Summary
In continuation of the successful BTC & ETH funds currently on Binance Smart Chain, Tranchess intends to launch the 3rd fund with Binance Coin (BNB) as underlying. BNB being the native token of Binance Smart Chain offers good potential for collaborations & alpha revenue streams; The addition of BNB fund would deliver a good growth to Tranchess’s TVL & protocol revenue - Improving Chess holders’ overall returns.
Abstract
Tranchess has been steadily increasing its TVL from inception to well over $1.5 Billion currently; A strong growth-oriented community has been established alongside and continues to flourish. TranchessDAO’s first proposal resonates Tranchess community’s thoughts and presents in itself a strong proposal delivering strong economic impact and viability.
The DAO development took time and was straddling resources with functionality/new fund releases these few months. The coming of DAO signals the next step of growth and maturity of the protocol itself.
BNB is the largest token in circulation on BSC with a total of $13 bn in circulating market cap; Selecting BNB as the next fund to be developed was the natural choice. The potential collaborations with BSC protocols and the various ways to earn alpha revenue streams, firms the opportunities to derive higher returns for Tranchess users overall.
Motivation
TVL growth is of intrinsic importance to Tranchess but the greater focus is on the increasing protocol earnings of Tranchess in the long run. With the introduction of the BNB fund, chess lockers will benefit from a larger rebate pool, therefore higher APY returns. BNB holders will of course earn yields by staking BNB Queen or Rook tokens depending on their risk appetites. The BNB fund will be targeted for a structural improvement this time: we are looking to seek active returns for our BNB fund, making it more of an alpha generating fund rather than just a pure tracking fund. This will be achieved through collaborations and partnerships with various major players within the ecosystem.
(Firm details to be announced later).
Tranchess protocol will look to create a revenue stream through the introduction of a performance fee, part of which will also be distributed to all CHESS lockers. The BNB fund creation will be in essence - A multi-win situation for each and every player within Tranchess.
For
- Increase in protocol rebates for CHESS lockers (i.e. higher CHESS APY)
- Active collaboration with major protocols on BSC
- Increase in demand for CHESS and locking preposition
- BNB stakers’ potential benefit from enhanced yield via alpha-generation
Against
- Potential decrease in returns from BTC and ETH fund users
- Prioritization of BNB fund over other developments
Please click here to vote on Snapshot.
For more information on BNB, please click here.
(Updated at 2pm UTC, Dec. 10, 2021)
Dear Tranchess Community,
The Snapshot voting is now closed and the result is in!
You can also view the result via the Snapshot voting link above.
Thank you for your participation. The countdown to the launch of the BNB fund now begins. 