3AC-backed DeFi protocol Tranchess introduced to trace Bitcoin efficiency

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

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

Whilst the mission goals to turn out to be a multi-chain and multi-asset DeFi protocol, with designs on changing into a decentralized autonomous organization, the primary iteration of Tranchess makes a speciality of Bitcoin (BTC).

Tranchess 1.0 gives get admission to to a BTC worth efficiency tracker on a correlated foundation. Because the mission’s preliminary release is at the BSC, customers will wish to have BTCB — the BEP2 model of Bitcoin.

In line with the mission’s white paper, customers switch BTCB in alternate for QUEEN — the primary local token. However, traders can gain QUEEN with USD Coin (USDC) on supported exchanges.

Possession of the QUEEN token permits customers to get entangled within the protocol sub-fund or Tranche. Conserving with the chess theme, the sub-funds are dubbed BISHOP and ROOK. Buyers want simplest break up their QUEEN tokens into BISHOP and ROOK on a 50-50 foundation.

In step with Zhu’s tweet, farming on Tranchess lets in single-asset staking in a bid to counter impermanent loss. “In case you are keeping BTC, create the Queen token. In case you are keeping USDC, create the Bishop token,” the 3AC leader added within the Twitter thread.

Excluding farming, there may be the choice of coming into a leveraged lengthy place on Bitcoin by the use of the ROOK token. Alternatively, as identified by means of Zhu, “There’s no compelled liquidation nor investment value spike.”

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The place swapping BTCB for QUEEN is dubbed the “introduction” step, Tranchess customers too can move within the different course by means of exchanging their QUEEN tokens for BEP2 Bitcoin — the “redemption” step. Ahead of doing this, the consumer would have merged the BISHOP and ROOK tokens again to a complete QUEEN “coin.”

Again in July, Tranchess secured $1.5 million in seed investment from notable backers like 3AC, Spartan Workforce, IMO Ventures, Longhash Ventures and Binance Labs.