Tranchess

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Discover Tranchess's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Tranchess?

Tranchess (CHESS) is a yield-enhancing asset tracker protocol with varied risk-return solutions. It consists of three tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS. Users can earn CHESS by staking QUEEN, BISHOP, and/or ROOK tokens, which can be used for governance and fee rebates. The protocol aims to provide different risk-return matrices for users, including stable returns, leveraged crypto asset trading, and liquidity provision.

How is Tranchess used?

Tranchess (CHESS) is the governance token of the Tranchess community. It plays a crucial role in the Tranchess ecosystem, primarily used for governance, fee rebates, and staking rewards. Here are the key ways CHESS is utilized:

Governance

CHESS holders can participate in governance by locking their tokens to gain veCHESS, which serves as voting power. The number of veCHESS received depends on the time the tokens are locked for, up to a maximum of 4 years.

Fee Rebates

CHESS holders receive a weekly rebate in the form of all underlying assets available on the chain, totaling 50% of collected fees within Tranchess, excluding gas fees. For example, on the BNB Chain, such rebates come in BTCB, ETH, BNB, and BUSD.

Staking Rewards

CHESS tokens are earned by staking Token QUEEN, BISHOP, and/or ROOK in the protocol. The tokens are distributed based on a weight system, where QUEEN, BISHOP, and ROOK have a weight of 3:4:2, respectively. This means that if 1 QUEEN receives 3 CHESS tokens in a certain week, 1 BISHOP would receive 4 CHESS tokens, and 1 ROOK would receive 2 CHESS tokens.

Liquidity Mining

CHESS tokens are also used for liquidity mining. 50% of the token supply is allocated for liquidity mining of CHESS tokens, which encourages users to provide liquidity to the Tranchess ecosystem.

Ecosystem and Treasury

10% of the token supply is reserved for the ecosystem and treasury of Tranchess, including partnerships, third-party services, and listing fees.

Overall, CHESS is a vital component of the Tranchess ecosystem, facilitating governance, fee rebates, staking rewards, liquidity mining, and ecosystem management.

How do I store Tranchess?

To store Tranchess (CHESS) tokens, you have several options based on your needs and preferences. Here are the methods:

  1. Store on an Exchange: Holding your funds on an exchange provides the most convenient access to investment products and features, such as spot and futures trading, staking, lending, and more. The exchange will securely hold your funds, making it easy to manage your assets.

  2. Use a Crypto Wallet: You can store CHESS tokens in a reliable and reputable crypto wallet that supports Tranchess (CHESS). This method allows you to maintain full custody of your crypto assets via self-custodial wallets, which is beneficial for users who want more privacy and control over their assets.

  3. Decentralized Exchange (DEX): If you prefer a more decentralized approach, you can store your CHESS tokens on a DEX. This method connects you directly with sellers without intermediaries, ensuring full custody of your assets through self-custodial wallets.

Each method has its pros and cons, so it is essential to review them carefully to find the best method of storing Tranchess (CHESS) tokens based on your specific needs and preferences.

How to buy Tranchess?

To buy Tranchess (CHESS) tokens, you can follow these steps:

Buying Tranchess (CHESS) on a Centralized Exchange (CEX)
  1. Choose a CEX: Select a reliable and trustworthy crypto exchange that supports Tranchess (CHESS) purchases. Consider the ease of use, fee structure, and supported payment methods when choosing a crypto exchange.

  2. Create an Account: Enter the required information and set a secure password. Enable 2FA using Google Authenticator and other security settings to add an extra layer of security to your account.

  3. Verify Your Identity: Complete KYC verification, which may require government-issued identification documents. This step varies based on your nationality and region.

  1. Add a Payment Method: Follow the exchange's instructions to add a credit/debit card, bank account, or other supported payment method.

  2. Buy Tranchess (CHESS): You can buy Tranchess (CHESS) using fiat currency if supported. Alternatively, you can first purchase a popular cryptocurrency like USDT and then exchange it for Tranchess (CHESS).

Buying Tranchess (CHESS) via a Crypto Wallet
  1. Choose a Wallet: Select a reliable and reputable crypto wallet that supports Tranchess (CHESS).

  2. Download the App: Download the wallet application to your device from the Google Play Store, App Store, or as a browser extension.

  3. Create a Wallet: Create a new wallet address or import an existing one. Make sure you write down the seed phrase and keep it in a secure place.

  1. Buy Tranchess (CHESS): Purchase the cryptocurrency using a supported payment method. Check the fees, as they may be higher than what exchanges charge.

