In the context of traditional financial markets owning a vast fixed income ecosystem with tools like bonds, standard interest rates, and derivative products, the cryptocurrency market still lacks an equivalent infrastructure platform. Treehouse was created to fill this gap, bringing fixed income products into the DeFi space transparently, efficiently, and securely.

What is Treehouse?

Treehouse is an infrastructure protocol aimed at developing fixed income financial products in the cryptocurrency ecosystem. By combining liquid staking token technology (tAsset) and decentralized interest rate reference systems (DOR), Treehouse creates an environment where both individual and institutional investors can access stable interest rate products transparently and securely.

The foundational currency of the ecosystem is TREE coin, serving as a payment tool, economic reward, and governance vehicle.

Context of inception and Objectives

After shocking events like the collapse of LUNA or FTX, trust in the cryptocurrency market has been shaken, especially in the institutional investor segment. Treehouse emerges as a solution to bring the stability and transparency of traditional finance into Blockchain. Built on risk analysis experience since 2020, the Treehouse development team aims to drive widespread adoption of cryptocurrency in the global financial community.

Current Issues in the Crypto Fixed Income Market

In the current DeFi ecosystem, protocols like Aave, Compound, or Spark offer different interest rates for the same asset, leading to fragmentation and inefficiency. Without a standard interest rate, products like crypto bonds or interest rate derivatives are very difficult to design and implement.

This forces investors to build high-risk strategies themselves with low measurability. Treehouse aims to change that by creating a unique interest rate ecosystem where reliable data and strategies are automated.

tAsset and tETH: How Treehouse Restructures Fixed Income

tAsset is a token that represents a liquid staking asset, operated by dynamic yield strategies within the Blockchain ecosystem. tETH, the first product, automatically moves between high-yield, low-cost staking pools to optimize profits for users.

The superior advantages of tETH:

  • Continuous liquidity: Investors can use tETH as collateral or trade in DeFi.

  • Automating strategies: No manual management required, everything is operated by smart contracts.

  • Benefit from interest rate spreads: A mechanism similar to the organization's arbitrage strategy.

In the long run, Treehouse plans to develop similar tAssets for various other asset types such as BTC, stablecoins...

DOR – The First Decentralized Interest Rate Reference Mechanism

DOR (Decentralized Offered Rates) is a system that generates reliable reference interest rates for the cryptocurrency market, similar to LIBOR or SOFR in traditional finance.

How it works:

  • Panelists and delegates participate in predicting interest rates within a defined timeframe.

  • The accuracy of predictions is rewarded with TREE coins, and deviations are penalized by losing staking assets.

  • The random sampling mechanism and outlier removal help ensure integrity.

DOR outcomes can be used to value debt contracts, interest rate derivatives, and crypto bond tokens – laying the foundation for the development of the cryptocurrency interest rate curve.

TREE Coin: Incentives and Governance Mechanism

TREE is the native token of the Treehouse ecosystem, serving the role of:

  • Payment of DOR data access fees: Protocols using DOR must pay fees in TREE, generating revenue for the network.

  • Rewards for panelists and delegates: Correct predictions receive rewards, incorrect ones lose staked assets.

  • DAO governance: The community holding TREE can vote on major decisions such as launching new tAssets, changing protocol parameters, funding subsidiary projects...

Applications for Organizations and Individuals

For institutional investors:

  • Can easily build a fixed income investment portfolio.

  • Easily integrate DOR into risk pricing models.

  • Reduce compliance costs through transparent on-chain data.

For individual investors:

  • Simply hold tETH to participate in professional financial strategies.

  • No technical expertise needed, everything is managed by smart contracts.

  • Can plan finances more clearly thanks to DOR reference products.

Competitive Advantages and Development Roadmap

Compared to competitors like Pendle Finance, Exactly Protocol, or Notional Finance, Treehouse has advantages due to:

  • Integrate both the interest rate reference system (DOR) and tokenized flexible yields (tAsset).

  • Create strong network effects: The more protocols using DOR → the higher the switching costs → reinforcing the central position.

  • The founding team has a background in traditional finance, ensuring the protocol meets organizational standards.

Upcoming roadmap:

  • Expand tAssets for different blockchains.

  • DOR becomes a multi-chain interest rate reference standard.

  • Integrate with traditional financial institutions to create compliant products.

Conclusion

Treehouse is a pioneering protocol that introduces a fixed interest rate structure to the cryptocurrency world. With a comprehensive approach – from interest rate reference infrastructure to flexible interest rate investment products – Treehouse is creating an environment where investors can confidently seek stable, transparent, and sustainable income in the DeFi space. If successful, Treehouse will serve as a cornerstone for the professionalization of the decentralized financial market in the future.