Introduction

Tranchess, in simple terms, is a tokenized structured fund protocol. The protocol is inspired by structured funds that cater to users with varying risk appetite. Tranchess consists of three tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS. Each of the three tranches is designed to accede the needs of different group of users: stable return yielding (Tranche BISHOP), leveraged crypto asset trading (Tranche ROOK), and long-term crypto asset holding (Main Tranche QUEEN).

Tranchess 1.0 will be a fund that tracks BTC's performance directly. In theory, Tranchess can track any single crypto asset or basket of crypto assets.

About Tokens

QUEEN: QUEEN is created by depositing BTCB, ETH or BNB via the Primary Market of Tranchess. QUEEN is designed for long-term HODLERS of the underlying crypto assets and provides an additional yield that ranges between 2% to 16%, depending on the fund.

BISHOP: BISHOP is created by splitting QUEEN in the Primary Market of Tranchess. Every QUEEN token can be split evenly into 0.5 BISHOP and 0.5 ROOK. BISHOP is designed for investors who want to receive higher yields on their stable coins. BISHOP currently provides an APY between 7% to 22%, depending on the fund.

ROOK: ROOK is created by splitting QUEEN in the Primary Market of Tranchess. Every QUEEN token can be split evenly into 0.5 BISHOP and 0.5 ROOK. ROOK is designed for aggressive investors who want to take a leveraged position on a certain crypto asset. ROOK protects investors from forced liquidation and earns an additional yield between 1.5% to 10% on top of the 1.7~2.2 times leveraged position.

CHESS: After users stake their QUEEN, BISHOP or ROOK tokens on Tranchess, they start farming CHESS, the governance and utility token of Tranchess. Users can also obtain CHESS on Binance or Pancake Swap.

Why Tranchess?

Tranchess hopes to empower users of DeFi with asset allocation flexibilities. Tranchess team would continuously expand the protocol to encompass more product and fund offerings for users; At the same time improve their accessibility to users by exploring new chains and crypto assets as underlying.

What is liquid staking?

Liquid staking function allows users to earn staking rewards without locking assets, self-maintaining staking infrastructures or meeting the minimum staking requirements which can be high for retail users. Users can deposit tokens and receive tradable liquid tokens in return. The smart contract stakes these tokens using elected staking providers, and distributes the staking rewards back to users in the form of tradable liquid tokens or an increase of fair value of the liquid tokens.

Is there a minimum amount of ETH required for liquid staking?

There is no minimum amount of ETH required to stake with Tranchess. However, given it's an on-chain transaction, they would advise their users to check the relevant transaction fee to make sure it can be covered by the staking rewards.

What is qETH?

qETH is the liquid token of Tranchess liquid staking. After users stake their ETH with Tranchess, they receive qETH as the liquid token. The amount of qETH is constant unless users stake/unstake more ETH. The staking rewards will be accumulated as fair value of qETH and eventually reflected as an changed amount of ETH when users swap their qETH to ETH.

In addition to collecting the Beacon Chain staking rewards, users can also provide liquidity in the Tranchess qETH/ETH pool on Balancer, where LP providers receive CHESS rewards and veBAL incentives.

How do I earn CHESS?

You can harvest CHESS by staking Token QUEEN, BISHOP, and/or ROOK in the protocol.

What is the total supply of CHESS tokens?

The total supply of CHESS tokens is 300M.

What is the token allocation of total supply?

How many CHESS does a Token QUEEN/BISHOP/ROOK holder get every day?

The weight for Token QUEEN, Token BISHOP, and Token ROOK is set at 3:4:2, which means that IF 1 QUEEN received 3 CHESS tokens in a certain week, then during the same time period, 1 BISHOP would receive 4 CHESS tokens, and 1 ROOK would receive 2 CHESS tokens.

For example:

Suppose that Tranchess distributed 300,000 CHESS in total during a certain week and had an average total number of 30,000 QUEEN, 15,000 BISHOP, and 15,000 ROOK staked in the protocol during that week. The average number of CHESS that each QUEEN could get during this period would be 5, each BISHOP would get 5*(1+33%) ≈ 6.67, and each ROOK would get 5*(1-33%) ≈ 3.33.

What are the fees?