TVL soared more than 240% this year, encryption Graded Fund Tranchess enters the Liquidity stake battlefield

Repost the original title "TVL soared more than 240% in the year, Tranchess encryption graded fund enters the Liquidity stake battlefield"

From financial innovation experiments to the cornerstone of the Liquidity market, Decentralized Finance has undergone rapid development and evolution over the years. However, with the evolution of the amplification effect of the deleveraging cycle, the fate of various Decentralized Finance ecosystems has also turned with the rotation of the gears, and competition has entered a white-hot stage.

Tranchess, a veteran player in the DeFi track, playing with the concept of leveraged funds, has been continuously improving its ability to traverse cycles around asset management in the past few years, and has joined the narrative wave of Liquidity stake.

The graded fund model matches different risk preferences and has attracted more than 250 million dollars.

Tranchess is a structured fund in the DeFi world, mainly providing investment needs with different risk preferences and addressing Impermanent Loss, low capital efficiency, Forced Liquidation, and other issues. This way of decomposing risk levels and expected returns has made Tranchess widely followed in the market, and its popularity was intuitively reflected in the TVL index soaring at that time, also confirming the market fit of the product.

Graded funds are a type of financial derivative that divides fund products and risks into different levels. Generally, Class A sub-funds mainly obtain fixed income, while Class B sub-funds mainly obtain residual income. Tranchess has derived multiple risk/return matrices from a single main fund, among which Queen is the parent fund, mainly creating BTCB, ETH (with an annual management fee of 1%), or BNB (with an annual management fee of 2%) funds, providing additional returns of 2% to 16% for long-term holders; Bishop and Rook are two different risk-return sub-fund products split from QUEEN. Each QUEEN can obtain 0.5 BISHOP and 0.5 ROOK, among which Bishop is a stablecoin high-yield product in the DeFi context, lending Liquidity assets to Rook holders, designed for stable income users. Rook is a leveraged fund designed for aggressive investors, which can be understood as unsecured borrowing and lending Mining, with no risk of Forced Liquidation.

By the end of 2023, Tranchess launched its own qETH Liquidity stake product on Ethereum, and then based on this, combined with its own graded fund structure, it developed the Turbo & Stable product zone.

In the Turbo & Stable fund under Tranchess, Turbo represents an enhanced version of ROOK, which allows users to earn points rewards through leverage; Stable is an enhanced version of BISHOP, which can earn a fixed interest rate. According to the official website, Tranchess Turbo & Stable funds have been launched on the ETH network, BNB Chain, and Scroll network, with a total investment of over $250 million. These products can be converted back to their respective underlying tokens after the event, without lock-up periods, creation/redemption fees, or split fees.

Taking the STONE fund product launched on Scroll as an example, the STONE fund has received over $190 million in funding. This is a fund launched by Tranchess and StakeStone for a period of six months, mainly including stoneQUEEN, turPSTONE, staYSTONE, and staYSTONE-STONE LP. Users can create stoneQUEEN at a ratio of 1:1 to earn 1x points, or further split each stoneQUEEN into 0.1 turPSTONE and 0.9 staYSTONE to earn 2x points. turPSTONE, equivalent to TurboToken, has a 10x leverage ratio and an additional 2x points bonus from StakeStone, allowing holders to earn 20x StakeStone points (Note: After the fund expires, Token holders can redeem the underlying assets (including STONE) based on the net value at maturity, so these numbers are approximate net values at maturity. Before that, users can swap Turbo or stable for STONE, and this process is exchanged at the current market trading price displayed on the webpage. The exchange ratio of QUEEN is always 1:1. The same applies to the following); staYSTONE is a fixed-income StableToken, and holders can earn a fixed 6% annualized interest (after the fund expires, it can be redeemed for approximately 1.0149 STONE based on its net value), without earning any points. staYSTONE-STONE LP holders can earn a basket of income, including CHESS rewards, a 0.05% fee rate, interest, and a 2x points multiplier. Holders can add or remove liquidity in a single currency or dual currency at any time.