  2. Swap for Tranchess (CHESS): If your wallet doesn’t support direct fiat-to-CHESS purchases, you can first buy a more popular cryptocurrency like USDT and then exchange it for Tranchess (CHESS) through your crypto wallet or on a decentralized exchange.

Buying Tranchess (CHESS) on Decentralized Exchanges (DEX)
  1. Choose a DEX: Select a DEX that supports Tranchess (CHESS) trading. The mainnet of the DEX determines the cryptocurrency you need to purchase first. For example, if the DEX is on Ethereum Blockchain, you need to buy ETH first.

  2. Buy the Mainnet Cryptocurrency: Use fiat to buy the cryptocurrency corresponding to the DEX's mainnet (e.g., ETH for Ethereum Blockchain or BNB for Binance Smart Chain).

  3. Swap for Tranchess (CHESS): Once you have the mainnet cryptocurrency, you can swap it for Tranchess (CHESS) on the DEX.

Additional Tips
  • Ensure the exchange or wallet you choose supports Tranchess (CHESS) trading.
  • Be aware of fees associated with each step.
  • Keep your account and wallet secure with strong passwords and 2FA.
  • Research and understand the risks involved in cryptocurrency trading.

By following these steps, you can successfully buy Tranchess (CHESS) tokens.

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History of Tranchess

Tranchess, represented by the token CHESS, is a yield-enhancing asset tracker that offers varied risk-return solutions inspired by tranche funds. The project was conceptualized in 2020 by Co-Founder Danny Chong and a team with diverse backgrounds in tech firms such as Google, Facebook, and Microsoft, as well as investment banks like Morgan Stanley, UBS, and BNP Paribas.

The team's vision is to empower users of decentralized finance (DeFi) with Omni Asset Management capabilities, contributing to the shift from traditional finance to DeFi. They aim to offer a full product suite in Asset Management Protocols tailored for DeFi users across different risk capacities and appetites.

CHESS is the governance token of the Tranchess community. Users can earn CHESS by staking tokens QUEEN, BISHOP, and/or ROOK in the protocol. The total supply of CHESS tokens is 300 million, with a vesting schedule planned over a period of 207 weeks, or approximately four years.

The distribution of CHESS tokens started on June 24th, with a detailed emission schedule for all staked assets. The allocation of tokens is based on the total value locked (TVL) and community voting results.

Tranchess has been actively developing new features and partnerships, positioning itself to become a significant player in the DeFi space. Despite market fluctuations, the project continues to attract new users and has the potential to offer a unique and compelling experience for DeFi users.

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How Tranchess works

Tranchess is a decentralized finance (DeFi) protocol that allows users to earn yield on their tokens through a liquid staking mechanism. The protocol is themed around chess, with three main components: Liquid Staking, Tranche, and the governance token CHESS.

Liquid Staking

In Liquid Staking, users can stake and lock ETH and BNB tokens in a liquidity pool. In return, they receive qETH and qBNB tokens, which can be traded on decentralized exchanges like Balancer, BiSwap, or PancakeSwap. These q tokens can earn trading fees by supplying liquidity, making them attractive for DeFi investors.

Tranche

The Tranche component consists of three funds: QUEEN, BISHOP, and ROOK. Each fund is designed to cater to different investment strategies:

  • QUEEN: Tracks the performance of a single crypto asset or a basket of assets. It offers a yield farming feature, allowing users to swap their assets for QUEEN tokens and earn additional CHESS tokens.
  • BISHOP: A conservative investment strategy, offering lower returns but lower risk. It is fully collateralized and anchored to USD, allowing users to earn interest by providing liquidity to ROOK's leveraged exposure.
  • ROOK: A high-risk, high-return strategy involving leveraged long positions on ETH, BNB, and BTC. Users borrow funds to buy these assets, expecting their prices to rise. ROOK uses an innovative combination of the Rebalance model and TWAP pricing to lower the risk of manipulation or volatility.
CHESS Token

The CHESS token is the governance token of Tranchess. It is used for voting, fee rebates, and other ecosystem activities. CHESS holders can receive a weekly rebate in the form of all underlying assets available on the chain, totaling 50% of collected fees within Tranchess. The token distribution is designed to slowly reduce issuance over four years, with a long tail of fixed weekly emissions.

Token Utility

To participate in governance, users need to lock their CHESS tokens to gain veCHESS as voting power. CHESS can be locked for up to four years, and the number of veCHESS received depends on the time locked. This mechanism allows users to have a say in the development of the protocol and earn additional rebates.

