We held a Binance Live AMA on the Binance website featuring our beloved CEO & Co-Founder Danny Chong, aka King! The topic of discussion was our launch of Tranchess V2, the value it brings to both Tranchess users as well as the overall DeFi ecosystem.
Discussed topics include:
1. Tranchess V2 user interface and the reasoning behind it
2. Tranchess V2’s value proposition to CHESS holders and the overall DeFi ecosystem
3. Is a bank run technically possible?
4. How decentralized is TranchessDAO?
5. How do you guarantee minimal slippage for swappers on Tranchess V2?
Binance: Sue (host)
Tranchess: Danny Chong, aka King, CEO and Co-Founder Tranchess
Please note this is only the Q&A section of the AMA. To find the full interview, please navigate to the Binance Live website for a video recap: https://www.binance.com/en/live/video?roomId=2104982
Q1: Tranchess V2 has a different UI than V1. What is Tranchess do to make UI V2 able to improve the overall user experience? Why improved UX is so important for the development of Tranchess? Binance UID : 181919732
Wow that’s a lot of questions! I will start by outlining what has been updated. The primary goal of Tranchess V2 was to improve the overall user experience for all types of users, whether you’re a financial professional or new to the market! This involved improving workflows within the user interface as well as liquidity across Tranchess funds to facilitate a seamless swapping experience.
Thematically, the V2 UI introduces a lot more information for those that are less familiar with Tranchess on the home page. This includes simplified explanations for each fund and its purposes, as well as easy navigation panes to bring you to their respective pages. Furthermore, each funds’ page has been enhanced to clearly portray key details in a simplified manner, whether it is through charts or enhanced interactive panels.
Finally, alongside the new introduction of Tranchess V2 AMM pools, the swapping interface has been completely revamped to provide users with options to instantly swap, stake, split and merge their tokens in one place. Instant swaps between the funds have never been easier.
Regarding your question on why the user experience (UX) is important for Tranchess’ development…we have many users navigating through the website to move their funds around on a daily basis. We envision Tranchess to be one of the leading pioneers in space and aspire to set up Tranchess as one of the pillars in DeFi, providing asset management products to all DeFi users. To do so, you must guarantee a smooth user experience for all users. Whilst we received plentiful praise on the V1 user interface, we acknowledged that there were many improvements such as liquidity and complexity of swaps. These were directly addressed by the Tranchess V2 upgrade.
Q2: How can Tranchess v2 benefit CHESS hodlers? How about veCHESS hodlers? How has v2 affected CHESS’ tokenomics? Is there anything new for DAO members? My uid is 192488931
A key feature of CHESS in the overall Tranchess tokenomic structure is that it receives 50% of protocol revenue, so naturally, more CHESS/veCHESS results in higher protocol rebate earning.
Tranchess v2 incentivizes and allows for the demand for Tranchess funds to flow seamlessly alongside rising demand, hence improving Tranchess’ protocol income and in turn benefitting CHESS/veCHESS holders. Tranchess v2 also introduces AMM liquidity provision opportunities, giving users even more ways to interact with the funds which all generate revenue for the protocol. This also implies that TranchessDAO governance now has the capability to vote amongst existing funds as well as the new liquidity pools to determine the weighting of CHESS emissions.
In summary, Tranchess v2 not only boosts the liquidity across all funds to improve the onboarding capacity of our funds to rising demand, but also provides CHESS/veCHESS holders with increased returns via improved protocol revenue. These features of Tranchess v2 join all of the already existing benefits of CHESS such as yield boosting, DAO governance, and validator node returns.
Binance uid: 76219531
Q: Let say big whales redeem native tokens like BTC, Eth and BnB all at the same time from Tranchess. Will this scenario cause a bank run?
Usually, we take sensitive questions like this very carefully. But we understand some of our users may have similar concerns of bank runs given they are echoing through the market, and provided that security has always been something Tranchess emphasizes, we would like to take this opportunity to address the issue.
Users hold Tranchess’ native tokens to take advantage of the additional yield Tranchess is able to provide via product design. All BISHOPs and ROOKs are ultimately generated by splitting QUEEN, and all QUEENs are created from BTC, ETH and BNBs. The underlying crypto assets, or BTC, ETH and BNBs, are held securely in the smart contracts, and can be redeemed at any time. In fact, over the past year, we were regularly pushed to further stake the deposited assets into other protocols for collaborations and higher yield-enhancing. We did explore multiple collaborations but unfortunately couldn’t find one that suits our needs. Because the underlying cryptos are NOT further staked in other protocols or platforms, they can always be redeemed back.
So to directly answer the question, if everyone redeems at the same time, which we certainly hope would not happen, the only thing you will see is a drastic drop in Tranchess’ TVL, but the crypto assets can always be redeemed whenever our users desire.
Of course, if everyone’s withdrawing at the same time, the waiting time for BNB will be slightly longer, because we would need to undelegate the BNBs from the validator node first. But there’s no “bank run” in any case.
All governance proposals were made by the same address owner (0xFC6D…00dE) since Dec 2021. How would you encourage community to propose improvements?
Additionally, it seems only ‘Author’ can post proposals. How actually people can make new proposals on Tranchess? Can DAO members just post proposals on Forum?
Both questions are very good questions and since they are raised by the same user, we’ve decided to address both as one question.
Proposal voting happens in two steps. Step 1, Tranchess team raises proposals on the Tranchess Forum. All proposals are open for discussion. Step 2, just like many other DeFi protocols, we use SnapShot to gather voting results. The address mentioned in the question is a treasury management address used for creating the VOTING link. The address itself has no control over the voting result, which purely depends on the community’s votes with their veChess.
I don’t think we have an identity in the Forum as “Author”, but we do understand the enthusiasm our community shares in proposing ideas to make Tranchess better. As we mentioned in previous articles when TranchessForum first launched, the Forum started as a prototype, an initial step towards full DAO. We are looking to provide access to more users for proposal raising and to ensure the proposals represent the best interest of the community, we are likely to start with active members and leaders within the community, ToTMs could be a good example.
How do you manage to guarantee Queen swap slippage? Because the conversion period of BTC to Queen takes substantial time? Will the transaction revert given enough BTC spot volatility which will result in a loss of fees and opportunity?
I want to start this answer by inviting everyone to come and try out Tranchess V2. One of the most significant optimizations we’ve made is that creations and redemptions between QUEEN and the underlying crypto assets such as BTC, ETH and BNB are now instant! For BNB redemption, which might take longer due to BNB validator node’s rule on undelegation, Tranchess also has an nQUEEN-BNB AMM pool for users that want to redeem quickly to capture market opportunities.
In fact, many of our users that want to capture market opportunities are already utilizing the newly launched AMM pools to swap BISHOP and ROOK. We have picked up this interesting pattern with Dune analysis. So instead of a loss of opportunity, I believe Tranchess V2 is there to better facilitate users in capturing more opportunities.