DeFi protocol supported by 3AC Tranchess has been launched to track the performance of Bitcoin.

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Tranchess is now live on the Binance SmartChain, offering investors a Bitcoin tracking token as well as yield farming options.

Su Zhu, CEO of Three Arrows Capital, has announced the launch of Tranchess, a decentralised finance (DeFi) protocol.

Tweeting on Thursday, Zhu described Tranchess as a “Tokenized Asset Management and Derivatives Trading” protocol.

The QUEEN token allows users to participate in the protocol’s sub-fund or Tranche. The sub-funds are dubbed BISHOP and ROOK, in keeping with the chess theme. Investors only need to split their QUEEN tokens 50/50 into BISHOP and ROOK.

According to Zhu’s tweet, farming on Tranchess allows for single-asset staking to compensate for impermanent loss. “If you have BTC, create the Queen token. Create the Bishop token if you have USDC,” the 3AC chief added in the Twitter thread.

According to the project’s white paper, users swap BTCB in exchange for QUEEN — the main native token. Alternatively, investors can acquire QUEEN with USD Coin (USDC) on supported exchanges.

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The QUEEN token allows users to participate in the protocol’s sub-fund or Tranche. The sub-funds are dubbed BISHOP and ROOK, in keeping with the chess theme. Investors only need to split their QUEEN tokens 50/50 into BISHOP and ROOK.

According to Zhu’s tweet, farming on Tranchess allows for single-asset staking to compensate for impermanent loss. “If you have BTC, create the Queen token. Create the Bishop token if you have USDC,” the 3AC chief added in the Twitter thread.

Aside from farming, the ROOK token can be used to enter a leveraged long position on Bitcoin. However, as Zhu points out, “there is no forced liquidation or funding cost spike.”

Whereas exchanging BTCB for QUEEN is referred to as the “creation” step, Tranchess users can also go in the opposite direction by exchanging their QUEEN tokens for BEP2 Bitcoin, which is referred to as the “redemption” step. Previously, the user would have merged the BISHOP and ROOK tokens into a single QUEEN “coin.”

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Back in July, Tranchess secured $1.5 million in seed funding from notable backers like 3AC, Spartan Group, IMO Ventures, Longhash Ventures and Binance Labs.

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