Earning CHESS

Users can earn CHESS tokens by staking their tokens in Tranchess. The tokens are distributed weekly, with a detailed schedule outlined in the whitepaper. The CHESS emission schedule is determined by voting, ensuring that the community has control over the token's distribution.

Buying and Selling CHESS

CHESS tokens can be bought and sold on various cryptocurrency exchanges, such as Coinmerce, using credit cards or SEPA payments. Users can also execute stop-limit orders or repeating orders to manage their investments.

Overall, Tranchess offers a unique combination of liquid staking and tranche-based investment strategies, allowing users to manage their risk and earn yield on their tokens. The CHESS token plays a central role in the ecosystem, enabling governance and fee rebates.

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Tranchess's strengths

The token Tranchess (CHESS) has several strengths:

  1. Governance Token: CHESS is the sole governance token of the Tranchess community, allowing holders to participate in decision-making processes and vote on the future of the protocol.

  2. Earning Mechanism: Users can earn CHESS tokens by staking Token QUEEN, BISHOP, and/or ROOK in the protocol. This incentivizes users to engage with the platform and contribute to its growth.

  3. Total Supply and Vesting Schedule: The total supply of CHESS tokens is capped at 300 million, with a well-structured vesting schedule that ensures a controlled release of tokens over a period of four years. This helps maintain a stable supply and prevents rapid inflation.

  1. Token Allocation: The token allocation is divided among various groups, including the core team, seed investors, future investors, liquidity mining, and the ecosystem/treasury. This ensures a balanced distribution of tokens and promotes a healthy ecosystem.

  2. Decentralized and Smart Contract-Based: Tranchess is a decentralized, smart contract-based token launched on the Ethereum network, ensuring transparency, security, and trustless transactions.

  3. Yield Enhancement: CHESS tokens can be used to enhance yields through various mechanisms, such as fee rebates and additional returns, making it an attractive option for investors seeking passive income.

  1. Diverse User Base: Tranchess caters to different groups of users through its three tranche tokens: QUEEN for long-term holding, BISHOP for stable returns, and ROOK for leveraged trading. This diversity helps attract a broad user base and promotes the overall adoption of the platform.

These strengths contribute to the potential growth and stability of the Tranchess ecosystem, making CHESS a promising token for investors.

Tranchess's risks

Tranchess, a yield-enhancing asset tracker protocol, presents various financial risks to its users. These risks are primarily associated with the different tranches and their respective investment strategies:

  1. Forced Liquidation Risk:

    • ROOK Tranche: Although Tranchess employs an auto-rebalancing model to prevent forced liquidations, there is still a risk of liquidation if the value of the collateral falls below the liquidation threshold. This risk is mitigated by the use of Time-Weighted Average Price (TWAP) methodology and Chainlink oracles for accurate price feeds.
  2. Market Volatility Risk:

    • ROOK and BISHOP Tranches: Both ROOK and BISHOP tranches are exposed to market volatility. ROOK, being a leveraged long position, is more susceptible to significant losses if the market moves against the investor. BISHOP, although designed for stable returns, can still be affected by market fluctuations.
  3. Credit Risk:

  • ROOK Tranche: The leveraged long position in ROOK is maintained by borrowing funds. This exposes investors to the risk of default by the lending parties, which could lead to losses.
  1. Risk of Mislabeling or Misunderstanding:

    • All Tranches: Similar to traditional tranches in financial products, there is a risk that investors may not fully understand the characteristics and risks associated with each tranche, leading to investments that do not align with their risk appetite.
  2. Governance and Management Risks:

    • CHESS Token: The governance token, CHESS, is critical to the protocol's functioning. Any issues with the token's distribution, voting mechanisms, or management can impact the overall stability and performance of Tranchess.
  3. Liquidity Risks:

  • All Tranches: Tranchess relies on liquidity pools to facilitate trading and staking. If liquidity dries up, it can lead to difficulties in buying or selling tokens, potentially causing losses for investors.
  1. Smart Contract Risks:
    • All Tranches: As a decentralized protocol, Tranchess relies on smart contracts. Any vulnerabilities or bugs in these contracts can lead to security breaches, resulting in financial losses for users.

These financial risks highlight the importance of thorough research and understanding before investing in Tranchess and its various tranches.

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Did Tranchess raise funds?

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Tranchess’s team

  • Danny Chong: Co-founder of Tranchess, leading the team with a diverse background in tech giants and prominent investment banks, focusing on DeFi and asset management.

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