The Treehouse protocol is a decentralized fixed income protocol focused on providing stable and predictable yield models for crypto assets, similar to the bond market in traditional finance. Its core mechanism is to achieve user yields through tAssets (Treehouse assets). Users deposit ETH or liquid staking tokens (such as stETH) into the protocol and receive tokens like tETH in return. These tAssets utilize specific interest rate arbitrage strategies to provide users with higher yields than the underlying staking while enhancing on-chain interest rate efficiency.
Additionally, the Treehouse protocol ensures market interest rates are transparent and accurate through a Decentralized Offered Rate (DOR), supporting community participation and governance. This protocol is not only applicable to traditional staking assets but also introduces innovative yield generation mechanisms, bringing fixed income products similar to traditional financial markets into the crypto space.
TREE is the native governance token of the protocol, used for participation in governance, staking, and earning rewards, among other functions.