CHESS

The CHESS token is the governance and utility token of the Tranchess protocol, central to its Decentralized Autonomous Organization (DAO) operations. By locking CHESS, users obtain veCHESS, granting them several key functionalities. These include voting to decide the weekly CHESS emission split across various pools, earning a share of 50% of the Tranchess protocol's income as weekly rebates, and boosting their personal CHESS token earnings up to 3x. veCHESS holders also influence the split of Proof-of-Stake (PoS) staking rewards between ROOK and BISHOP.

Tranchess differentiates itself through its unique "tranche fund" inspired model, offering varied risk-return profiles from a single underlying cryptocurrency asset, which is uncommon in DeFi. A key differentiator is ROOK, providing leveraged positions without the risk of forced liquidation, a significant advantage for aggressive investors. Additionally, Tranchess V2 introduced instant swap AMM pools for BISHOP, ROOK, and BUSD, alongside instantaneous QUEEN token creation and redemption, enhancing user flexibility and liquidity. Its focus on enabling asset allocation flexibility and continuous expansion across new chains and digital assets further sets it apart in the yield farming landscape.

ROOK avoids forced liquidation through in-protocol rebalancing mechanics. When the NAV ratio between ROOK and BISHOP exceeds 2:1 or falls below 1:2, the system triggers a universal rebase that proportionally adjusts all token balances. This mathematically restores the target leverage ratio without margin calls. Additionally, borrow costs for ROOK are calculated weekly (averaging Venus Protocol rates), preventing sudden interest rate spikes during volatility.

Yes, but with limitations. QUEEN tokens are composable in lending markets (e.g., Venus) as collateral. BISHOP and ROOK require specialized integrations due to rebalance mechanics. Tranchess V2 introduced instant-swap AMM pools (BISHOP-BUSD/ROOK-BUSD) enabling liquidity provision. For Ethereum-based qETH, Balancer pools accept liquid staking tokens for yield farming with veBAL incentives.

The system trades future NAV premiums instead of spot prices, eliminating front-running risks. Makers specify percentage offsets (±10%) from the next 30-minute TWAP, allowing pricing based on anticipated market movements. Settlement occurs post-oracle update with protocol-held buffers absorbing price deviations. This achieves three objectives: 1) Manipulation resistance via TWAP oracles, 2) Forward-pricing for volatility hedging, 3) Compatibility with rebalancing tokenomics.

veCHESS confers three yield benefits: 1) Rebate distribution: 50% of protocol fees (swap/staking) distributed weekly in underlying assets, 2) CHESS farming boost: Up to 2.5x multiplier on emissions for staked tranche tokens, 3) Alpha capture: Voting power over staking reward allocation between BISHOP/ROOK holders, directly influencing returns. Lock duration determines voting weight and rebate share.

Tranchess operates its own BSC validators rather than using decentralized node operators. This allows: 1) Instant redemptions via "floating BNB" pools bypassing unbonding periods, 2) Protocol-managed slashing insurance, 3) Direct integration with tranche tokenomics (nQUEEN+). Ethereum staking uses qETH tokens similar to stETH but adds Balancer LP incentives and CHESS emissions. Unlike Lido, Tranchess validator earnings are distributed as protocol-owned revenue.