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Tranche Protocol

Structured Credit for Real World Assets on Mantle

Live Demo: https://mantle-hackathon.vercel.app


Overview

Tranche Protocol brings structured credit products to decentralized finance by splitting Real World Asset (RWA) yields into two distinct risk-return profiles. Traditional finance has used this model for decades through CDOs and CLOs, but DeFi has lacked the infrastructure to offer similar products on-chain.

Our protocol takes a single RWA yield stream and transforms it into two ERC-20 tokens: Senior Tranches offer stable, protected yields with priority in the capital waterfall, appealing to conservative investors like DAOs and treasuries seeking predictable returns. Junior Tranches absorb the first-loss risk in exchange for leveraged, amplified yields, targeting risk-seeking yield farmers and speculators.

The architecture is built on battle-tested Covenant Protocol smart contracts, deployed on Mantle's low-cost L2 infrastructure. Users deposit stablecoins into an RWA vault, mint tranche tokens representing their risk tier, and can further use these tokens as collateral to borrow additional capital. This capital efficiency enables investors to simultaneously earn RWA yields while deploying their capital elsewhere in DeFi.

Institutional compliance is native to the design through our KYC infrastructure, allowing regulated entities to participate while maintaining on-chain composability. The protocol is permissionless yet compliant, making it suitable for both retail DeFi users and institutional capital seeking exposure to tokenized real-world assets with customized risk profiles.


How It Works

  1. Deposit stablecoins into RWA Vault → receive vault shares
  2. Mint Senior or Junior tranche tokens from vault shares
  3. Earn yields: Senior gets fixed 5% APY (protected), Junior gets 15-25% (leveraged)
  4. Borrow against tranche tokens as collateral
  5. Swap between tranches or redeem back to stablecoins

Deployed Contracts (Mantle Sepolia)

Contract Address Explorer
Settlement Token (msUSD) 0xFf28165F26eB69432E2CB17F3E77b6267f106B91 View
KYC Registry 0x01E25650e5a2aD7430E9050937a95F2a1bF74239 View
RWA Vault 0x62B1D966B890a832aA621BC4246044DC4B48A908 View
Oracle Adapter 0xB144d275568Db13C8599a859928604e55c4b73Ca View
Tranche Core 0x5cB718802134eAFfe904C6D7B4E065568ceaAB1F View
Tranche LEX 0x06408914C115FA749F4aDC62858CC98bd8f95580 View
Tranche Curator 0x45151fc051e47E9e64F7E83d63Ad170C4c51f3c5 View
Senior Token (msUSD-S) 0x90026959DA69690FCd5F028Da1f70b12334e0014 View
Junior Token (msUSD-J) 0x62b2C74cb1832feE077c75DAd1DeFa2118b4b924 View
Stable Borrow Vault 0x2149D2E2609742C1C9Ffc841F669eFE01a3DFAf6 View
HackUSD 0xb25742aA9b7f8Dc13d6Cf746c753BaAc045b7abE View

Market ID: 0x739e42eab9605d150e420da33aef904f6a05b160


Build & Deploy

Prerequisites

Smart Contracts

# Install dependencies
forge install

# Build
forge build

# Test
forge test

# Deploy to Mantle Sepolia
export DEPLOYER_PRIVATE_KEY=0x<your-private-key>
forge script script/DeployMantleSepolia.s.sol:DeployMantleSepolia \
  --rpc-url https://rpc.sepolia.mantle.xyz \
  --broadcast

Frontend

cd frontend
npm install
npm run dev     # Development at localhost:3001
npm run build   # Production build

Documentation

Document Description
Architecture System design and flows
Pitch Problem, solution, business model, roadmap
Compliance Regulatory disclosure
Team Team information

Tech Stack

  • Contracts: Solidity 0.8.30, Foundry, OpenZeppelin
  • Frontend: React, Vite, Ethers.js v6
  • Network: Mantle Sepolia (Chain ID: 5003)

License

Built for Mantle Hackathon 2026. Based on Covenant Protocol (BUSL License).

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