In today's rapidly developing decentralized finance (DeFi) space, the demand from users and institutions for more predictable and safer yields is increasing.
However, most mainstream DeFi lending protocols still rely on over-collateralization models, lacking a true 'credit creation' mechanism and stable benchmark interest rate support.
The Treehouse protocol was born out of this context as a groundbreaking project launched by Treehouse Labs, focusing on building on-chain fixed-income infrastructure to fill the gaps in credit systems, interest rate transparency, and stable yield products in DeFi.
1. Treehouse's mission is:
Lowering the threshold, popularizing fixed income: Simplifying the DeFi user experience through fixed income products.
Unified interest rate reference standard: Establish a decentralized interest rate mechanism similar to LIBOR to solve the problem of fragmented interest rates.
Improve yield predictability and transparency: Driven by on-chain data, build robust and trustworthy yield models.
2. Treehouse Core Product Architecture
The Treehouse protocol achieves its goals through two key components: tAssets and DOR (Decentralized Offered Rates).
1. tAssets: Release asset liquidity and yield potential.
Definition: tAssets are liquid staking tokens (such as tETH) launched by Treehouse, which can be obtained by depositing ETH or other LSTs.
Sources of income: Combining underlying staking yields, interest rate arbitrage (Market Efficiency Yield), and incentive points (such as Nuts).
Core advantage: Users can retain asset liquidity while automatically participating in efficient arbitrage strategies to optimize returns.
2. DOR: Decentralized Interest Rate Engine of the DeFi World
Functional positioning: Similar to LIBOR or SOFR in traditional finance, DOR provides benchmark interest rates for the crypto market (such as TESR).
Mechanism design: Participation through roles such as panel members and delegates, using TREE or tAssets staking for interest rate forecasting, generating consensus on interest rate data.
Transparency and resistance to manipulation: Reliant on on-chain verifiable data generation, avoiding control by centralized institutions.
Application scenarios: Fixed-rate loans, on-chain government bond-like products, interest rate swaps, and various DeFi fixed-income tools.
3. TREE Token Ecosystem: Balancing Incentives and Governance
TREE is the core governance and utility token of the protocol, with a total supply of 1 billion.
Use cases: Used for paying DOR inquiry fees, participating in staking, obtaining prediction rewards, protocol governance, etc.
Incentive mechanism: Promote community participation through activities like 'GoNuts' to drive decentralized consensus.
Token release plan: Released over four years to ensure alignment of interests between long-term participants and core builders.
4. Treehouse introduces a true credit mechanism to DeFi.
Although traditional credit systems rely on borrowers' credit ratings and identity verification, current DeFi lending is still primarily based on over-collateralization, limiting the space for credit creation. Treehouse lays the foundation for building on-chain credit through DOR and tAssets, which is expected to support non-collateralized, traceable on-chain credit lending models in the future.
@Treehouse Official The protocol not only fills the market gap for DeFi fixed income products but also provides a robust, transparent, and scalable financial infrastructure.
As users and institutions place greater importance on the on-chain 'actual yield' narrative, Treehouse is expected to become a key bridge connecting traditional finance with DeFi, injecting new momentum for the next phase of DeFi growth.
