Three Arrows Capital CEO Su Zhu announced the launch of the Decentralized Finance (DeFi) Tranchess protocol.
Tweeter On Thursday, Zhu described Tranchess as a “tokenized asset management and derivatives trading” protocol.
Tranchess 1.0 provides access to a BTC price performance tracker on a correlated basis. Since the initial project launch is on the BSC, users will need to have BTCB – the BEP2 version of Bitcoin.
According to the project white paper, users trade BTCB for QUEEN, the primary native token. Alternatively, investors can acquire QUEEN with USD Coin (USDC) on supported exchanges.
Ownership of the QUEEN token allows users to get involved in the protocol bucket or Tranche. In keeping with the chess theme, the compartments are named BISHOP and ROOK. Investors only need to divide their QUEEN tokens into BISHOP and ROOK on a 50-50 basis.
According to Zhu’s tweet, farming on Tranchess allows for the staking of a single asset in a bid to counter impermanent loss. “If you have BTC, create the Queen token. If you own USDC, create the Bishop token, ”added the 3AC leader in the Twitter thread.
Besides farming, there is also the option to enter a leveraged long position in Bitcoin via the ROOK token. However, as Zhu pointed out, “There is no forced liquidation or rising financing costs.”
Where the exchange of BTCB for QUEEN is dubbed the “creation” stage, Tranchess users can also go the other way by exchanging their QUEEN tokens for BEP2 Bitcoin – the “redemption” stage. Before doing this, the user would have merged the BISHOP and ROOK tokens into an entire QUEEN “coin”.
Back in July, Tranchess secured $ 1.5 million in seed funding from notable backers like 3AC, Spartan Group, IMO Ventures, Longhash Ventures, and Binance Labs.