Buying and Selling Tranche Tokens
The Tranche app is currently integrated with Compound on Ethereum, Aave on Polygon, and Yearn on Fantom, offering two tranches for each listed asset. (For a full list of assets, visit the Tranche App)
When you deposit an asset into the Tranche 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.
Fixed and Variable Tranches
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.
For each asset on the Tranche protocol, there is two Tranches, a fixed rate, and a variable rate Tranche.
1. 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:
Making a deposit decision on Tranche
The APY that you will receive for buying into the Tranche, this APY is the combination of the Tranche APY + SLICE APY
The APY allocated to the Tranche. In the case of Tranche A tokens, this is a fixed rate. In the case of Tranche B, the APY is based on the amount of Tranche A, Tranche B holders and the Base APY as
The base APY is the original rate from the protocol, and should be used for reference only.
The rewards and incentives paid out in SLICE to Tranche A or Tranche B holders, depending on the state of the system, SLICE rewards are detailed here.
The exchange rate between the deposited asset and the Tranche.
2. 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.
3. 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.
4. You can track the performance of your deposit by checking the amount under the “My Deposits” column.
Tranche tokens are perpetual, so you are able to exit a Tranche at any given point.
Withdrawing from a Tranche
1. To exit a Tranche position, you need to enable the Withdraw function in the asset. Press on the toggle in the top right in the Withdraw box.
Note that an exit fee of 0.5% of the withdrawn amount will be charged upon exiting a Tranche B position. Tranche A does not incur any fees.
2. Input the amount that you would like to withdraw, press on the Withdraw button and sign the Ethereum wallet transaction.