TREE Series (12): DOR Decentralized Consensus Mechanism

Decentralized Offered Rate (DOR) is an innovative creation of the Treehouse protocol. Its core lies in a unique consensus mechanism that allows interest rate setting to no longer depend on centralized institutions, but rather on a community-driven transparent process. Simply put, DOR acts like a distributed brain, operated by operators, panel members, and delegates, ensuring that each interest rate curve is based on real market data and forecasts.

How does the mechanism work? Panel members regularly submit interest rate forecasts, and this data is aggregated through a consensus algorithm to form forward curves. If the predictions are accurate, they receive TREE token rewards; conversely, the staked tAssets will be forfeited. This crypto-economic design incentivizes everyone to participate honestly, avoiding manipulation risks. Operators are responsible for maintaining data flow, while delegates support panel members through staking and share the profits.

Compared to traditional centralized models like LIBOR, DOR is more resistant to censorship and more transparent. All submissions are visible on-chain, and referees can use it to build interest rate swaps or fixed lending products. TREE tokens serve as the lubricant here: query fees are paid in TREE, and governance relies on votes from TREE holders. In the future, DOR will expand to multiple chains, covering more assets.

This mechanism not only addresses the pain points of DeFi but also brings new primitives to end users. Imagine a truly decentralized interest rate system that can reshape the entire on-chain financial ecosystem. If you're interested in consensus, DOR is definitely worth delving into.

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