Head of Three Arrows Capital – Su Zhu – reportedly disclosed details of a rollout for decentralized finance (DeFi) protocol Tranchess across the Binance Smart Chain. 

Specifically, Zhu reportedly revealed that the freshly available DeFi protocol will function as a “Tokenized Asset Management & Derivatives Trading protocol”, with nominal features such as a Bitcoin tracking token and yield farming options for investors. 

While the initiative has a goal of operating as a multi-chain and multi-asset DeFi protocol, with designs supporting the plan of becoming a decentralized autonomous organization, this first version of the Tranchess will primarily be Bitcoin-centric. 

Tranchess 1.0 reportedly looks to establish an access gateway into a BTC price performance tracker on a correlated basis. With the initial rollout across the Binance Smart Chain, BTCB – the BEP-2 version of Bitcoin – will be required from users to complete the process. 

As detailed in the initiative’s white paper, users swap BTCB and earn QUEEN – the primary native token – back. Alternatively, investors are able to purchase QUEEN using USD coin (USDC) on supported exchanges.

Having QUEEN tokens in their possession will reportedly grant users the ability to be associated with the protocol sub-fund or tranche. Enrolling a chess concept to the features, the sub-funds will be called BISHOP and ROOK. Investors only split their QUEEN tokens into BISHOP and ROOK at a 50-50 ratio.

“If you are holding BTC, create the Queen token. If you are holding USDC, create the Bishop token,” the 3AC chief explained how Tranchess-based farming enables single-asset staking, as an effort to counter impermanent loss.

Aside farming, one additional option is reportedly available, by entering a leveraged long position on Bitcoin through the ROOK token, but “there’s no forced liquidation nor funding cost spike”, as Zhu claimed.