What is Tranchess (CHESS)?

Deep Dive

1. Purpose & Value Proposition

Tranchess lets users decompose assets like BTC or ETH into two tranches:
- BISHOP: Stable yield token (like fixed income) with lower risk, backed 1:1 by the underlying asset.
- ROOK: Leveraged token offering amplified exposure to the asset’s price movements, funded by BISHOP’s yield.

This structure allows conservative investors to earn predictable returns while enabling risk-tolerant users to access leverage without margin calls.

2. Tokenomics & Governance

• CHESS: Governance token used to vote on weekly emissions, fee rebates, and staking rewards. Locking CHESS converts it to veCHESS, granting:
  
  • Control over 50% of protocol revenue distribution (CoinMarketCap).
  • Up to 3x boosted yields on staked assets.
• ~19% of CHESS supply is locked long-term (avg. 6–8 months), aligning incentives between users and protocol health.

3. Key Differentiators

• No liquidations: ROOK’s leverage is funded via BISHOP’s yield, avoiding forced sell-offs during volatility.
• Multi-chain yield: Integrates Ethereum, BNB Chain, and Scroll for diversified staking strategies (e.g., 45% APY on BNB via validator nodes).
• TradFi-grade architecture: Uses audited smart contracts and institutional risk frameworks uncommon in DeFi.

Conclusion

Tranchess reimagines yield generation by letting users tailor risk exposure through tranched products, governed transparently via veCHESS. Its hybrid TradFi/DeFi approach raises a pivotal question: Can structured products sustainably attract both conservative and speculative capital in crypto’s volatile markets?