DeFi protocol tranche raises $ 1.5 million in funding round led by Three Arrows, Spartan
Tranchess Protocol, a chess-themed DeFi asset management platform, raised $ 1.5 million in a funding round led by Three Arrows Capital and Spartan Group.
Other notable investors include Binance Labs, Longhash Ventures, IMO Ventures and key opinion leaders wishing to remain anonymous, according to a press release released on Monday.
The money collected will be used to continue the expansion of the project and its aspirations to become a multi-chain solution while completing the development of its decentralized autonomous organization (DAO).
Tranchess, which has been in development for nearly a year, launched on June 24 through Binance’s Smart Chain, an ecosystem designed for budding DeFi apps running smart contracts.
In essence, the protocol seeks to provide a risk / reward matrix from a single main fund, known as Queen, which tracks a specific underlying crypto asset.
The protocol began by tracking bitcoin’s movements, with the intention of adding more assets later. The fund will attempt to serve a variety of clients with varying risk appetites, as a user can split their fund into two sub-funds, Rook and Bishop, according to the release.
Bishop, being a yield tranche, has no exposure to the price of bitcoin while the Rook fund, being a leveraged tranche, has twice the exposure to price movements in the underlying crypto.
Once a user divides their Queen fund into these sub-funds, users can then sell a fund instantly, leaving them with either fixed income or leveraged bitcoin exposure, a spokesperson for the project said. to CoinDesk via Telegram.
“The main fund, Queen, currently tracks bitcoin and can be split into 0.5 Bishop token and 0.5 Rook token,” the spokesperson said. are essentially a 2x leveraged token for bitcoin.
Its chess-inspired theme borrows from certain game concepts, including the game theory implementation of the Bishop interest voting system allowing users to vote on the amount of interest generated in the fund. Meanwhile, the governance token – used to vote and make decisions about the protocol – is called Chess.
“We believe the returns offered to bitcoin and stablecoin-denominated investors through this unique means of matching will find a great fit to the commodity market,” said Su Zhu, co-founder of Three Arrows Capital.
The project said it aims to transfer protocol management to DAO by Q4 2021, along with associated 2.0 applications.