Transparent Mechanism + Community-Driven, Interpreting Treehouse's DOR Section
Fixed income loses its meaning if the data cannot be trusted. Treehouse addresses this challenge with DOR (Decentralized Offered Rates), allowing people to collectively participate in interest rate publication through a decentralized mechanism, rather than relying on centralized power.
Interestingly, the DOR mechanism includes incentives and punishment models. Participants (panelists) need to stake TREE or tAssets to initiate interest rate estimates; if accurate, they can receive rewards, while inaccuracies may lead to penalties. This mechanism, which maintains accuracy while preventing manipulation, makes the published interest rates more trustworthy.
Additionally, DOR is based on three principles: accuracy, decentralization, and compatibility—meaning it is not limited to a specific chain or asset, but can span multiple chains and asset types in the future, becoming a universal benchmark interest rate for DeFi fixed income products.
With community autonomy, this not only makes Treehouse more trustworthy but also provides users or ecosystem contributors with more ways to participate, including governance, incentive arbitration, data provision, and other aspects, forming a new ecosystem of multi-party governance.
