Tranchess Protocol, one of the major projects in the decentralised finance (DeFi) space, is a platform where users can store, invest, or withdraw their crypto assets. This platform provides users with various risk-reward solutions, allowing them to easily deposit or withdraw their crypto assets while also opening the door to higher returns. The protocol is among the most popular platforms in the DeFi space and implements security measures to ensure the safety of users’ crypto assets.

Innovative investment solutions are emerging in the DeFi space that solve common problems in the industry while supporting users to earn better returns. In addition to risk-reward solutions, the protocol also provides asset management services and operates as a secure platform. In this article by Zatrun.com, we will examine in detail what Tranchess is, how it works, and how users can benefit from it.

What is Tranchess (CHESS)?

Tranchess is an asset tracker that increases investors’ profits through various risk-reward solutions. This protocol provides a different risk-reward matrix than a single main fund that tracks a specific underlying asset.

The project’s name was inspired by the game of chess and the French word “tranche,” which is often associated with funds that cater to different investor classes with different risk appetites. Since its launch on June 24, 2021, it has continued to grow and develop.

The ecosystem is currently managed by four different cryptocurrencies: CHESS, QUEEN, BISHOP, and ROOK. The main tranche fund consists of QUEEN tokens, which are indexed to the price of BTC, and this fund can be divided into two sub-funds.

In the sub-funds, you can track the price data of any cryptocurrency you want, and the platform shows you how to calculate your own risk-reward ratio to make a profit. However, the project also includes many popular DeFi features such as single-asset yield farming, borrowing, and lending, and token trading.

How Does It Work?

Tranchess Protocol is founded by Co-Founder Danny Chong and his team. The project was launched in 2020 with a team of different experiences and roles, from technology companies like Google, Facebook, and Microsoft to Investment Banks like Morgan Stanley, UBS, and BNP Paribas.

The platform was released in the summer of 2021. The blockchain is currently on the BNB Chain and is managed by a BEP-20 token called CHESS. Blockchain uses smart contracts that make it transparent and automatic during processes and allows users to earn more profits while tracking assets.

These assets include BTC. Users can make money by lending their tokens and earn additional profits through leverage without forced liquidation. Users can also receive a share of platform earnings as part of staking returns. The Tranche ecosystem is profitable in terms of both net asset value (NAV) and yield.

What is CHESS Crypto?

CHESS is one of four cryptocurrencies in the Tranchess ecosystem. This cryptocurrency functions as a governance token within the ecosystem and uses the BEP-20 smart contract. By staking QUEEN, BISHOP, or ROOK tokens in the protocol, you can mint CHESS coins.

When you mint these tokens, you must stake your CHESS cryptocurrencies, allowing you to participate in platform governance, earn a share of profits, and earn more CHESS coins by veCHESS. The cryptocurrency can be used as a governance token, as well as for passive earnings or investment purposes.

If you believe in the Tranchess project and expect the price to rise, you can buy and sell CHESS coins on secondary exchanges. Through these trades, known as “Trade,” you can manage your funds and increase your profits.

Is CHESS a Good Investment?

Tranchess reached a total TVL of 1 billion on August 27, 2021, an important indicator of the success of a DeFi protocol. The project allows investors to maximize profits by providing risk-return solutions. The platform currently offers higher returns than many other DeFi protocols, leading investors to turn to the project.

However, the price of the cryptocurrency experienced a significant decline from the beginning of 2022 to the present. CHESS coin, which was trading at $5.35 in August 2021, is currently around $0.24. With a market value of $28.5 million, the protocol ranks as the 542nd largest cryptocurrency, indicating that the asset is not in a particularly bad position.

In fact, the bear market that began in 2022 has caused all cryptocurrencies, including CHESS coin, to decline. As a result, a market recovery could lead to an increase in the price of the cryptocurrency.