Tranche Factory

1. Overview

The Tranche Factory creates new Tranches on existing wrapped position addresses. Deployment of new factories is done using CREATE2. This allows for cheap on-chain verification that a factory was deployed by this contract. It also allows for cheap tranche address derivation.


  • Tranche: The contract which locks wrapped Yearn shares and mints yield and principal tokens.
  • Wrapped position: Wrapped shares of a yearn vault.

2. Contract Details

Key Functionality:

deployTranche: Deploys a new tranche given an expiration time and the address of the wrapped position contract.

3. Gotchas (Potential source of user error)

This contract uses CREATE2 to deploy the tranche, therefore redeployment of a tranche with the same expiration and wrapped position address will fail.