The Tranche app is currently coordinated with the Compound convention
Overview
Yield farming is a means of earning interest on your cryptocurrency, similar to how you’d earn interest on any money in your savings account. And similarly to depositing money in a bank, yield farming involves locking up your cryptocurrency, called Staking for a period of time in exchange for interest or other rewards, such as more cryptocurrency.
Your bank pays you a quarter percent. But some cryptos will pay you 6% or even way more for locking in funds for the true believers in any particular decentralized finance (DeFi) protocol. If you’re not afraid of watching your token’s value fall 20% or more, then DeFi yield is your next crypto investment.
Yield-paying DeFi cryptos are one of the main reasons why cryptocurrency investors have been diversifying from Bitcoin to the alt-coin universe, led by Ethereum. Here I am introducing another potential Yield paying Project with unique features named Tranche Finance.
What is Tranche Finance?
Tranche is a decentralized protocol for managing risk that allows you to invest in leading DeFi protocols at your preferred risk level. For any yield-generating asset in the DeFi realm, Tranche could deploy two assets: Tranche A, fixed-rate tokens, and Tranche B variable-rate tokens.
Tranche splits any yield-generating asset from the DeFi ecosystem into two perpetual assets: a fixed rate asset that lets you manage your risk, and a variable rate asset that maximizes your returns.
The protocol integrates with any interest accrual token, such as Compound’s cTokens, AAVE’s aTokens, and Yearns strategies, to create two new interest-bearing instruments, one with a fixed-rate, Tranche A, and one with a variable rate, Tranche B.
The Tranche Ecosystem
Tranche has three core modules: Tranche, Stake, and Vote.
- Tranche — The Tranche app is currently integrated with Compound on Ethereum, Aave on Polygon, and Yearn on Fantom, offering two tranches for each listed asset. When you deposit an asset into the Tranche protocol, it is transferred automatically to the relevant protocol and starts generating yield instantly. In return, you receive a Tranche token that is redeemable, plus any yield generated, at any point — perpetually — back to the underlying asset that was deposited. The yield depends on the type of Tranche you deposit into, fixed Tranches give you a predictable rate, while variable Tranches depend on market conditions and the fixed Tranche deposits, so they might be significantly lower or higher.
- Stake — To ensure liquidity and incentivize participation in governance and protocol utilization, three staking modules were introduced — SLICE staking, SLICE-ETH LP staking, and SLICE-DAI LP staking. Users can stake any of the three tokens and receive SLICE rewards paid out weekly. By providing SLICE-LP or SLICE tokens to staking pools, you are contributing to the safety and sustainability of the protocol.
- Vote — SLICE is a governance token that enables community members to have a say in the direction of the protocol and its funds. SLICE holders control and govern the network. Holders propose and vote on proposals, modify different parameters, and are incentivized for doing so. Tranche Improvement Proposals (TRIPs) allow holders to submit what they would like to change about the ecosystem. This can range from the rewards of the staking module, fixed interest rates, ecosystem incentives, treasury management, among others.
Tranche DAO
The Tranche protocol is managed and powered by the Tranche DAO.
Participants & Components of the DAO:
- Tranche Treasury: Protocol’s fee collector and distributor. The Treasury allows $SLICE to act as a decentralized crypto-capital asset. Platform-generated fees are directed to the Treasury.
- SLICE Community: Token holders, community members, and users of the Tranche protocol. Token holders vote on protocol parameter sets, including fees collected and rewards distributed by the Tranche Treasury.
- Governance Module: The voting mechanism on the tranche Protocol. This allows $SLICE holders to propose and vote on Tranche Improvement Proposals (TRIPs).
- Backstop Module: The lender of last resort on the Tranche Protocol. The backstop module provides funds to cover any deficit incurred in extraordinary circumstances, while simultaneously allowing SLICE holders to provide liquidity and earn rewards.
- Core Tranche Contributors: The core team behind the development of the Tranche protocol and $SLICE token. The team is responsible for implementing successful community proposals.
SLICE Token
$SLICE is the utility token on the Tranche Finance ecosystem. Tranche incentivizes users with SLICE tokens, with the ultimate objective of maintaining the solvency of the individual tranches and the protocol as a whole.
SLICE Utility
SLICE is utilized in the three main verticals of the Tranche ecosystem:
Staking — SLICE or SLICE LP token provides stakers with SLICE rewards every week.
Voting — SLICE holders can vote on platform issues and parameters or allocate funds from the treasury.
Holding — SLICE holders benefit from holding because of platform fees being exchanged for SLICE
Tokonomics
Token Name: Tranche Finance
Token Ticker: SLICE
Circulating Supply: 16,919,343 SLICE
Conclusion
In decentralized protocols, tokens are used to incentivize behavior. In Bitcoin, miners maintain the network, facilitate transactions, and are rewarded BTC for doing so. On Compound, borrowers and lenders are incentivized with COMP based on the utilization of each market. Similarly, Tranche incentivizes users with SLICE tokens, with the ultimate objective of maintaining the solvency of the individual tranches and the protocol as a whole.
Read More Here
Website: https://tranche.finance/
Twitter: https://twitter.com/TrancheFinance
Medium: https://tranchefinance.medium.com/
Discord: https://discord.com/invite/Nv44PTdF3K
Proof of Author
Bitcointalk Username: Asih Titi Pangestuti
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=3248195
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