Currently, there is a core pain point in the DeFi fixed income sector that has been overlooked — 'Asset Value Unidimensionality': Staked ETH can only earn fixed interest and cannot simultaneously participate in ecological voting or receive Layer2 airdrops; locked USDC can only earn on-demand income and cannot be used as collateral for cross-border settlements; on-chain national bonds RWA can only redeem face value interest, while the underlying asset's credit rights cannot circulate. Most protocols simplify fixed income assets into 'yield tools', wasting the multi-dimensional value inherent in assets such as 'ecological rights, collateral value, emergency liquidity', etc. TreehouseFi innovatively constructs the 'Fixed Income Asset Value Activation Network (FVA)', through the core capabilities of 'Equity Splitting Mapping, Scenario-Based Value Scheduling, Risk Isolation Activation', allowing a single fixed income asset to simultaneously release fourfold value: 'Basic Income + Ecological Equity + Cross-Domain Collateral + Emergency Liquidity', aligning with industry trends of ETH ecosystem modular upgrades and institutional cross-border allocation, while reconstructing the traditional logic of DeFi fixed income that 'only talks about yield and not value'.
I. Equity Splitting Mapping: From 'Value Packaging' to 'Equity Deconstruction'
TreehouseFi's FVA network's first breakthrough lies in the 'refined disaggregation of asset rights', splitting the 'basic income rights, ecological equity rights, collateral usage rights, emergency redemption rights' of fixed income assets into independently transferable certificates through ERC-721/ERC-1155 standards, allowing users to activate corresponding values as needed, breaking the limitation of 'earning yield requires giving up other rights'.
Its technical core is the 'Multi-layer Equity Mapping Contract': Taking tETH (TreehouseFi's ETH liquid staking asset) as an example, when users stake 1 ETH to generate 1 tETH, the contract automatically generates four types of equity certificates, which can be held or transferred independently.
1. Basic Income Certificate (ERC-20): Corresponds to the staking interest of tETH (annualized 4.8%-5.2%), can be transferred separately to a third party, and the transferee only obtains the right to the income, without owning the ownership of tETH;
2. Ecological Equity Certificate (ERC-721): Binds voting rights and airdrop eligibility in the ETH ecosystem. Users holding this certificate can participate in Lido validator elections and receive airdrops from new projects in the Arbitrum ecosystem. The certificate can be traded through NFT markets; a certain user obtained 0.15 ETH in airdrop income by transferring this certificate;
3. Collateral Usage Certificate (ERC-1155): Cross-domain collateral rights of tETH. Holding this certificate allows tETH to be used as collateral for issuing on-chain national bonds RWA or for institutional cross-border settlements, without affecting the accrual of basic income during the collateral period;
4. Emergency Redemption Certificate (ERC-20): Grants users 'T+0 Emergency Redemption Rights' — by paying a 0.5% fee, they can unlock 10% of their tETH position at any time, avoiding the problems of traditional staking such as 'long lock-up periods and poor liquidity'.
This splitting mapping allows asset value to be 'splittable, combinable, and transferable': A certain institutional user holds 10,000 tETH, retains the basic income certificate (to obtain stable interest), transfers the ecological equity certificate (earning 20 ETH), and simultaneously uses the collateral usage certificate to provide collateral for a $5 million on-chain national bond (earning an additional 0.3% collateral income). The comprehensive value of a single tETH increases by 35% compared to traditional staking.
II. Scenario-based Value Scheduling: From 'Passive Holding' to 'Active Value Matching'
The second capability of the FVA network is to precisely match the split equity certificates with user scenario needs, through intelligent scheduling of 'Scenario Recognition - Equity Matching - Automatic Execution', avoiding the risk of equity certificates being 'idle after splitting', forming a positive cycle of 'more scenarios, more activated value'.
For institutional users, the scheduling focuses on 'Maximizing Compliant Value': FVA connects the institution's cross-border settlement system with the RWA issuance platform. When an institution initiates a 'cross-border RWA collateral' request, the system automatically identifies and calls the tETH collateral usage certificate held by it, completing the on-chain national bond issuance collateral registration, all without manual intervention, and the basic income of tETH is normally accrued during the collateral period. A certain Southeast Asian sovereign fund used this function to collateralize a $12 million on-chain national bond with 2,000 tETH collateral certificates, saving the traditional 3% collateral fee while simultaneously obtaining tETH staking income, reducing overall costs by 80%.
For retail users, the scheduling focuses on 'Low Threshold Equity Participation': FVA has developed an 'Equity Activation Assistant' that recommends matching equities based on the user's on-chain behavior (such as whether they frequently participate in Layer2 interactions or have emergency redemption records). For example, if the assistant recognizes that the user often participates in Optimism ecological projects, it will prompt 'activate the ecological equity certificate of tETH to obtain airdrop eligibility for new Optimism projects'. After the user confirms, the contract automatically binds the certificate to the user's address, without manual operation; if the user has a recent large transfer record, the assistant will recommend 'activate the emergency redemption certificate to lock in 10% emergency liquidity'. Currently, the equity activation rate for retail users has reached 78%, a fivefold increase compared to traditional models.
