What Is Tranche Finance (SLICE)?
Tranche Finance splits any interest generating asset from the DeFi ecosystem into two new assets; a fixed-rate asset that manages risk, and a variable-rate asset that maximizes returns. Tranche is a decentralized protocol for managing risk and maximizing 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. Users can deposit assets into Tranche A and receive a fixed-rate return, or deposit into Tranche B and receive variable returns that are higher than the underlying protocol.
Tranche Finance Storage Key Points
|Coin Name||Tranche Finance|
|Circulating Supply||20,000,000.00 SLICE|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Voting Using SLICE or SLICE-LP Tokens
Tranche Finance dictate the direction of the protocol. Holders can vote on adjusting protocol parameters, introducing new pairs, integrating new protocols or allocating treasury funds. For example, if you deposit DAI into Tranche A, you receive “Tranche A cDAI – ACDAI” tokens that guarantee you the displayed fixed rate, in addition to any additional SLICE rewards (described here). While if you deposit DAI into Tranche B, you receive “Tranche B cDAI – BCDAI” tokens, in addition to any additional SLICE rewards if found.
Buying and Selling Tranche Tokens
When you deposit an asset into the Tranche Finance 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.
Buying Tranche Tokens
Tranche Finance To learn more about each Tranche, expand the box by pressing anywhere on the card. You’ll see more information on the breakdown of the yield of the asset. To deposit into and buy the Tranche token, you need to first enable the spend of your asset by pressing on the toggle on the top right token of the Deposit section. This action requires you to accept the transaction pop up on your Ethereum wallet. After you enable deposits, input the amount that you would like to purchase, and click the deposit button. After depositing, you’ll receive an equivalent amount of your deposit in the form of Tranche tokens. You can track the performance of your deposit by checking the amount under the “My Deposits” column.
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 and ETH or SLICE and DAI on Uniswap, you are providing liquidity for the respective trading pairs, allowing existing additional participants to smoothly interact with ecosystem. For this reason, Tranche Finance are rewarding users who stake SLICE LP tokens. By providing SLICE-LP or SLICE tokens to staking pools, you are contributing to the safety and sustainability of the protocol. To learn how to stake, watch the video below, or read the instructions that follow.
Tranche Finance After each epoch end, you will be allocated a reward for staking SLICE during that epoch. You can either claim your reward every week, or save on gas fees and do it once you are ready to withdraw. In the event of protocol insolvency the staked SLICE acts as the protocols backstop module, preventing Tranche losses. LP Staking To ensure constant liquidity in Uniswap Pools, LP staking incentivizing users to provide ETH, Dai and SLICE into Uniswap contracts.
Tranche Finance 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 uses Snapshot, an off-chain, open-source, governance client for voting. Navigate to the Tranche Governance page to get started.
Tranche Improvements Proposals (TRIPs)
Tranche Improvement Proposals Tranche Finance 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. In order to submit a proposal, users must hold a minimum amount of 10,000 SLICE. Proposals should come in actionable form, proposing a specific course of action, in order to allow community members to vote for or against the proposal.
In addition, proposals should be sufficiently detailed to allow them to be easily and efficiently implemented if successful. Proposals must get at least a 20% participation rate, with a majority of the vote (over 50%) being in favor of the proposal.