staYSTONE is trading at a discount (i.e., its traded price is lower than its current fair value), its actual yield will be higher than 6%. For example:

Assume on day 1, the price of staYSTONE is 0.9 STONE, the actual yield (calculated in simple interest) will be (assume the fund lasts for 180 days exactly):

1.03/0.9118036529.29%\frac{(1.03 / 0.9 - 1)}{180} * 365 \approx29.29\%

At any time before the fund is over, staYSTONE's implied yield is:

FinalFairValue/currentTradedPrice1FundRemainingDays365\frac{(FinalFairValue /currentTradedPrice - 1)}{FundRemainingDays} * 365

Primary Market

If you don't want to do any actions and just want to hold STONE for yield and points, consider creating stoneQUEEN with STONE and split it into turPSTONE and staYSTONE => it will instantly change your point multiplier from 1x to 2x, without essentially changing anything.

You can access the primary market page via the dropdown on top or the tab under Swap page:

Since there is no fee for creating/redeeming or splitting/merging, the primary market page gives users more flexibility when adjusting their portfolios with zero loss.

When the fund ends

All tokens will be converted back to STONE based on their fair value, specifically:

  • stoneQUEEN: 1:1

  • turPSTONE and staYSTONE:

    • the fair values of turPSTONE and staYSTONE don't calculate their points and consider only their yield and cost on the platform.

    • staYSTONE 's fair value calculates its fixed interest earning, generating a fair value of about 1.03, i.e., every staYSTONE will be converted into 1.03 STONE.

    • turPSTONE's fair value calculates its cost of holding all staYSTONE point-earning shares, generating a fair value of about 0.73, i.e., every turPSTONE will be converted into 0.73 STONE.

    • Note: the numbers above are rough estimates for illustration purposes only. The exact figures will be announced when the fund approaches the ending date.

Fees and costs

Creation/Redemption: 0

Split/Merge: 0

Trading fee: 0.05%

Protocol fee: 3% on turPSTONE points.

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