TrancheFi

TrancheFi is a two-tranche yield vault built on Bitcoin credit. Leveraged sUSDat @saturn_credit (STRC wrapped on chain) produces a conservative estimate of 12.86% pool yield. The waterfall pays out in order: 1. Senior fills first. 8% net. Zero drawdowns. Paid before anything else. 2. Everything left over flows to junior. 20-25% net. Amplified because the overflow concentrates on 30% of the pool. Same collateral. Same pool. One investor's stability is another investor's amplified return. Backtested on 149 days of real STRC data through two Bitcoin crashes. Senior: zero negative weeks. Junior: recovered every drawdown within 3-6 weeks. Structured finance meets DeFi infrastructure. More soon.

@0xfarmed @turtledotxyz TrancheFi coming soon @ TrancheFi.io

Top APR opportunities on @turtledotxyz Ethereum: • msvUSD: 33.0% APR $3.2M TVL Base: • yoUSD: 19.6% APR $3.4M TVL Katana: • Yearn USDC: 7.7% APR $21.7M TVL Total: $73.9M across all vaults

Early projects (some are hiring…) NFT • Orbis (@orbispfp) • Traitor Bot (@traitorbotfun) DeFi • Aqueduct Finance (@AqueductFinance) • Defi Pazar (@defipazar) • EnshrinedDEX (@EnshrinedDEX) • Tomorrow Loans (@tomorrowloans) • Tranche DeFi (@tranchedefi) Prediction Markets • Binary Loops (@binaryloops) • FareUp (@fareupapp) • Markit Markets (@markit_markets) GameFi • Beyond Play (@beyondplay_xyz) • Big Dance (@bigdance_fun) • Traded GG (@traded_gg) Trading Tools • Hyperdash Trades (@hyperdashtrades) • TradeOnStrat (@tradeonstrat) • Valinor (@valinor_eth) SocialFi • Beacon (@usebeacon256) • ChatDot (@chatdotfun) • Verifluence (@verifluence) Infra & Launchpads • Artem Tracker (@artemtracker) • Blockrock Fund (@blockrockfund) • Control Deploy (@controldeploy) • DACC Fund (@daccfund) • Give Protocol (@giveprotocol) AI Memory & Infrastructure • Signets (@signets_ai) • Aurora Mastery (@auroramastery) • SkeptAI (@getskeptai) AI Projects • AgentCTX (@agentctx) • DeAI Fang Lab (@deai_fanglab) • Guayaba (@guayabadotrun) • Keep Being Alive (@keepbeingalive) • Molty Pics (@moltypics) • SWRD AI (@swrdai) • The Claw Book (@theclawbook) all Web3-native projects mostly Base/Eth/Solana I cleaned and curated the raw data for you, so get to work

@Defi_Scribbler @OrbisPFP @traitorbotfun @AqueductFinance @defipazar @EnshrinedDEX @tomorrowloans Thanks for the mention! Check out the product @ TrancheFi.io Levered digital credit pool. Senior 8% near 0 volatility, structurally protected by junior tranche who yields 20-25%

@scraymondjr @Z06Z07 That would be the senior tranche. TrancheFi team is building this now @ TrancheFi.io

@Z06Z07 What is the Sharpe ratio of a $STRC wrapper that offers a lower yield, say 8%, with 0 volatility? 💥

Note: All math is calculated in the table. Just look at it. Sharpe Ratio = Yield - Risk Free Rate / Volatility As long as the volatility for $STRC goes down(assuming Yield and RFR stay the same), then the Sharpe Ratio goes up. Sharpe ratios above ~4 are extremely rare in finance . When you see 5+, you’re not looking at a better asset, you’re looking at a different structure. @Strategy

As an unwavering long-term Bitcoin bull, when you see how big the opportunity for Digital Credit is, you realize going all-in on $SATA is the clear answer to maximize long-run Bitcoin per share for $ASST common equity shareholders. Remove distractions & keep laser-like focus!

@IIICapital @Strategy @Strive All of these moves do maximize bitcoin per share because it makes the entire strategy more sustainable, it also is moves towards the entire financial system being built on digital credit. Building this at TrancheFi.io