Taking the weETH fund jointly launched by Tranchess and ether.fi as an example, it includes weethQUEEN, turPWEETH, staYWEETH, and staYWEETH-weETH LP. The event will end on December 15th this year. Users can exchange weETH for weethQUEEN at a 1:1 ratio, and split each weethQUEEN into 0.1 turPWEETH and 0.9 staYWEETH. Similarly, each 10 turPWEETH and 9 staYWEETH can be merged into 10 weethQUEEN, which means the ratio is always 1 = 0.1 + 0.9. weethQUEEN can get 4 times the points. turPWEETH holders can also get a 10x fixed leverage ratio and a 4x point multiplier from ether.fi to earn 40x points (after the fund matures, it can be exchanged back for 0.9426 weETH based on its net value), staYWEETH can get a 10% fixed Interest (after the fund matures, it can be exchanged back for about 1.006 weETH based on its net value). staYWEETH-weETH LP holders can get CHESS rewards, 0.05% transaction fee rate, Interest, and points as rewards (4 times).

At the same time, Tranchess also collaborates with the Depth of the Scroll ecosystem to enable Turbo & Stable products launched on Scroll to participate in Scroll's own Session rewards and earn Scroll Marks points.

In addition, the Turbo & Stable Fund also includes SolvBTC, slisBNB, and Staked ETH Fund, with the same product logic as the above products.

It is worth mentioning that Tranchess charges a 3% fee based on the points obtained by the Turbo & stable fund. On the BNB Chain, this 3% is calculated and paid separately by the project party, without affecting the user's points income. On Scroll, the fee is charged based on the user's Turbo points income. All points income will be fully refunded to the corresponding veCHESS users on each project's expiration and TGE rhythm, further enhancing the yield of veCHESS holders.

From BNB to Ethereum, Tranchess delves deep into the liquid staking track

As an important branch of the Decentralized Finance ecosystem, Liquiditystake has supported half of the Decentralized Finance's hundred billion TVL. Since the upgrade in Shanghai Ethereum, Liquiditystake has become a hot narrative in the Decentralized Finance track, and the capital flow directly indicates the market trend. Decentralized Finance Llama data shows that as of August 24th, Liquiditystake has occupied half of the Decentralized Finance market with over 45 billion USD. And from the stake rate of various mainstream POS chains, there is still significant rise space for the Liquiditystake track.

In fact, after years of iteration and upgrading, Tranchess has entered the stake track. In early 2022, Tranchess had already entered the stake income track, starting the BNB Fund and becoming a BSC verification Node to obtain new income; in December of the same year, Tranchess launched the qETH Liquiditystake product while going online on Ethereum; this year, with the release of V3, Tranchess officially launched the first shot in the LSDFi track.

In addition to collaborating with multiple well-known LSD protocols to launch a variety of products, Tranchess also supports Liquidity stake of QUEEN Token on Ethereum and BNB Chain. If users choose to stake ETH to exchange for qETH, they can earn an APR of 4.4%, with the current total stake amount exceeding $550,000. In addition to stake rewards, users can also provide Liquidity in the qETH/ETH pool on Balancer, where LPs will receive CHESS rewards and veBAL incentives, which will be used in more Decentralized Finance protocols in the future. Of course, after users receive stake rewards, the platform will charge a 10% fee, which will be allocated to Node operators, Tranchess treasury, and weekly rebates for veCHESS holders.

In addition to increasing the yield of a single asset, BNBFund also adds a layer of Alpha income. Specifically, the BNB fund will stake BNB to the Tranchess validator node on the BNB Chain, thereby obtaining an APR of 8% to 16%, and distribute this reward to all nQUEEN+ and nROOK+ holders (after deducting protocol fees). It is also possible to stake Q/B/R tokens to obtain rewards in the form of CHESSToken. For example, users who stake BNB to create nQUEEN can receive a POS stake reward of 0.45% and a CHESS reward of 3.7% to 11.7%.

