The CEO of Three Arrows Capital, Su Zhu, has announced the introduction of the DeFi-Tranchess (Decentralized Financial Protocol).
When tweeting on Thursday, Zhu described Tranchess as “Derivatives trading protocol and token asset management”.
While the project aims to become a multi-chain, multi-asset DeFi protocol with the aim of becoming a decentralized autonomous organization, the first iteration of Tranchess focuses on Bitcoin (BTC).
Tranchess 1.0 offers correlated access to a BTC price performance tracker. Since the first start of the project is on Binance Smart Chain, Users need BTCB, the BEP-2 version of Bitcoin.
According to the technical document of the project, Users trade BTCB in exchange for QUEEN, the main native token. Alternative, Investors can buy QUEEN with USD Coin (USDC) on supported exchanges.
Possession of the QUEEN token enables users to participate in the sub-fund or the tranche of the protocol. In line with the topic of chess, the sub-funds are called BISHOP and ROOK. Investors only have to split their QUEEN tokens 50% into BISHOP and ROOK.
According to Zhu’s tweet, Farming in Tranchess allows a single asset to be involved to make up for the temporary loss. “If you have BTC, create the QUEEN token. If you have USDC create the Bishop token “added the head of 3AC on the Twitter thread.
Besides breeding, There is also the option of entering into a leveraged long position in Bitcoin using the ROOK token. However, as Zhu pointed out, “There is no forced liquidation or increase in financing costs.”
Where exchanging BTCB for QUEEN is referred to as the “creation” step, Tranchess users can also go the other way by exchanging their QUEEN tokens for BEP-2 Bitcoin, the “redeeming” step. Before doing this, the user must merge the BISHOP and ROOK tokens into a complete QUEEN “coin”.
In July, Tranche assured $ 1.5 million in seed capital from top funders including 3AC, Spartan Group, IMO Ventures, LongHash Ventures, and Binance Labs.