The turbulence of the encryption market never stops, and the field of Decentralized Finance continues to move forward in this turbulence. The global economy's expectations of interest rate cuts are quietly changing investors' risk preferences and return demands.

In an environment where the market narrative is increasingly dry, the discussion about Decentralized Finance has once again become more prominent. After a full cycle of bull and bear evolution, Decentralized Finance projects are no longer satisfied with simply copying the TradFi model, but are starting to think deeply about how to better meet market demands.

From the rebranding of MakerDAO to the emergence of various novel income strategies, the entire ecosystem is undergoing a profound transformation. At the same time, Binance, as an industry giant, is also actively seeking changes. The Meme craze on the BNB Chain and the high-frequency projects within the ecosystem... These series of actions are conveying positive signals to the market.

In the ever-changing wave of cloud, Tranchess, the OG Decentralized Finance protocol in the BSC ecosystem, stands out among many products in the same field with its unique structured fund architecture, cleverly combining the concept of structured funds with Decentralized Finance innovation to provide investors with a unique Decentralized Finance experience. As the market demand environment changes, Tranchess continues to promote product iterations and match market demand with multiple projects.

In this article, we will delve into Tranchess's multiple innovations and analyze how Tranchess has created a unique path for investors to make a profit in the current market environment by combining its inherent advantages with institutional innovation. Whether you're a Decentralized Finance Seasoned Trader or just starting out in the field, this article will provide you with some new insights.

Why Decentralized Finance？

In the face of a diverse encryption ecosystem, not only external users, even encryption veterans will have some thoughts: why is Decentralized Finance still worth focusing on with so many new ideas emerging constantly?

Andre Cronje provides some insights in his recent article 'Why Decentralized Finance is the Key to the Future?'

The article points out that Decentralized Finance is essentially a hub for Liquidity and trading demand, and it plays an indispensable role in every on-chain ecosystem, providing necessary Liquidity support to the market while meeting diverse financial needs ranging from simple Token exchanges to complex derivatives trading.

AC said, 'Anyone willing to try can participate, which is an important cornerstone of the economic rise.' The openness and composability of Decentralized Finance make it an ideal experimental field for financial innovation, whether it is a bull run or a bear market, Decentralized Finance is the core engine that maintains the vitality of the ecosystem.

Tranchess, a good move in Decentralized Finance that transcends bull and bear markets

Tranchess was born in the 2021 Decentralized Finance wave, during the Bull Run of the encryption market. However, Tranchess not only demonstrated strong vitality during the long cycle, but also injected new vitality into itself through continuous iterative and innovative mechanisms, fully demonstrating its profound strength as an old OG.

According to the latest data from DeFiLlama, as of September 2024, Tranchess's TVL on BNB Chain has reached $183 million, with a rise of nearly 500% during the year.

Professional Team

Tranchess can maintain vitality even in a deep bear market, which is closely related to its professional team. Tranchess is composed of a team with rich backgrounds in blockchain and finance. The core team members have extensive experience in TradFi, including investment banking, asset management, and hedging funds.

Co-Founder Danny Chong graduated from Nanyang Technological University and has over ten years of experience in the banking industry, including trading, sales, and management in the Asia-Pacific region.

The technical team also has impressive experience in network security of Centralized Exchange and Decentralized Finance protocol, with team members from technology giants such as Google, Meta, and Microsoft.

Decentralized Finance protocol inspired by the concept of "Tranches"

Tranchess was born inspired by the concept of "Tranches" in TradFi, and the protocol innovatively provides investors with different risk appetites with a tiered, multi-structured asset investment solution.

Tranchess provides two main categories of core services:

• Liquiditystake service: Tranchess's Liquiditystake service mainly revolves around BNB Chain's stakeToken nQUNEE and Ethereum Mainnet's stakeToken qETH. Taking qETH as an example, users can stake ETH to obtain qETH on the Ethereum Mainnet. While enjoying the stake rewards within the protocol, qETH can also be used as Collateral for external Decentralized Finance protocols, improving capital efficiency.
• Tiered return products: Tranchess also provides a diversified risk-return solution based on the main fund QUEEN, which splits QUEEN into two derivative tokens, BISHOP and ROOK, according to different risks and returns, aiming to meet the needs of investors with different risk appetites. Today, Tranchess has further optimized its product structure by upgrading it to a more flexible Turbo&Stable architecture.

No fixed pattern in chess, from structured funds to Turbo & Stable

From hierarchical modes to Turbo & Stable, the iteration of Tranchess is like a fascinating chess game, with each move being a precise response to market changes.

Starter, Structured Funds for Graded Response

Structured design is the core innovation of Tranchess design philosophy. It involves splitting a single asset into Derivatives with different risk levels. This structure allows investors to choose suitable investment strategies based on their risk preferences. Specifically, Tranchess divides assets into three levels:

Main Fund TokenQUEEN

QUEEN is the underlying asset pegged 1:1 to the underlying encryption asset. It serves as the primary fund unit in the entire structure, and users can directly hold QUEEN to gain complete exposure to the underlying asset. QUEEN can be minted, redeemed, and split into BISHOP and ROOK. The revenue source of QUEEN includes price changes of the underlying asset, stake rewards (if the underlying asset supports staking), and protocol income distribution.

