Three Arrows Capital CEO Su Zhu has announced the launch of the Decentralized Financial Protocol (DeFi) Tranchess.

Tweet On Thursday, Zhu described Tranchess as a protocol for “Cryptocurrency Management and Derivatives Trading”.

While the project is supposed to be a multi-chain and multi-asset DeFi protocol whose designs are supposed to be a decentralized autonomous organization, the first version of Tranchess focuses on Bitcoin (BTC).

Tranchess 1.0 provides access to a BTC price-performance tracker based on correlation. Since the first start of the project is on BSC, users will need BTCB – the BEP2 version of Bitcoin.

According to the project’s whitepaper, users are swapping BTCB for QUEEN – the primary native token. Alternatively, investors can buy QUEEN with USD Coin (USDC) on supported exchanges.

Ownership of the QUEEN token enables users to participate in a protocol or tranche-side fund. According to the chess theme, the secondary funds are called BISHOP and ROOK. Investors simply split their QUEEN tokens into BISHOP and ROOK on a 50-50 basis.

According to Zhu’s tweet, farming on Tranchess allows a single asset to be wagered against temporary loss. “If you hold BTC, you create a queen token. If you hold USDC you create a bishop token, ”added the 3AC head on the Twitter thread.

In addition to farming, there is the option of entering into a leveraged long position on Bitcoin using the ROOK token. However, Zhu emphasized: “There was neither a forced liquidation nor an increase in financing costs.”

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Where exchanging BTCB for QUEEN is known as the “generation step”, Tranchess users can also go the other way by exchanging their QUEEN token for BEP2 Bitcoin – the “buyback” step. Previously, the user would merge the BISHOP and ROOK tokens back into a complete QUEEN “coin”.

In July, Tranchess guaranteed $ 1.5 million in seed capital from well-known donors such as 3AC, Spartan Group, IMO Ventures, Longhash Ventures and Binance Labs.