Summary:
This proposal is to retire two product offerings: qETH fund on Ethereum and ETH eQUEEN fund on BNB Chain.
After carefully evaluating market dynamics and operational efficiency and months of internal debate, we propose retiring these two funds as they no longer align with our strategic direction. The proposal is an effort to streamline our offerings and focus on areas with greater growth potential. We aim to optimize our resources and continue to provide our users with the most demanding yield solutions.
The discontinuation process, should this proposal be approved, would take about 5~6 months to finish. We will detail the critical timelines below.
Abstract:
As part of our ongoing efforts to optimize our operations and better align with market trends, we have carefully reviewed our current product offerings. After much consideration, we propose the retirement of qETH and eQUEEN from our portfolio. This is not an easy decision and both funds have played an important role in Tranchess’ evolvment. However, the DeFi world changes rapidly, and we must constantly adapt to provide the best user experience.
qETH first appeared with Ethereum’s successful Shanghai upgrade. Though it never became the star of our product offerings, it was a crucial step in our integration into the Ethereum ecosystem. Unfortunately, despite our efforts, qETH cannot fully distinguish itself in a way that captures significant user interest in the ETH liquid staking sector, and the resources it requires to maintain are no longer justifiable given its limited market impact.
eQUEEN was a highly anticipated fund after our successful hit with the BTCB fund. It undoubtedly attracted much attention and provided yielding options for the ETHs on the BNB Chain at the time. While it still contributes a steady part to our TVL, its product model no longer aligns with market demand, as it is quickly evolving for new, interesting designs. In light of these shifts, we recognize that continuing to support eQUEEN presents increasing operational burdens without the opportunity for meaningful growth.
Though it is with some regret that we make the decision to retire these products, we believe this strategic move will allow us to focus on areas where we can have a greater impact and continue to provide high-value solutions to our users.
Here is a rough timeline for the changes that would take place if the proposal is approved:
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Voting is open from 14:00 UTC, January 3 to 14:00 UTC, January 10, 2025.
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If the proposal is approved, this is a rough timeline for the qETH Fund:
- Closing the creation function for qETH and removing the qETH-ETH Balancer pool CHESS emission voting option from the governance page.
- Closing all existing validator nodes: 5~10 days
- Once all ETHs in the validator nodes are redeemed, upgrade the current smart contract for instant withdrawal support: 1~2 weeks.
- We expect to keep the qETH redemption page up for approximately 3~4 months, with the exact duration depending on the progress of ETH redemptions.
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If the proposal is approved, this is a rough timeline for the eQUEEN Fund:
- Announcing the retirement of eQUEEN fund; removing the redemption & merge fee.
- The CHESS emission voting option for “ETH on BNB Chain” will be removed from the governance page.
- We expect to leave a three-month window for eBISHOP and eROOK holders to swap back to QUEEN and redeem. During this window, any and all rebalances will be processed as usual.
- We might prolong the 3-month window depending on the progress of redemptions.
- After the 3-month window, change the interest rate to 0 and the t-wap oracle to a constant. This will stop the fair values of eBISHOP and eROOK from changing, preventing future rebalances.
- Closing the creation function for eQUEEN; removing the CHESS emission voting option for the eBISHOP-USDC pool from the governance page.
- We expect to keep the eQUEEN redemption page up for approximately 3~4 months. The exact duration depends on the progress of ETH redemptions.
The timeline is for reference only. We will announce each step with more details once the retirement process starts.
Motivation:
This proposal aims to enhance our operational efficiency and refocus our resources on areas where we can deliver the most value. As market landscapes evolve, it is crucial to ensure that our product portfolio remains aligned with industry trends and users’ needs. By retiring these two products, we aim to strengthen our position in more promising areas while minimizing unnecessary costs and maintaining our commitment to quality and innovation.
For:
- Resource Optimization: Retiring the two funds will free up valuable resources, allowing us to redirect efforts toward more promising areas with product design.
- Market Alignment: Both funds no longer align with current market trends, and removing them will allow us to stay more attuned to emerging customer demands and future growth opportunities.
- Cost Efficiency: Maintaining these products incurs ongoing operational costs and onchain fees with limited returns. Discontinuing them will help reduce these costs and improve overall efficiency.
- Focused Innovation: By narrowing our product offerings, we can concentrate on areas where we can have a greater impact, fostering innovation and competitive differentiation.
Against:
- Customer Transition: Customers who are currently using these two funds may experience disruption, requiring careful communication and support to exit.
- Brand Perception: Removing the two funds could potentially affect our brand’s perceived breadth of offerings, especially for users who value these products.
- Short-Term Loss: Discontinuing the two funds might have an immediate impact on short-term revenue loss, especially in niche segments that still value the existing products.
Snapshot voting will be open from 14:00 UTC on January 3 to 14:00 UTC on January 10, 2025. When voting starts, all veCHESS on BNB Chain and Ethereum will be eligible to vote.