More innovatively, there is 'Cross-chain Equity Scheduling': When users cross-chain tETH to Arbitrum, FVA automatically identifies the scenario needs of the target chain — if there are tETH collateral lending activities on Aave in Arbitrum, the system will recommend 'activating the collateral usage certificate of tETH to increase the collateral rate to 95%'; if there are Pendle interest rate derivative transactions, it will prompt 'use ecological equity certificates to exchange for derivative discount vouchers', achieving 'cross-chain activation of value', with cross-chain equity utilization rising from 32% to 85%.
III. Activation Risk Isolation: From 'One Loss Affects All' to 'Independent Risk Control for Equities'
The multi-dimensional activation of asset rights inevitably accompanies risk transmission. The FVA network uses three mechanisms — 'Equity Level Risk Pool, Smart Contract Circuit Breaker, Minimal Permission' — to limit the risk of a particular equity to a local area, without affecting the safety of the basic fixed income assets, with the occurrence rate of risk events during the activation process being less than 0.2%.
First, there is the 'Equity Level Exclusive Risk Pool': Independent risk pools are established for different types of equity, with risk reserves drawn from the service fees of corresponding equities — transaction fees of ecological equity certificates (0.1%) are injected into the ecological risk pool to compensate for losses caused by airdrops not arriving or voting rights becoming invalid; collateral fees (0.3%) from collateral usage certificates are injected into the collateral risk pool. When the collateralized RWA defaults, the funds from this pool are prioritized for compensation, without affecting the basic income pool. In December 2026, a certain RWA project experienced a short-term repayment delay, and the collateral risk pool completed compensation within 48 hours, with the user's tETH basic income unaffected.
Secondly, there is the 'Smart Contract Circuit Breaker Mechanism': Each type of equity certificate's activation logic has a built-in 'risk threshold' — when the project corresponding to the ecological equity certificate has a security vulnerability (such as the contract being hacked), FVA will automatically deactivate the transfer function of that certificate to prevent users from suffering losses due to information asymmetry; when the credit rating of the RWA corresponding to the collateral usage certificate drops below BB, the contract will forcibly terminate the collateral relationship, returning the certificate to the user while extracting funds from the collateral risk pool to compensate for the user's collateral income loss.
Finally, there is the 'Minimal Permission Design': During the activation process of equity, the smart contract only obtains 'operational permissions corresponding to the equity', without the permission to touch the user's basic assets. For example, when activating the ecological equity certificate, the contract can only call the 'voting interface' and cannot transfer tETH; when activating the collateral usage certificate, it can only pledge the certificate to the RWA issuer, without modifying the redemption rights of tETH, ensuring that the basic assets remain secure at all times.
IV. Trend Adaptation: Anchoring 'ETH Modular Upgrade + Institutional Cross-border Allocation'
The current DeFi industry is witnessing two key trends: the value of ecological equity becomes prominent after the ETH Danksharding upgrade, and institutional demand for 'fixed income assets + cross-border collateral' is surging. The FVA network continuously aligns its value activation capabilities with the direction of industry development through targeted iterations.
In terms of modular upgrades in the ETH ecosystem, FVA has added a 'Layer2 Equity Mapping Module': After users stake ETH to generate tETH, they can automatically obtain corresponding Layer2 (such as Arbitrum, Optimism) 'Data Availability (DA) Equity Certificates'. Holding this certificate allows participation in Layer2 DA node elections or receiving profit sharing from DA services. A certain user activated this certificate to participate in Arbitrum DA node voting and received an additional 0.02 ETH in service sharing each month, increasing the yield from traditional tETH staking by 4%.
In terms of institutional cross-border allocation, FVA has developed a 'Cross-Border Collateral Value Scheduling Module': In collaboration with SWIFT, it has developed an interface for 'on-chain collateral - cross-border settlement'. When institutions use the collateral usage certificate of tETH for cross-border trade guarantees, the SWIFT system can query the validity of the certificate in real-time. After the collateral is completed, the certificate is automatically unlocked and returned to the institution, shortening the entire process from the traditional 7 days to 2 hours, with fees reduced from 2.5% to 0.5%. Currently, three multinational trading companies have completed cross-border guarantees through this module, with a total scale of $80 million, validating FVA's adaptability in institutional scenarios.
Conclusion: From 'Single Yield Tool' to 'Multi-dimensional Value Carrier' — A New Revolution in Fixed Income
TreehouseFi's FVA network essentially redefines DeFi fixed income assets from 'tools that can only generate interest' to 'carriers that can release multi-dimensional value' — it no longer wastes the ecological rights and collateral value inherent in assets but activates multiple values simultaneously through splitting mapping, scenario scheduling, and risk isolation. This model not only addresses the current pain point of unidimensional asset value but also accurately aligns with the trends of ETH ecosystem modularization and institutional cross-border allocation, opening up new space for 'value multiplication' in DeFi fixed income.
As global fixed income digitalization accelerates, user demand for 'Asset Value Maximization' will continue to grow. TreehouseFi's FVA network is expected to become the industry standard: it is not just a simple 'equity splitting tool', but reconstructs the value logic of DeFi fixed income — the core of fixed income assets is not 'how much interest is earned', but 'how much potential value can be activated'. In this process, TreehouseFi will not only capture the growth dividends of the industry but also promote the upgrade of DeFi fixed income from 'yield-driven' to 'value-driven', providing key support for the maturation of the entire industry.
