CHESS

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Tranchess

Tranchess Overview

Tranchess is a decentralized financial protocol that combines the advantages of financial derivatives trading and blockchain technology. It provides investors with an efficient, transparent, and secure trading environment.

Key Features

• Asset Management: Tranchess is centered around an asset management tool that splits a single investment target into multiple derivative investment tools, offering different risk-return solutions for platform users.
• Tokenized Funds: The protocol introduces the traditional financial concept of “Tranche,” segmenting the risk-return structure to meet the needs of investors with different risk preferences and investment goals.
• Fund Tokens: Tranchess consists of three fund tokens: QUEEN, BISHOP, and ROOK, along with its governance token CHESS. Users can create a mother fund (main fund) QUEEN token on the platform using original assets (such as BTCB, ETH, or BNB).
• Risk-Return Configurations: QUEEN holders can choose to split into BISHOP and ROOK sub-fund tokens for different risk-return configurations. Conversely, BISHOP and ROOK can be merged back into QUEEN.
• Value Exchange: The value exchange process among the three fund tokens uses a Time-Weighted Average Price (TWAP) and relies on a trusted decentralized oracle network (such as Chainlink) to avoid abnormal prices.

Use Cases

• Yield Enhancement: Tranchess provides varied risk-return solutions, allowing users to choose and allocate based on their risk tolerance and investment expectations.
• Governance: CHESS holders can participate in governance by locking their tokens to gain veCHESS, which serves as voting power.
• Fee Rebates: CHESS holders receive a weekly rebate in the form of all underlying assets available on the chain, totaling 50% of collected fees within Tranchess, excluding gas fees.
• Staking Rewards: CHESS tokens are earned by staking QUEEN, BISHOP, and/or ROOK tokens in the protocol, distributed based on a weight system.
• Liquidity Mining: CHESS tokens are also used for liquidity mining, encouraging users to provide liquidity to the Tranchess ecosystem.

Pros of Tranchess

• Diverse Risk-Return Options: Tranchess offers various risk-return products through its QUEEN, BISHOP, and ROOK tokens, allowing users to choose based on their risk appetite.
• Yield Enhancement: Users can earn additional CHESS token rewards by staking QUEEN, BISHOP, and ROOK tokens, enhancing their yields compared to holding the underlying assets directly.
• Flexibility: The platform allows for easy conversion between QUEEN, BISHOP, and ROOK tokens, and back to the underlying assets, providing flexibility in asset management.
• Governance Participation: CHESS holders can participate in protocol governance and vote on decisions, giving them a say in the direction of the platform.
• Multi-Chain Support: Tranchess operates on multiple chains, including BNB Chain, Ethereum, and Scroll (an Ethereum Layer 2), making it accessible to a broader range of users.
• No Locking Period: Users can stake and unstake their tokens without any locking period, ensuring liquidity.

Cons of Tranchess

• Complexity: The protocol's structure, involving multiple tokens and risk-return matrices, can be complex for new users to understand.
• Market Volatility: The value of QUEEN, BISHOP, and ROOK tokens can fluctuate significantly due to market volatility, affecting user returns.
• Dependence on Underlying Assets: The performance of Tranchess tokens is closely tied to the performance of the underlying assets, such as BTC, ETH, and BNB.
• Competition: Tranchess faces competition from other DeFi protocols, such as Yearn Finance, which may offer similar or more attractive yield-enhancing solutions.
• Technical Risks: Like any DeFi protocol, Tranchess is subject to technical risks, including smart contract vulnerabilities and oracle network failures.

Founders of Tranchess

• Danny Chong: Co-Founder of Tranchess. He has over 16 years of banking experience, including trading, sales, digital, and management roles for the Asia Pacific Region.
• Other Founders: The information provided does not specify additional founders. For more detailed information, please refer to the official Tranchess website or other reliable sources.

Investors in Tranchess

Tranchess has received funding from several notable investors. These include:

• The Spartan Group: A well-known venture capital firm that invests in blockchain and cryptocurrency projects.
• Three Arrows Capital: A prominent hedge fund that focuses on cryptocurrency investments.
• Binance Labs: The venture arm of Binance, one of the largest cryptocurrency exchanges.
• LongHash Ventures: A global blockchain accelerator and venture capital firm.
• IMO Ventures: An investment firm that specializes in blockchain and cryptocurrency projects.

These investors participated in the seed round of Tranchess, which raised $1.5 million.

Halal Status of Tranchess

No, Tranchess is not considered halal. According to the halal crypto report by Practical Islamic Finance, Tranchess has been rated as "Uncomfortable," indicating that it does not meet the Shariah compliance criteria for Islamic finance.