😮 In the traditional financial system, interest rates and other 'reference rates' serve as the underlying benchmarks for pricing models, financial products, and risk control systems. Banks and institutions rely on them for loan pricing and other operations. However, DeFi has exploded over the past few years, with numerous on-chain lending protocols, staking products, and derivatives protocols, most of which do not have a truly unified, public, and verifiable 'interest rate anchor.' The annualized rate data sources and calculation logic set by the protocols themselves are not transparent, making it hard to discuss fairness.
🌟 At this time, Treehouse has emerged. It is not here to create tokens for profit but genuinely wants to solve the significant issue of 'the lack of standard interest rates in on-chain financial markets.' Treehouse has launched a complete set of DOR (Decentralized Offered Rates) mechanisms with a clear goal: to establish a truly trustworthy and public benchmark interest rate system on-chain.
Its first product, TESR (Treehouse Ethereum Staking Rate), is designed as a reference rate for ETH staking yields, which can be understood as the 'on-chain SOFR' version, reflecting the real yield levels of the ETH staking market. Moreover, it relies on multiple roles to jointly participate in forming a 'consensus-driven quoting mechanism.' Operators submit data, Panelists review it, and Delegators delegate voting rights. The entire process is transparent on-chain, with clear rules, allowing for accurate quotes while also earning rewards of $TREE tokens.
🧐 What problem does Treehouse solve? It is essentially building the 'foundation of the pricing system' for DeFi. With TESR, the interest rate models of various products on DeFi can be established more precisely, such as fixed-rate derivatives pricing, collateral interest rate models for lending protocols, on-chain risk hedging strategies, liquidity pool interest rate curve design, and liquidation model optimization, all having reasonable anchor points.
Treehouse has put in considerable effort behind the scenes. The contracts have been audited by multiple major firms, providing multi-layered protective mechanisms. The core interest rate logic and data models are transparent and open, and the $$TREE tokens have practical uses for incentivizing and participating in interest rate decision-making.
