#Treehouse: Building a Bridge Between Traditional Finance and DeFi
Traditional finance is known for its stability, but it has the drawbacks of centralization; DeFi is full of innovative energy but is fragmented. The emergence of the Treehouse protocol is like a magical key, building a bridge that connects both, allowing traditional finance and DeFi to achieve seamless integration.
Treehouse accomplishes this feat through two core mechanisms: tAssets and DOR. Traditional benchmarks like SOFR carry manipulation risks, while DOR’s decentralized consensus mechanism dissipates these risks. tAssets, akin to LST 2.0, bring traditional fixed-income concepts on-chain. Users can deposit ETH to receive tETH, thereby enjoying enhanced stable returns through arbitrage. This model bridges centralized finance (CeFi) and DeFi, allowing users to not only utilize the DOR audit index but also trade ETH forward contracts in the OTC market. Referencers use DOR to construct interest rate swaps, attracting institutional capital and further promoting the flow of funds between traditional finance and DeFi.
The $TREE token is the solid foundation of this bridge. It is used for paying query fees and staking governance, ensuring the balance and stability of the entire ecosystem. The project roadmap of Treehouse is very clear, planning to expand from Ethereum to Solana and integrate more protocols, enabling traditional finance players to easily go on-chain and integrate into the world of DeFi.
Why do we need this bridge so much? Because for DeFi to achieve mainstream adoption, it must leverage the experience of traditional finance. Treehouse is not simply replicating traditional financial models but is innovating boldly, possessing advantages such as censorship resistance, transparency, and efficiency. For those from traditional finance, it may be worth starting with tETH; for seasoned DeFi players, DOR will bring new inspiration. It can be said that the bridge built by Treehouse is reshaping the future of finance, allowing traditional finance and DeFi to work together toward a brighter tomorrow.
