What is Tranche Finance (SLICE)?
Tranche Finance is a decentralized protocol for managing risk and maximizing returns. The protocol integrates with any interest-bearing token and assets from the DeFi ecosystem to create two new tokens: a fixed-rate asset that provides stable returns to users looking to manage risk and another asset that allows users to maximize returns. Tranche is a french word for a slice or a portion. This describes the slicing up of one token into two portions.
Tranche Finance protocol allows users to create different risk profiles from DeFi cash flow. Users can borrow and lend funds as well as use the loan smart contracts to create new assets with different payout method schedules. The Tranche ecosystem currently provides a system for lending and borrowing loans thereby earning assets and its native token SLICE. On the Tranche Finance price chart featured above, you can see the current SLICE price.
The platform brings the concept of debt seniority to decentralized finance. It does this by integrating with interest-bearing tokens and creating debt waterfalls, thereby implementing this debt-seniority mechanism to cashflows from Compound, AAVE, and Yearn. It has the ability to deliver extremely high APYs, sometimes reaching 60% paid in the deposited assets.
The platform has an App that is integrated with Compound on Ethereum, Aave on Polygon, and Yearn on Fantom, offering two tranches for each listed asset. When an asset is deposited into the Tranche protocol, it is transferred automatically to the relevant protocol and it starts generating yield instantly. In return, users receive redeemable SLICE tokens, plus any yield generated, back to the underlying asset that was deposited. The yield is dependent on the type of Tranche you deposit into. Fixed Tranches give users a predictable rate, while variable Tranches depend on market conditions and the fixed Tranche deposits.
Use Cases of SLICE Tokens
SLICE is the native token of the tranche ecosystem and it can be utilized in many ways. For starters, the SLICE coin is used to incentivize holders and the users of the Tranche protocol, with the ultimate objective of maintaining the solvency of the individual tranches and the protocol as a whole.
Holders of the tranche token can also stake the tokens by locking them up and providing liquidity on several decentralized exchanges, thereby ensuring that Tranche remains solvent, as well as contributing to the safety and sustainability of the protocol. The stakers are rewarded at the end of the lock-up period with SLICE crypto tokens.
Furthermore, SLICE is the governance token of the Tranche protocol that enables community members to have a say in the direction of the protocol and its funds. Holders propose and vote on proposals, modify different parameters, and adjust protocol parameters. Tranche uses Snapshot, an off-chain, open-source, governance client for voting.
Make sure to analyze the aforementioned Tranche Finance price chart. It features the current and the previous SLICE price.
Who Founded Tranche Finance?
The Tranche Finance crypto project was developed in 2020 by Jibrel, which is a Switzerland-based blockchain development company. Other projects of the company include Jwallet, Jticker, and Jnode.
Tokenomics of SLICE
There is a maximum supply of 20 million SLICE tokens. Every year, a portion of SLICE tokens gets distributed as part of the rewards mechanisms built into the protocol. Being an ecosystem run by a DAO, 70% was allocated to community holders, with another 15% given as rewards for participation in the Tranche protocol ecosystem. The remaining 15% was earmarked for the development of the ecosystem.
Besides, a 2% inflation mechanism has been built into the token. It helps to maintain the stability of the SLICE price.
