Day 1, and Treehouse is already catching serious attention on Binance Square. The problem? Most posts about it are either overly complex or just plain dull. So, let’s strip it down and get to the core of what Treehouse Finance actually is.
What is Treehouse Finance?
Treehouse is a DeFi protocol building a “fixed-income layer” for digital assets. In simple terms, it’s tackling the issue of inconsistent and unpredictable interest rates in DeFi by introducing standardized products and benchmark rates.
How does it work?
1. You deposit your ETH into the Treehouse protocol.
2. In return, you receive a “tETH” token – essentially a receipt showing your ETH is in the system. These are called Treehouse Assets, or tAssets.
3. Behind the scenes, Treehouse’s smart contracts spread your ETH across different DeFi platforms (lending, staking, etc.) to secure the best yields.
4. Your tETH grows in value automatically as those yields come in. When you redeem it, you get back more ETH than you started with – without lifting a finger.
Simple enough, right? Tomorrow, we’ll dig deeper into the more advanced DeFi strategies Treehouse uses. See you in Day 2.