For example, QUEEN holders can not only enjoy the income brought by the price changes of BTC, but also earn additional CHESS governance Token rewards through stake. Investors can directly exchange BTC for QUEEN, or purchase QUEEN with USDC in Tranchess Swap.

Derivative Token: BISHOP and ROOK

Split into two derivative Tokens, BISHOP and ROOK, representing different risk and return characteristics from QUEEN.

BISHOP is a fixed income Token with relatively low risk, providing stable returns similar to fixed income products. Its income comes from the fixed QUEEN yield, which is regularly adjusted by the protocol according to market conditions. BISHOP provides relatively stable returns in market Fluctuation, suitable for risk-averse investors.

ROOK is a leveraged Token, with higher risk, providing leveraged returns, and being more sensitive to underlying asset price changes. ROOK's returns come from all remaining profits of QUEEN (i.e., total profits minus the portion paid to BISHOP). During the pump in the market, ROOK can gain excess returns, but also faces greater downside risk.

Structured fund design allows investors to flexibly adjust Holdings according to their risk preferences. Investors can switch between QUEEN, BISHOP, and ROOK at any time to achieve personalized Risk Management strategies. For example, when anticipating a market pump, increasing ROOK holdings can lead to higher returns; when expecting a market downturn, increasing BISHOP holdings can result in stable returns.

The flexible tiered architecture allows Tranchess to expand to more encryption assets in the future, providing investors with a wider range of market participation opportunities. Whether it's BTC, ETH, or BNB, Tranchess has the potential to create corresponding structured products to meet the needs of different investors.

Turbo&Stable, Tactical Innovation in Chess

With the launch of the qETH Liquiditystake product on the ETH Mainnetstake by Tranchess, the concept of "Turbo&Stable" is also introduced into Tranchess's product ecosystem.

Turbo & Stable mode is essentially a subdivision and upgrade of structured funds. The concepts of Turbo and Stable can also be understood as enhanced products of ROOK and BISHOP.

Turbo (Enhanced ROOK): A high-leverage, high-yield offensive weapon

Just like a rook advancing relentlessly on the chessboard, the Turbo product offers higher leverage and potential returns, making it suitable for investors willing to take on higher risks. It's like a bold move in the game, potentially bringing significant returns but also facing greater risks.

Stable (Enhanced BISHOP): A defensive fortress for stable income

Similar to the flexible Bishop, Stable products provide more stable returns and become the defensive core of the investment portfolio. It provides an ideal choice for investors seeking stable returns and low risk preferences, just like building a solid line of defense in a chess game.

In-depth explanation of Turbo&Stable, using StakeStone's STONE fund as an example

The concept of light chat is inevitably abstract. Let's take the Turbo&Stable product STONE fund, a collaboration between Tranchess and StakeStone, as an example to introduce how this trap architecture works.

Simplify the complex, and the two tokens can be flexibly split

The core of the STONE Fund is the Token splitting mechanism based on the Turbo&Stable architecture. Users can exchange STONE for stoneQUEEN at a 1:1 ratio, and each stoneQUEEN can be split into 0.1 turPSTONE (Turbo Point STONE) and 0.9 staYSTONE (Stable Yield STONE). At the same time, this process is reversible, and users can combine 0.1 turPSTONE and 0.9 staYSTONE back into 1 stoneQUEEN.

staYSTONE-STONE LP Multiple Yield

Tranchess has also introduced staYSTONE-STONE LP Token, providing additional revenue opportunities for ecosystem users.

These LP Tokenholder can not only receive CHESS Token and 0.05% trading fee rewards, but also enjoy part of staYSTONE's Interest and 2 times the StakeStone points multiplier (for the STONE part in LP). In addition, Tranchess also provides an additional reward of 150,000 CHESS per week for LPs of the STONE fund.

Different points rewards and income structure

The total staking period of Tranchess STONE Fund is 6 months and will end on October 8, 2024. At that time, different types of tokens can be exchanged for STONE based on their fair value. At the same time, Tranchess allows STONE holders on Scroll to earn StakeStone points and Scroll Marks points.

stoneQUEEN can be exchanged 1:1 with STONE, holding stoneQUEEN can earn the same multiple of StakeStone points as holding the equivalent amount of STONE. However, splitting stoneQUEEN into staYSTONE and turPSTONE and holding both can earn a double points multiplier without loss, and earn Scroll Marks points based on the holding value at the same time.

turPSTONE not only has a fixed leverage ratio of 10 times, but also obtains a 2 times point multiplier of StakeStone, which means it can finally obtain 20 times the StakeStone points. Excluding the cost of paying the fixed Intrerest Rate to staYSTONE at the end, when the fund expires, turPSTONE: STONE<1

staYSTONE offers a fixed annual interest rate of 6% for investors seeking stable returns, but without StakeStone point rewards. Scroll Marks points are obtained based on the holding value. At the end of the fund term, staYSTONE: STONE＞1

In addition, Tranchess will charge a 3% fee from the points obtained from Turbo & Stable fund products as additional income and distribute it 100% to veCHESS holders to increase the yield of veCHESS holders.

