DeFi Protocol Batch Meets Goal of Becoming Binance Smart Chain Validator Node, Launching BNB Fund

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2022-01-14 11:13:37

Running a BSC validator node brings an additional revenue stream to the protocol and helps BSC become even more decentralized, said co-founder Danny Chong.

Tranchess, an asset tracking DeFi protocol that prioritizes risk management solutions, announced that it has launched a BNB fund as a BSC validator, turning the protocol away from generating net revenue. drug from token emissions (creation and sale of new tokens).

  • This BSC fund complements existing BTC and ETH tracking funds, providing moderate leverage for yield farming.

  • Danny Chong, co-founder of Tranchess, told CoinDesk that Tranchess V2 ticker BNB fund cites new income streams available from acting as a validator (rewards from the network are given to validators for processing). manage and verify transactions on the Proof of Stake network).

  • In an interview, Chong cited BSC’s strict authentication requirements as the reason why Tranchess chose it over PoS protocols for scaling. An example is a higher staking threshold for confirmation: while the Ethereum network requires a minimum of 32 ether stake, BSC requires close to 1,000 BNB stake ($4.6 million worth) although many have as many as 800,000 BNB stake (worth approximately $384 million). Using the BSC also opens up the possibility of cross-chain compatibility, he said.

  • “The complexity involved in being a validator currently precludes many protocols from converting their pure token emissions model into a more diversified revenue model that generates consistent alpha returns for users,” he said, noting that inactive validators or people the community deems not pulling their weights are banned from the BSC.

  • Batch acts as a validator helping to make BSC more decentralized. With a relatively small number of validators, BSC has been criticized for its centralization.

  • Another example of a similar pattern can be found with Band Protocol, a data oracle. It runs a validator protocol on the Fantom network. Band Protocol earns income from being a validator which in turn increases the value of the token.

  • In a tweet from April 2021, Messari’s Wilson Withiam pointed out that many of the current validators on BSC have close ties to Binance.

  • In August, Tranchess closed a $1.5 million round led by Three Arrows Capital and Spartan Group.

  • Tranchess Chess token is up 8.6% on the day according to CoinGecko, and is set to open the US session at $1.86. BNB is up 4.5% during the Asian business day.

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