In the past, DeFi was more like 'farming by looking at the sky' with floating yields. What Treehouse does is to bring 'predictable fixed income' from traditional markets to the chain, engineering products with unified interest rates and standardized components. Its positioning is very straightforward: a decentralized fixed income layer, with two key pillars being tAssets and DOR (Decentralized Offered Rates). The former turns yield rights into programmable assets, while the latter provides a verifiable on-chain benchmark interest rate, equivalent to a Web3 interest rate gauge. 😎
How to understand tAssets? You can think of it as packaging cash flows of a certain type of interest rate or yield into tokens, preserving the liquidity of the underlying assets while being usable in various DeFi scenarios. The first official tAsset is tETH, aimed at unifying fragmented yields of ETH on-chain while maintaining composability (for collateral, LP, hedging). The existence of tAssets provides a means for locking in interest rates/hedging rates/splitting cash flows, making these traditional fixed income actions actionable in DeFi.
What does DOR do? You can think of it as on-chain LIBOR: a community-driven, transparent, and verifiable interest rate curve for products like lending, notes, swaps, term structures, etc. The pricing, settlement, and margin management of many fixed income products rely on a benchmark line recognized by industry consensus. DOR places this line on-chain and in the public eye, reducing the friction of 'each singing their own tune' in interest rates.
From the perspective of development and risk control, the benefits of standardized components + measuring gauges are:
Products are reusable: notes, range accruals, callable notes, term loans, etc., can all be assembled around DOR/tAssets;
Risk can be aligned: different protocols referencing the same interest rate curve makes hedging and valuation clearer;
Settlement is verifiable: the calculation of interest rates and cash flows is on-chain and verifiable. The official documentation also provides a structural illustration based on tAssets and referenced by DOR.
Treehouse is not here to talk about higher APYs; rather, it aims to turn fixed income into a referable infrastructure. When interest rates have a public scale, products can be scaled, hedged, and priced.
@Treehouse Official #Treehouse $TREE
