New Approaches to DeFi Yields: A Wonderful Exploration of Treehouse's Fixed Income Layer
In today's DeFi world, the types of yields are diverse, with annual returns fluctuating wildly, making it dizzying. The emergence of Treehouse is like a breath of fresh air, bringing a new perspective on fixed income to DeFi. It has created a Decentralized Fixed Income Layer that relies on two core mechanisms: one is tAssets, which are combination yield assets after interest rate arbitrage; the other is DOR (Decentralized Offered Rates), which serves as a unified on-chain reference rate.
Specifically, suppose you have ETH or LST (Liquid Staking Token); you can deposit them into Treehouse and exchange them for tETH and other tAssets. The underlying strategy will automatically seek arbitrage opportunities across various lending and staking markets, preventing your yields from being fragmented by disparate interest rates.
At the same time, DOR provides a unified reference rate. It does not rely on any single institution but calculates a transparent and credible interest rate benchmark based on the on-chain performance of different assets through a decentralized mechanism, which is used for fixed income products in DeFi. In the future, you may even see ETH interest rate swaps, options, and other derivatives built on this rate.
In summary, Treehouse simplifies the complex and fragmented DeFi interest rate environment, enabling ordinary users to enjoy fixed income similar to traditional finance through smart contract mechanisms. This is both innovative and attractive for users accustomed to stable wealth management.
