Research Summary
The report discusses the launch of Tranchess v3, a DeFi protocol that allows Ethereum staking token holders to explore greater potential returns. The protocol has been audited multiple times and has attracted significant total value locked (TVL). Tranchess v3 introduces new features and products, including wstQUEEN, turYETH, and staYETH, offering users a combination of fixed income and leveraged enhancement strategies.
Key Takeaways
Tranchess v3’s Launch and Background
- Launch of Tranchess v3: Tranchess v3 was launched to allow Ethereum staking token holders to explore greater potential returns. The protocol has been audited seven times, with the last audit taking place on December 28, 2023.
- Tranchess’s History: Tranchess was born during the DeFi Summer of 2020 and received early funding from Binance Labs and Spartan Group. It initially focused on layered funds, offering yield products on the BSC with BTC and ETH as the primary assets.
Tranchess v3’s New Features
- Introduction of wstQUEEN: Tranchess v3 supports the use of stETH and wstETH, which can be converted into wstQUEEN at a 1:1 exchange ratio. wstQUEEN can be redeemed for stETH or wstETH at any time.
- Introduction of turYETH and staYETH: Users can split wstQUEEN into turYETH and staYETH at a certain ratio. turYETH offers a higher yield potential with leverage, while staYETH provides relatively stable returns. Both tokens have no lock-up period.
Tranchess v3’s Performance and Future Prospects
- Performance of Tranchess v3: As of March 20th, Tranchess v3 has attracted over $5.8 million in stETH. The protocol has been successful in addressing the pain point of users being able to maintain stable annualized returns while also considering risk strategy adjustments.
- Future Prospects: Tranchess v3 may expand to more LSTs in the future. With the new architecture of wstETH, staYETH, and turYETH, users can enrich the possibilities of their staking token earnings through a combination of fixed income and leveraged enhancement strategies.
Actionable Insights
- Monitor the Performance of Tranchess v3: Given the significant TVL attracted by Tranchess v3, it would be beneficial to monitor its performance and the returns it offers to Ethereum staking token holders.
- Understand the Functionality of wstQUEEN, turYETH, and staYETH: These new features introduced by Tranchess v3 offer different risk and reward profiles. Understanding their functionality could provide insights into potential yield strategies.
- Stay Updated on Tranchess v3’s Expansion: Tranchess v3’s potential expansion to more LSTs could offer additional opportunities for Ethereum staking token holders. Staying updated on these developments could be beneficial.
