Tranche is a decentralized protocol for managing risk that allows users to slice any interest accrual token into a fixed rate and variable rate component.
January 23, 2022
Tranche is committed to high security standards. All smart contracts are independently reviewed by leading auditors and consultants. Contract code is publicly verifiable, and bug bounty programs are available for security professionals to report vulnerabilities.
Tranche Finance (SLICE) is a decentralized protocol for managing risk and maximizing returns. The protocol integrates with any interest accrual token, such as compound’s CTokens and AAVE’s ATokens, 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 USDC and dai 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. SLICE holders and liquidity providers can lock-up their SLICE and SLICE-LP tokens to earn additional rewards distributed on weekly, monthly, bi-annual and annual schedules.
SLICE holders dictate the direction of the protocol. Holders can vote on adjusting protocol parameters, introducing new pairs, integrating new protocols or allocating treasury funds.
CTokens and ATokens provide a mechanism to accrue interest just by holding a digital asset. These tokens are minted and redeemed when users deposit or withdraw a digital asset in compound, Aave or other similar protocols. As the money market accrues interest, which is a function of borrowing demand, CTokens / ATokens become convertible into an increasing amount of the underlying digital asset. In this way, earning interest is as simple as holding a A Token. These tokens effectively represent your balance, including Interest.