A subtle but important shift has occurred at @Strategy and @Strive, where there has been a clear emphasis on preserving and improving the credit profile of Digital Credit, even amidst Bitcoin volatility. Historically, the focus was simple: maximize Bitcoin per share. That is certainly still the goal, but it is now being balanced with something more scalable, which is building a credit product that the market trusts in all conditions. You can see this in the actions they have taken. They have built USD cash reserves, added Digital Credit onto the balance sheet itself, and continued to acquire Bitcoin, including through common equity issuance. Each of these decisions strengthens coverage, reduces perceived risk, and improves the overall credit profile. That behavior is important, especially in drawdowns. Over the last six months, as Bitcoin has experienced volatility, these companies have focused on strengthening the credit rather than increasing risk. If the market internalizes that this credit becomes more durable as Bitcoin moves around, then the risk profile changes. The product remains attractive even in weaker markets. That is where the feedback loop begins. Stronger credit profile leads to greater trust. Greater trust pulls in more fixed income capital. That capital flows into Digital Credit. That capital then gets deployed into Bitcoin. That creates a structural bid for Bitcoin. As Bitcoin rises, balance sheets strengthen further. Coverage improves. The credit becomes even more attractive. More capital flows in. The feedback loop continues. At the same time, higher Bitcoin prices increase the attractiveness of Amplified Bitcoin exposure. That expands mNAV premiums and improves the ability for these companies to raise capital efficiently, which ultimately feeds back into more Bitcoin acquisitions. So you end up with two reinforcing loops, one through credit and one through equity, both pointing in the same direction. If this dynamic continues, then Digital Credit could start to tap into the global fixed income market in a meaningful way. Even small reallocations from that market into Digital Credit could have a massive impact. This is why it feels like we may be approaching an inflection point for global Bitcoin adoption. It could happen quickly if the market fully understands the model, or it could take time as Digital Credit builds a track record and proves itself through market volatility. Either way, this is a very important moment in how serious capital begins to flow into Bitcoin.

The Ponzi framing misses the mechanism. STRC dividends are funded by ATM equity issuance at mNAV > 1. As long as BTC appreciates and MSTR trades at a premium to its BTC holdings, Strategy issues shares at a premium and uses proceeds to service STRC. The “interest” is BTC appreciation monetized through the equity layer. not new principal covering old interest. A Ponzi would have no underlying asset but strategy has over 700K bitcoin, the only argument is that you believe bitcoin wont appreciate 11.5% like kevin says but that argument with bitcoins institutional adoption increasing every day looks less and less correct

@Michael_Liu93 而且最核心的是 STRC 是 preferred equity, not bond!

我认为MSTR一定会爆雷，也许不是这轮周期，也许不是下轮或是下下轮，但最终一定会爆雷，因为这是所有资金盘的逻辑必然。 关键问题：“屯BTC这样的无息资产如何支付每年11.5%的利息？” 软件业务没利润、btc不能卖（mstr卖的那一刻就是崩盘的开始）、能做的只有拉更多新的本金去支付前面的利息，拉不动的那一刻就是崩盘的开始。 现在50亿的STRC每年需要支付5.75亿美金的“股息”，未来这个数字会越来越大，btc过去最大的利好，一定会在未来某个时间成为btc最大的利空。

“Even if Bitcoin goes down to $35,000… Our interest covered would still be around 10 years…” @ColeMacro

🚀🚀🚀🚀

If you're in Private Credit, pivot to Digital Credit #STRC #SATA #CHAD

Unreal

@TheOtherParker_ @martypartymusic #CHAD move

@martypartymusic If you're in Private Credit, pivot to Digital Credit #STRC #SATA #CHAD

IMO: Private credit will break. This affects 401k’s. There will be a bail out. Blackstone, Cliffwater, Blackrock, BlueOwl, Apollo, the Carlyle Group they all under water and their stock is collapsing. ☝️🖨️🖨️🖨️

The financial system didn't fail because of structured products. It failed because nobody could see inside them. CDOs weren't evil. Opacity was. Tranching wasn't the problem. Hidden correlation was. Leverage wasn't the issue. Unauditable counterparty chains were. Now imagine rebuilding the same financial engineering on a foundation where the collateral is publicly verifiable in real time, the rules are enforced by code that anyone can read, and no committee meets behind closed doors to decide who gets paid first. That's what Bitcoin credit makes possible. Not the rejection of financial engineering. The redemption of it.

@grahamfergs Check out TrancheFi.io 8% stable senior tranche 20-26% junior tranche yield

Who are the most innovative people in RWAs?

@TrancheDefi Agree, the potential to build on top of Digital Credit is massive. 🤝

@AdamBLiv Well said!

