The DOR Mechanism: Bringing Transparency to DeFi Rates
In traditional finance, we rely on benchmarks like LIBOR or SOFR. In DeFi, such a standardized "risk-free rate" has been absent—until now. Treehouse's Decentralized Offered Rates (DOR) is a game-changing consensus mechanism that creates a transparent, on-chain benchmark for interest rates. The DOR is determined by a network of validators, known as Panelists, who stake $TREE and submit rate forecasts. This system, fortified by game theory and slashing mechanics, ensures data accuracy and decentralization. The result? A reliable, auditable interest rate benchmark that can be used by protocols, institutions, and builders to create a new generation of fixed-term loans and derivative products.