DOR Mechanism: Installing a 'Smart Stabilizer' for DeFi Interest Rates

In traditional fixed income markets, interest rates are often manually adjusted by institutions, leading to delays and rigidity; while early DeFi's high yields were largely built on subsidies, making the bubbles fragile. It wasn't until @Treehouse Official introduced the DOR mechanism that DeFi interest rates gained a 'Market-based Stabilizer', which is both real and sustainable.

The core of the DOR mechanism of #Treehouse is 'real-time response to supply and demand'. When a large number of users stake assets into the liquidity pool, indicating that market funds are abundant, DOR will automatically lower the interest rates to avoid the vicious cycle of 'high interest attracting funds - difficult to sustain subsidies'; when users redeem assets leading to tightened liquidity, DOR will timely raise the interest rates to attract new funds. This logic of 'as the water rises, the boat lowers; as the water falls, the boat rises' keeps the returns of the Treehouse protocol fluctuating within a reasonable range, and also provides a more robust value support for $TREE as an ecological token—after all, users are more willing to stay for 'reliable returns' in the long term.

For institutional users, the appeal of the DOR mechanism is particularly evident. When institutions allocate assets, the biggest fear is 'volatile returns', and the interest rate stability achieved through DOR by the Treehouse protocol precisely matches the risk preferences of institutions. Recent data disclosed by @Treehouse Official shows that the institutional users connected now account for 30% of the total funds, which is underpinned by the trust established by the DOR mechanism.

Now, #Treehouse is continuously expanding its reach with the DOR mechanism: from cryptocurrency assets to cross-border payment vouchers, more and more targets want to connect to this 'intelligent interest rate adjustment system'. As the governance token, $TREE determines the review standards for the onboarding of new targets, and its ecological voice is steadily increasing. While DeFi is searching for 'institutional entry tickets', @Treehouse Official has already opened the door with the DOR mechanism.

#Treehouse has made interest rates market-based, and it is no longer just a concept.