"With the continuous rise in demand for Ethereum, we expect similar Liquidity stake products such as qETH, STONE, and related products like staYSTONE, turPSTONE to continue to receive attention. The Ethereum spot ETF will increase institutional investors' interest in Ethereum and stake, thereby driving up the value and network demand of Ethereum, and subsequently the stake yield will rise," Tranchess stated in a recent article.

As the concept of BTCFi gradually matures, it is worth continuing to follow whether Tranchess, which first introduced WBTC asset management on BNB Chain, can further explore the opportunities to participate in BTCFi with the current cooperation with projects such as SolvBTC.

TVL has increased by over 240% this year and has received investment from Binance Labs, among others.

The impressive rise in data shows the strong competitiveness of Tranchess. According to DeFiLlama's data as of August 24th, Tranchess's TVL has exceeded $210 million, ranking second on Scroll, with a growth rate of up to 241.9% this year.

As a Decentralized Finance protocol born in the heyday of Decentralized Finance, Tranchess announced the completion of a $1.5 million seed round funding as early as 2021, with many institutions such as Three Arrows Capital, The Spartan Group, Binance Labs, Longhash Ventures, and IMO Ventures participating.

In addition to product strategy, the team is also an important factor behind the backing of Star Capital. Danny Chong, co-founder of Tranchess, has over 16 years of banking experience and was responsible for forex and fixed Interest Rate product sales in the SEA department of Oriental Huirong Bank. Other team members have rich industry experience in institutions such as Microsoft, Google, Morgan Stanley, and UBS.

Tokenomics is also an important part of the Tranchess ecosystem. The total supply of governance token CHESS is 300 million, of which 50% will be used for community allocation and incentives. Holders can participate in community decision-making, voting, and pay Money Laundering. In addition to purchasing on the Secondary Market, users can also obtain CHESS through staking QUEEN, BISHOP, or ROOK tokens (with a weight ratio of 3:4:2), providing Liquidity for AMM pools, and other methods. veCHESS represents locked CHESSTokens, with lock-up periods ranging from one week to four years. The exchange ratio will rise linearly (locking 1 CHESS for 1 year will yield 0.25 veCHESS, and locking 1 CHESS for 4 years will yield 4 veCHESS). The rights obtained by veCHESS holders include voting for Alpha revenue distribution between BISHOP and ROOK, voting for weekly CHESS release, distributing 50% of protocol income weekly, improving stake efficiency, and sharing 3% of Turbo & stable fund points income as mentioned earlier.

In addition, Tranchess' community management proposal, launched last Thursday, stated that the future collaboration of Turbo & Stable will be decided by veCHESS users through voting. On the one hand, it further expands the application scenarios of veCHESS, and on the other hand, it demonstrates the unlimited potential of the rapid replication of the Turbo & Stable model.

Not only that, in the dark forest of Decentralized Finance, Tranchess is also working on security, including completed Smart Contract audits by PeckShied and Certik, launching a bug Bounty Program with ImmuneFi, and partnering with Decentralized Finance insurance protocol InsurAce. According to the roadmap, Tranchess will continue to expand structural products, Node operators, X-Chain expansion, etc. in 2024.

Overall, Tranchess, a veteran encryption structured fund, provides diversified risk strategies for more users while improving the flexibility and efficiency of asset allocation. At the same time, with the continuous outbreak of liquidity stake in the race track, the heat of the LSD track will also inject strong momentum into Tranchess' competition in the Decentralized Finance market.

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1. This article is reprinted from [PANews], the original title is "TVL soars over 240% this year, encrypted grading fund Tranchess enters the liquidity pledging battle", the copyright belongs to the original author [Nancy, PANews], if you have any objections to the reprint, please contact the Gate Learn team, the team will handle it as soon as possible according to the relevant process.
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