Why is the Reference Rate important?
In the financial world, the Reference Rate is the core of contracts, determining borrowing costs, swap prices, and even investment returns. Traditional markets have recognized benchmarks such as #LIBOR and the U.S. Treasury yield curve. But what about #DeFi ?
The DOR (Decentralized Offered Rates) proposed by Treehouse is precisely a decentralized interest rate benchmark. Through the participation of Operators, Panelists, and Delegators, DOR can generate trustworthy interest rate curves, such as TESR (Treehouse Ethereum Staking Rate), serving as the 'risk-free curve' for Ethereum.
With a benchmark interest rate, DeFi can give birth to more mature derivative products, such as interest rate swaps and fixed income agreements. Treehouse is the promoter of this decentralized 'interest rate standardization'.
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