The Ultimate Beginner’s Guide for Tranchess
Tranchess protocol recently hit its 1-Billion milestone and is now into its 2nd month of full launch since its initial guarded launch on June 21.
We believe many of our users are already enjoying the benefits of Tranchess; To aid newcomers in getting the most out of Tranchess protocol, we have compiled a “How to make money on Tranchess” guide. Enjoy.
Create Queen with your BTCB and start staking!
Once Queen becomes claimable, claim and stake to start earning CHESS instantaneously.
Tranchess has doubled its CHESS distribution rate on July 22nd with the opening of the full launch, distributing a total of 2,400,000 CHESS tokens to all staking addresses throughout the week. Here’s the schedule for full disclosure:
For the step-by-step guides on creating and staking Queen, check out our FAQ and How to Guides under Docs.
CHESS itself also has various utilities to enhance returns, further explained in the “CHESS Holder” section.
For those that don’t currently own BTCs, Tranchess Swap is just the place to go. Tranchess Swap is the secondary market where users can trade Token QUEEN, BISHOP, and ROOK directly with USDC.
Tranchess Swap has a uniquely designed premium-discount orderbook system to trade the staked QUEEN, BISHOP, and ROOK tokens with a 30min forward-starting time-averaged NAVs as their prices. For the detailed mechanism on pricing, check out Tranchess whitepaper at https://docs.tranchess.com/whitepaper.
Swap your USDC for BISHOP to start earning a competitive interest rate on your USDC, or swap for ROOK if you believe that BTC is in for a bullish ride. Since there’s always the need for a stable and risk-free return on the idling USDCs, let’s spend some time on BISHOP, the tranche carefully designed to cater to this need.
BISHOP’s earning combines the CHESS yield from staking BISHOP and the interest rate earned from ROOK. BISHOP has the highest weight in CHESS distribution among the three tokens. Two parts constitute its interest rate: the 7-day averaged USDC BORROW rate drawn directly from VENUS and an interest rate top-up determined by community voting.
In a highly volatile market like crypto, holding some “cash” for a buffer is hardly wrong. Decentralised lending protocols are the intuitive choice for USDC holders looking for a stable and risk-free yield/staking option. In recent times, there are over 3 billion USDC locked in the major lending protocols, collecting a supply APY that fluctuates with the market.
Tranchess, by design, draws the BORROW rate from VENUS instead of the supply rate. This means that USDC holders who swapped their USDC into BISHOP instantaneously start earning higher than supplying their USDC through lending protocols, and that’s not even inclusive of the interest rate top-up yet.
The interest rate ballot is held weekly, with 0%, 2%, and 4% options. The result for next week’s interest rate top-up is calculated based on a volume-weighted average of the voting distribution. To vote, one needs to lock the harvested CHESS to obtain veChess. Voting power isn’t the only thing veCHESS grants to users. To elaborate, let’s look at the utilities designed around CHESS.
CHESS is the governance token on Tranchess protocol and can be earned quickly via staking any or all three tokens (QUEEN, BISHOP, and ROOK) into the protocol. To highlight, there’s no impermanent loss to obtain CHESS through staking since it’s single-asset farming for QBR.
Earning additional returns doesn’t stop at harvesting & selling CHESS.
Tranchess launched its CHESS locking function on July 26th, with a promotion on BTCB rebate — 75% instead of the usual 50%, until Sep. 23rd. Tranchess rebates protocol fees collected during the week to all veCHESS holders based on veCHESS holdings and lock duration by locking Chess tokens. Check out Tranchess FAQs for detailed calculations.
As mentioned before, veCHESS is also the voting power in the Interest spread ballot under “Governance.” Tranchess will release more Governance features in the future, so stay tuned!
We hope this guide would help you in getting the most out of Tranchess Protocol. If you discover more ways to make money on Tranchess that we have not yet covered, please feel free to share!
(Nothing in this article should be construed as Tranchess’ provision of any type of investment or other advice or recommendations, or by any of our affiliates or third parties to any person in any jurisdiction.)