Institutional-Level DeFi is Here: How Treehouse Uses $TREE to Open Traditional Financial Doors?

As traditional financial institutions linger at the door of DeFi, the #Treehouse protocol of @Treehouse Official is building a cross-border bridge with compliant fixed income solutions. With the robust returns of tAssets and the interest rate benchmark of DOR, #Treehouse is attracting institutional capital, while $TREE is a key driver of this "institutionalization" process.

The appeal of #Treehouse to institutions lies in its "predictability": the returns of tETH are automatically optimized by algorithms, avoiding the human risks of manual operations; the consensus interest rate mechanism of DOR allows institutions to easily design interest rate swaps, forward contracts, and other products, just like using LIBOR. Tests from a traditional asset management company show that the annualized volatility of the ETH fixed income strategy configured through #Treehouse is reduced by 60% compared to directly holding ETH, which is exactly what institutions value most: "controllable risk."

It provides customized access for institutions: staking $TREE unlocks the institutional API, achieving seamless integration of tAssets with traditional systems; through governance, institutions can participate in the application for DOR's institutional validation nodes, directly influencing interest rate generation; and the repurchase and destruction mechanism of $TREE (with part of the protocol's income used for repurchase) also allows institutions to have a more stable expectation of token value.

@Treehouse Official is advancing compliance layouts: it has collaborated with multiple on-chain auditing agencies to ensure the transparency of tAssets; the interest rate generation process of DOR is evidenced on-chain to meet regulatory traceability requirements. With the launch of empowering institutional-level products (such as tAsset index funds), traditional funds such as banks and pension funds will be able to enter DeFi with low barriers. It can be said that #Treehouse has opened a door for institutions and brought the possibility of scalable growth to DeFi.