FAQ

Frequently Asked Questions about Tren Finance

Does Tren Finance have redemptions?

No, Tren Finance does not have redemptions. To see why, please read here

What are the use cases and strategies that I can employ with Tren Finance?

Tren Finance unlocks numerous ways to (re)collateralize idle liquidity. Please read our Use Cases section and detailed explanations of the different Strategies that you can employ.

Does the protocol use isolated, or cross-collateral pools?

The protocol uses isolated modules architecture. Read more

How does XY maintain its peg?

Tren Finance uses soft peg, and hard peg mechanisms for when XY is above and below its target peg. If XY is below peg for a sustained period of time, a XY buyback and burn program is deployed. Read more

How does the protocol handle liquidations?

The protocol primarily relies on the Insurance Pool mechanism for liquidations. Read more

Does the protocol have revenue sharing mechanisms? How does TREN accrue value?

90% of protocol revenue goes towards TREN buybacks. Read more

How does protocol revenue distribution work?

Protocol revenue allocation is decided by the TrenDAO (veTREN holders). The TrenDAO vote on different Gauges to decide protocol revenue allocation and distribution. Read more

Does Tren Finance have a token?

Yes, there are two tokens on Tren Finance. One is TREN, a fixed-supply value accrual token architected on the principles of the ve(3,3) model. The other token is XY, a synthetic dollar debt token backed by overcollateralized loans.