3AC-backed DeFi protocol Tranchess launched to track Bitcoin performance

Three Arrows Capital CEO Su Zhu has introduced the launch of decentralized finance (DeFi) protocol Tranchess.

Tweeting on Thursday, Zhu described Tranchess as a “Tokenized Asset Administration & Derivatives Buying and selling protocol.”

Whereas the challenge goals to develop into a multi-chain and multi-asset DeFi protocol, with designs on turning into a decentralized autonomous group, the primary iteration of Tranchess focuses on Bitcoin (BTC).

Tranchess 1.0 provides entry to a BTC value efficiency tracker on a correlated foundation. Because the challenge’s preliminary launch is on the Binance Good Chain, customers might want to have BTCB — the BEP-2 model of Bitcoin.

Based on the challenge’s white paper, customers swap BTCB in alternate for QUEEN — the primary native token. Alternatively, traders can purchase QUEEN with USD Coin (USDC) on supported exchanges.

Possession of the QUEEN token allows customers to get entangled within the protocol sub-fund or tranche. Maintaining with the chess theme, the sub-funds are dubbed BISHOP and ROOK. Buyers want solely cut up their QUEEN tokens into BISHOP and ROOK on a 50-50 foundation.

Per Zhu’s tweet, farming on Tranchess permits single-asset staking in a bid to counter impermanent loss. “If you’re holding BTC, create the Queen token. If you’re holding USDC, create the Bishop token,” the 3AC chief added within the Twitter thread.

Other than farming, there may be additionally the choice of getting into a leveraged lengthy place on Bitcoin through the ROOK token. Nevertheless, as identified by Zhu, “There’s no pressured liquidation nor funding value spike.”

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The place swapping BTCB for QUEEN is dubbed the “creation” step, Tranchess customers also can go within the different course by exchanging their QUEEN tokens for BEP-2 Bitcoin — the “redemption” step. Earlier than doing this, the person should merge the BISHOP and ROOK tokens again to an entire QUEEN “coin.”

Again in July, Tranchess secured $1.5 million in seed funding from notable backers, similar to 3AC, Spartan Group, IMO Ventures, LongHash Ventures and Binance Labs.