Leading Venture Capital Investors Three Arrows Capital and Spartan Group Back Tranchess

The Binance Smart Chain derivatives Protocol received a $1.5 million backing as major investors are beginning to turn their gaze toward projects on Binance Smart Chain.

Binance Smart Chain Backed by Big Money

Binance Smart Chain (BSC) is the hottest chain in Decentralized Finance (DeFi), and it is beginning to make positive news regarding capital investments. On July 4th via Twitter, news broke that the chess-themed DeFi management service, Tranchess Protocol, has raised $1.5 million from a seed round. The investment rounds were led by Three Arrows Capital and Spartan Group, including other notable capital investors. The chess-themed investment strategy is innovative, unique, and should prove to be a success.

Three Arrows Believes in Binance

Su Zhu, the co-founder of Three Arrows Capital, was quoted in CoinDesk confirming the firm’s belief that “the yields offered to both Bitcoin and stablecoin-denominated investors via this unique way of matching will find tremendous product-market fit.”

Zhu, also known for his podcast Uncommon Core, expressed excitement through a Twitter post about how he respects Tranchess “for the financial knowledge and acumen of the team.”

As a sound crypto analyst, it is hard not to follow the nose of Zhu when he’s leading you to an attractive product.

Benefits of the Funding For Tranchess

The Tranchess protocol just recently completed its launch on June 24, and funds of this magnitude are helpful for nearly any nascent project. The funds collected are expected to help finalize the decentralized autonomous organization of the protocol, which has been in development for more than a year. The name of the protocol is inspired by the classic game of Chess and tranches funds, which are securities that can be divided. Tranche derives from the French for ‘slice’ or ‘portion.’ The Decentralized Autonomous Organization (DAO) is expected to take over control of the protocol by the end of 2021.


Tranchess brings a special approach to asset management and derivatives trading. The protocol can create many different funds for tracking different crypto assets. Using a single main fund, called the Queen, Tranchess provides risk and return matrices that track underlying crypto-assets like Bitcoin. The fund will attract users of all types with the ability to split the Queen fund into two subgroups, Rook and Bishop. Users are then able to flex the different funds with their differing characteristics. The Rook fund is a leveraged tranche, and the Bishop is a yielding tranche. Users can sell either fun as they wish once they have split the Queen.

Concluding Thoughts

The BSC ecosystem is becoming too big to ignore, and this move symbolizes a shift in players towards the chain. Decentralized derivatives trading sure does appear to be the future. Tranchess is the first of its kind product and the future synergies it will generate in the DeFi space are bound to create. Zhu confirmed through his Twitter that he believes that Tranchess “is one to keep an eye on for sure.” 

Users should be excited to see more structured finance products in the DeFi space. The attention from major tech investors toward BSC is exciting for what is to come. With the attention of such major players, Tranchess should become a benchmark asset management solution for the DeFi space. 

To learn more about the project, Tranchess will feature as a part of the Binance Smart Chain AMA series and will appear on July 6th at 12pm UTC. Tranchess also has its whitepaper available for review. 

Source : bsc.news

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