In traditional finance, the size of the fixed income market is five times larger than that of stocks, with a total scale exceeding 130 trillion USD. Why? Because it offers stable, transparent, and predictable interest rate returns.
In contrast, the biggest problem in DeFi is "interest rate fragmentation." Different protocols have different interest rates, lacking a unified standard. Users seem to have many choices, but in reality, it is difficult to determine which returns are more reliable.
The DOR (Decentralized Offered Rates) launched by @Treehouse Official aims to solve this problem. It is an on-chain interest rate benchmark system, similar to LIBOR or SOFR in the TradFi world. Through quoting nodes and a transparent algorithm, Treehouse unifies the calculation of interest rates across different scenarios such as staking, lending, and re-staking, providing a credible reference indicator.
This means that DeFi will finally have a "benchmark interest rate," providing a unified basis for pricing various financial products.
