In decentralized finance (DeFi), yields are often fragmented: the interest rates of different protocols vary greatly, making it difficult for investors to predict long-term returns. The emergence of the Treehouse protocol aims to fill this gap, with the goal of bringing the concept of fixed income from traditional finance onto the blockchain.
Treehouse's design has two core components. The first is tAssets. It is a type of 'enhanced liquid staking asset.' After users deposit staking assets like ETH or stETH, they will receive corresponding tAssets. The protocol automatically utilizes these assets to execute arbitrage strategies, such as low-interest borrowing and circular staking, resulting in higher yields than ordinary staking. Ultimately, tAssets will continuously appreciate over time, similar to an on-chain 'yield certificate.'
The second component is DOR (Decentralized Offered Rate). In traditional financial markets, interest rate benchmarks like LIBOR or SOFR determine the pricing of products such as loans and bonds. However, these benchmarks often have centralization issues. Treehouse's DOR generates interest rates in a decentralized manner: community members collectively submit and calibrate data, with correct predictions rewarded and incorrect ones penalized. The resulting interest rate curve is transparent, fair, and difficult to manipulate, providing a reliable foundation for future on-chain fixed income products.
Treehouse also features a GoNuts incentive program to promote community participation. Users holding tAssets, providing liquidity, or holding Squirrel NFTs can earn points, which can be exchanged for rewards in the future. This not only enhances the protocol's activity but also closely links community and ecosystem growth.
Throughout the entire system, the TREE token serves as a key link. It is both a governance token and an incentive tool, playing a role in ecological development and user rewards. Treehouse has announced that it will conduct a token generation event (TGE) on July 29, 2025, marking an important milestone for the protocol.
In summary, the Treehouse protocol aims to create a fixed income infrastructure for DeFi: tAssets make yields more efficient, DOR provides a reliable interest rate benchmark, and TREE and GoNuts ensure the incentive and sustainable development of the ecosystem. It makes on-chain yields more transparent and predictable, providing solid support for the future of the DeFi financial market.
