Treehouse: the "Stabilizing Force" of decentralized interest rates, and also builds a vibrant pulse for the DeFi ecosystem!
In the complex "jungle" of DeFi, fixed income products have always been a shortcoming, and traditional financial interest rate benchmarks have been criticized for being too centralized.
Treehouse is like a super reliable cornerstone. With its original Decentralized Offered Rates (DOR) mechanism, it has built a solid foundation for the interest rate system of decentralized finance, and injected new energy of transparency and efficiency into the Web3 ecosystem. This architecture not only renovates the way on-chain interest rates are generated, but also creates a lively fixed income ecosystem through community collaboration. The core highlight of Treehouse is DOR - a verifiable interest rate benchmark created by a consensus mechanism.
DOR relies entirely on objective data, such as transaction volume and index formulas, and the results do not contain any subjective meddling. Compared with the traditional financial IBOR, the difference is too obvious. Panelists (such as market makers, oracles, and exchanges) submit interest rate predictions using their own models, and Delegators delegate $TREE tokens through Pre-Deposit Vaults to support the best-performing Panelists, and the amount of revenue depends entirely on the accuracy of the predictions. This design also incorporates Ethereum PoS rewards and interest rate arbitrage into tETH and other liquid staking tokens, which can earn excess returns without delaying the flexible operation of DeFi applications, which is simply wonderful.
The technical "pillar" is its multi-layer architecture. Treehouse has created an Ethereum Staking Rate (ESR) as a risk-free benchmark, plus Attestation Rewards, MEV Bribes and other indicators, building a clear interest rate curve, and even derivatives such as Staking Rate Swaps can be developed on it.
There is also a Protocol-Owned Peg Protection (PPP) mechanism, which relies on the Treehouse Insurance Fund to intervene when the tETH price deviates to protect the interests of holders, so that there will be no more Terra-Luna-like unpegging issues. DOR's multi-tenor design can also adapt to the needs of short-term and long-term financial products. Now the ecosystem TVL is close to $100 million, it seems that the market really recognizes it.
However, this cornerstone is not perfect. The initial whitelist restriction may make decentralization less meaningful, and the accuracy of relying on external data sources must also be closely monitored. If the governance mechanism can be further optimized and cross-chain support can be expanded in the future, Treehouse may be able to consolidate its position even more.
This "cornerstone" is laying a solid foundation for the DeFi interest rate system. Every "pulse" it beats is releasing the potential of decentralized finance. It is worth watching it grow! #Treehouse $TREE
