Introduction of the 3AC-based DeFi protocol tranche for tracking Bitcoin performance

Jul 22, 2021

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.

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