Three Arrows Capital has launched a DeFi platform, Tranchess. The platform aims to track Bitcoin performance, it also offers yield farming and is live on the Binance Smart Chain.
Tranchess is live on the Binance Smart Chain with a Bitcoin tracking token and yield farming options for investors.
Su Zhu, CEO of Three Arrows Capital, has announced the creation of Tranchess, a decentralized finance (DeFi) platform. Zhu characterized Tranchess as a “Tokenized Asset Management & Derivatives Trading system” in a tweet on Thursday.
While Tranchess aspires to be a multi-chain and multi-asset DeFi protocol with the goal of becoming a decentralized autonomous organization, the first version of the project is focused on Bitcoin (BTC).
Tranchess 1.0 provides associated access to a BTC price performance tracker. Users will need BTCB — the BEP-2 version of Bitcoin — to participate in the project’s initial launch on the Binance Smart Chain.
Users trade BTCB for QUEEN, the project’s main native token, according to the white paper. Investors can also purchase QUEEN using USD Coin (USDC) on supported exchanges.
Users who own the QUEEN token can participate in the protocol sub-fund or tranche. The sub-funds are dubbed BISHOP and ROOK, in keeping with the chess motif. Investors merely need to split their QUEEN tokens 50/50 into BISHOP and ROOK.
According to Zhu’s tweet, Tranchess farming allows for single-asset staking to mitigate temporary loss. “Create the Queen token if you have Bitcoin. Create the Bishop token if you have USDC,” the 3AC chief added in the Twitter thread.
Apart from farming, the ROOK token can also be used to open a leveraged long position on Bitcoin. “There is no forced liquidation or funding cost spike,” as Zhu points out.
Whereas converting BTCB for QUEEN is referred as the “creation” step, Tranchess users can also “redemption” their QUEEN tokens by exchanging them for BEP-2 Bitcoin.
To do so, the user must first merge the BISHOP and ROOK tokens into a single QUEEN “currency.”
Tranchess raised $1.5 million in seed funding in July from 3AC, Spartan Group, IMO Ventures, LongHash Ventures, and Binance Labs, among others.