Treehouse is building a "observatory" for financial infrastructure in the chaos of DeFi. The $6 trillion fixed income market of TradFi is almost blank in DeFi, with the core issue being the lack of standardized benchmark interest rates. Treehouse's solution includes two innovative components: DOR generates anti-manipulation benchmark interest rates through game theory mechanisms, while tAsset enhances market efficiency through leveraged arbitrage strategies.


The design of DOR draws lessons from TradFi. Unlike the bank quoting model of LIBOR, it requires five categories of participants to engage in interest rate prediction through staking assets, with those achieving high accuracy receiving $TREE rewards, while continuous errors face exponential penalties. The first application is the Ethereum Staking Rate Curve (ESR), which can present interest rate expectations for multiple terms such as 1/7/30 days, providing a pricing benchmark for DeFi derivatives. Based on ESR, products such as interest rate swaps can be constructed, transforming the volatility of staking yields into fixed income.
tAsset adopts a cyclical staking lending strategy: users stake ETH through Lido to obtain wstETH, then re-collateralize it to borrow ETH from Aave and repeat the operation to capture the interest rate spread between lending and staking. Historical data shows that its annualized yield is 0.6% higher than ordinary staking. More importantly, tAsset holders can delegate their assets to the DOR expert team, which enhances system security while earning additional rewards. As arbitrage capital flows in, tAsset yields will tend to zero — this is precisely a sign of improved market efficiency.
The deep value of this project lies in reconstructing the financial language of DeFi. When DOR becomes a recognized benchmark, institutional investors can use quantitative tools to assess risks and develop structured products. Just as LIBOR once drove the traditional fixed income market to grow fivefold to 60 trillion, Treehouse could become a key piece for DeFi to reach "institutional level."

{future}(TREEUSDT)
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DEFI-0.11%
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