Analysis of the Technical Innovations of the Treehouse Protocol 🌳
The Treehouse Protocol is unique in the on-chain fixed income sector, with its core focus on the integration and optimization of interest rate markets. Taking tETH as an example, it aggregates the fragmented ETH interest rate market of Ethereum, allowing holders to earn excess PoS rewards through interest rate arbitrage, and also enabling the use of tETH in various DeFi activities. Technically, it balances yield stability with asset liquidity, addressing the pain points of traditional DeFi.
Its Decentralized Quoted Interest Rate (DOR) consensus mechanism makes interest rate determination more transparent, efficient, and decentralized through algorithms and smart contracts, reducing the uncertainty of human intervention compared to traditional finance dominated by a few institutions, thus enhancing market fairness and credibility.
