Tranching in DeFi: From Wall Street to Smart Contracts
2 min read
The history of tranching, how it works in structured finance and how Tranchess adapts it on-chain.
A traditional idea
Structured products split cash flows into senior and junior tranches so different investors can share the same assets with different risk.
On-chain version
Tranchess implements this with transparent smart contracts: BISHOP plays the senior role, ROOK the junior one. Read the overview.
Independent educational resource, not affiliated with Tranchess. Nothing here is financial advice. Crypto assets are volatile — do your own research.
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An in-depth explanation of QUEEN, BISHOP and ROOK — the three Tranchess tranches — with a worked numeric example, leverage mechanics, interest, rebalancing and a full comparison.
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