PS: The exchange ratios of turPSTONE, staYSTONE, and STONE mentioned in the text are roughly estimated, and the exact ratios will be announced based on the specific fair value and close to the end of the fund.

Good and fast, a precise architecture that can be quickly copied

Not limited to STONE Fund, the currently launched Turbo&Stable products include weETH Fund in cooperation with eth.fi, Staked ETH Fund in cooperation with LIDO, SolvBTC in cooperation with SOLV, slisBNB in cooperation with Lista DAO, and the recently launched SolvBTC. BBN Fund.

In addition to providing a variety of income gameplay, Turbo&Stable supports the rapid launch of any LST narrative chain, and can also flexibly adapt to the income changes of corresponding assets, such as the recently launched SolvBTC.BBN. As the project with the most stakeBTC in the early stage of the Babylon ecosystem, it is currently the LRT with the highest Babylon point income. As another part of user income, this advantage will also be retained in the structure of Turbo&Stable, fully reflecting the flexible characteristics of the trap's precise architecture of being "good and fast".

Key Moves of Tranchess: CHESS & veCHESS

Recently, CHESS, which was listed on Binance Futures, has once again attracted attention. As the governance currency of Tranchess, CHESS and veCHESS are not only the key links connecting the entire Tranchess system, but also grow in value together with the project itself.

Governance Token CHESS

The total supply of CHESS is 300 million. In addition to direct purchases, users can also obtain CHESS through various methods, mainly including participating in Liquidity Mining or staking QUEEN, BISHOP, and ROOK Tokens to obtain CHESS.

After Lock-up Position is transformed into veCHESS, CHESS can unlock various use cases in the ecosystem: veCHESS has governance rights such as voting, weekly protocolDividend, 3% Turbo & Stable point income, etc.

In addition to Liquidity and governance functions, CHESS currently supports cross-chain interaction with BNB Chain, Ethereum and Scroll three chains.

Lock-up Position transforms, veCHESS is launched!

Lock CHESS Exchange

Users can choose to lock CHESS for a period of 1 week to 4 years, and the exchange ratio also rises linearly according to the lock-up time. The specific calculation method for the number of veCHESS is to multiply the number of CHESS by the lock-up time (in years) and divide by 4.

For example, locking 100 CHESS for 4 years will yield 100 veCHESS, while locking 100 CHESS for 2 years will yield 50 veCHESS. At the same time, the quantity of veCHESS will decrease linearly over time, but users can increase their veCHESS balance by increasing the lock-up time or quantity.

Tranchess also supports locking CHESS in batches, and each lock will create a new lock position. For easy management, users can merge multiple lock positions into one.

Layer upon layer of additional income

In addition to the 3% point income return of the Turbo&Stable fund mentioned above, veCHESS holders will also receive 50% of Tranchess platform's weekly earnings as additional stake rewards, with the remaining 50% of earnings going into the Treasury.

Continuously enriching governance rights

Users holding veCHESS can participate in various important decisions on the Tranchess platform. The voting weight is proportional to the amount of veCHESS held, ensuring that users with long-term commitments to the platform have a greater say in the decision-making process.

Recently, Tranchess community proposed Governance Proposal 9, which suggests that the voting governance rights of veCHESS can be extended to the decision-making layer of all new Turbo&Stable projects in the future. This proposal further expands the use cases of veCHESS and demonstrates the future potential of rapid replication of the Turbo&Stable architecture.

Value Oasis Under the Hotspot?

As the exploration of the Tranchess ecosystem deepens, it is evident that CHESS is not just a simple governance token, but also the core value carrier in the Tranchess ecosystem.

The veCHESS locked in CHESS not only brings generous income sharing, but also empowers holders to participate in major platform decisions. The dual attributes make CHESS a highly attractive value storage and appreciation tool.

With the continuous rise of the platform's TVL, the official launch of Perptual Futures, and several Turbo&Stable fund products approaching maturity, CHESS is likely at a value point, and the potential returns of veCHESS may be sufficient to cover the current market's perception of CHESS price. The true potential value of CHESS is not limited to the speculative expectations of the market for the Decentralized Finance zone and short-term "lottery mentality" of listing a single Token, but rather the long-term and valuable product returns that provide support.

Only by pushing out the old and bringing forth the new can one achieve great success.

From structured funds to the Turbo&Stable architecture, the veteran player Tranchess has always maintained excellence and flexibility in the fiercely competitive Decentralized Finance track, while ensuring diverse returns for users and providing more solutions for various ecosystems, embodying the true Decentralized Finance Native style.

The development trajectory of Tranchess proves that only by bringing forth new ideas and always maintaining a crucial semi-son advantage can one stand undefeated in the game of encryption.

Statement:

2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.

3. The other language versions of the article are translated by the Gate Learn team. Without mentioning [Gate.io] (http://gate.io/), it is not allowed to copy, disseminate, or plagiarize the translated articles.