I have some thoughts on the Metaplanet raise + shareholder response: These retail Metaplanet holders scream for capital raises only at sky-high premiums (3x+ mNAV during BTC euphoria phases), yet when Bitcoin corrects 45-50% - precisely the window where the company must opportunistically issue equity to keep stacking sats.... ...they pivot to pearl-clutching over "terrible terms." The March 16 private placement ($255M at a mere 2% premium + warrants for another ~$276M, total ~$531M war chest) triggered the outrage precisely because it arrived amid the drawdown. They refuse to wait through the cycle for the next premium-rich window, but demand the company magically time raises to avoid any dilution pain. That's wanting to eat the flywheel's upside without swallowing a single rotation of its downside. This is the same cognitive trap that plagued Strategy critics for years. Saylor was relentlessly roasted for "buying every top" and refusing to chase dips aggressively, because the old toolkit (straight equity, convertibles) forced raises when markets were open, not when BTC was cheapest. The result was consistent accumulation, but never the hyper-aggressive dip-scooping people claimed they wanted. Only literally two weeks ago, with the scaling of STRC did Strategy finally gain the structural flexibility to hammer dips harder. That tool didn't exist before and the flywheel was always volatile by design. Capital raising terms will suck during corrections (more shares issued per BTC bought) and they will become god-tier during rallies (leverage on the balance sheet explodes the mNAV premium, compounding BTC-per-share at rates no static holder can match). Exactly the same dynamic is playing out at Metaplanet. Issuing equity at a 1% premium to buy Bitcoin right now is logically optimal even if the terms feel "sucky" on paper, because Bitcoin at deep correction prices is still profoundly undervalued on a multi-year view, and sitting on cash earns you nothing while the window closes. The alternative (waiting forever for 3x premiums) means you raise less overall, buy fewer sats during the very periods when forward returns are highest, and let the balance sheet atrophy. I commend ACTION during this dip over paralysis. Conversely, when BTC rips and the stock premium expands, the same leverage that felt punitive on the way down becomes rocket fuel. Each new dollar of capital buys BTC that then drives mNAV higher, attracting more capital at better terms, ad infinitum. That's the entire flywheel. It is definitionally volatile. Premiums compress in corrections (terms suck) and expand in expansions (terms print). Shareholders who demand raises exclusively at peak premiums while refusing to endure the -45% phases are essentially asking management to violate the cycle itself - to raise only in the green and hide during the red. That's not how compounding BTC exposure works. It's how you stay small and irrelevant. The math is merciless. If you only ever raise at "excellent terms," you never scale through full cycles. If you complain every time terms are merely "logical" (1% premium equity for BTC when the alternative is zero BTC), you reveal you never understood the strategy in the first place. Saylor's pre-STRC era proved the point. Metaplanet's current raise is proving it again. The patient capital that accepts the full volatility arc wins on net BTC-per-share growth. The rest are shareholders who never wanted to be flywheel participants - they were tourists who mistook a leveraged BTC accumulator for a stablecoin ETF. End of story. This is just proof that a lot of people cannot handle the VOLATILITY SUPER DRAGON that is Metaplanet. If you can't comfortably hold it for at least a year, you probably can't hold it for 4 years. Either diamond-hand the rotations or step off the ride. The engine doesn't negotiate with feelings.

Every bond gets cheaper when it sells off. The yield rises because the price dropped. But the coupon stays the same. STRC works differently. When it trades below par, the actual dividend payment increases. Not just the yield from a lower price. The dollar amount you receive every month goes up. The issuer is mechanically pulling the price back toward par by making the instrument more attractive. Most credit instruments depend on sentiment to recover. Price drops, coupon stays flat, recovery requires confidence to return on its own. STRC's recovery is structural. Price drops, coupon rises, yield becomes compelling, buyers step in, price reverts to par. The mechanism doesn't depend on market conditions or investor sentiment. The math on the instrument forces par reversion.

@ZynxBTC @anon_pleb Its a great listen.

@anon_pleb They have a whole podcast?

I'm increasingly bullish on $ASST. I wouldn't be surprised if it's the best performing Bitcoin Treasury over the next 12 months. The simple capital structure of Equity + 1 Pref ($SATA) is the most attractive in the space. Every move made post Semler acquisition has been great and the company is in a much stronger position compared to after the PIPE unlock. I've come to value the purer forms of leveraged Bitcoin exposure and Strive are currently the purest. American capital markets + Strategy slip stream is also underrated. No one's catching Saylor but they don't even need to. The second largest issuer of a Bitcoin backed fixed income product in America is still a trillion dollar company, eventually.

Bitcoin is the crude oil. Strategy is the refinery. STRC is the gasoline. Gasoline is useful on its own. But nobody stopped at gasoline. They built petrochemicals. Plastics. Pharmaceuticals. An entire industrial stack on top of a single refined commodity. STRC is a 11.5% yielding preferred stock anchored at par with a self-correcting dividend. Make that programmable and you can leverage it, tranche it, strip the coupons, carve fixed rate products out of variable rate income, use the fixed rate piece as collateral to borrow against. Every one of these products exists in traditional fixed income markets. None of them exist yet for Bitcoin credit. The refinery is built. The gasoline is flowing. The petrochemical layer is next.