Currently, there is a common limitation in the DeFi fixed-income field—'singular asset functionality': The staked tETH can only earn fixed staking yields and cannot convert its credit value into collateral endorsement for RWA issuance; the held tUSDC can only earn on-demand interest and cannot use its trading volume to accumulate credit limits for borrowing; on-chain government bond RWA can only realize face value returns, and the underlying asset's industry credit cannot empower users in other scenarios within the ecosystem. Most protocols simplify fixed-income assets into 'interest-generating tools', ignoring the multidimensional values of 'credit, equity, collateral', leading to a severe underestimation of the comprehensive value of the assets held by users. TreehouseFi innovatively constructs the 'Multidimensional Value Activation System (MVA) for Fixed Income Assets', through 'value dimension disassembly, scenario-based value matching, dynamic synergy gains' three core capabilities, allowing a single fixed income asset to simultaneously release fourfold value of 'basic yield + credit empowerment + ecological rights + cross-scenario collateral', which not only fits the industry trend of RWA scaling and institutional multidimensional allocation but also reconstructs the traditional logic of DeFi fixed income of 'only talking about income, not value extension'.
1. Value Dimension Disassembly: From 'Single Yield' to 'Multidimensional Rights Separation'
The first breakthrough of TreehouseFi's MVA system lies in disassembling the value of fixed income assets into independently transferable dimension units through 'multidimensional rights mapping contracts', breaking the limitation of 'to earn income, one must give up other values'. Taking tETH, tUSDC, and on-chain government bond RWA as examples, the specific disassembly logic is as follows:
• The multidimensional disassembly of tETH: After a user stakes 1 ETH to generate 1 tETH, the contract automatically generates 4 types of value units, each of which can be independently activated or transferred—
1. Basic Yield Unit (ERC-20): Corresponding to the staking interest of tETH (annualized 5.0%-5.3%), the yield is synchronized to the user's account per block and supports separate transfer to third parties;
2. Credit Endorsement Unit (ERC-721): Binds the on-chain holding duration of tETH and historical compliance records (such as whether it was redeemed on time, whether there was over-collateralization); holding this unit can serve as 'credit enhancement materials' for RWA issuance. Holding one tETH for 90 days can increase the exemption ratio of the RWA issuance collateral rate (from 1.5 times down to 1.3 times);
3. Ecological Rights Unit (ERC-1155): Covers governance voting rights of the ETH ecosystem and Layer 2 airdrop qualifications. Users can participate in Lido validator elections or gain priority subscription rights for new projects in the Optimism ecosystem with this unit;
4. Cross-scenario Collateral Unit (ERC-20): Grants tETH cross-chain collateral capabilities, allowing this unit to use tETH as 'excess collateral' for borrowing on the Arbitrum chain, increasing the collateral rate to 95% (ordinary collateral rate 92%).
• The multidimensional disassembly of on-chain government bond RWA: A one-year AA+ rated government bond RWA is split into 'basic yield unit' and 'industry credit unit'—the former corresponds to a 3.8% face value yield, while the latter relates to the industry credit of the government bond issuer (for example, a bond issued by a new energy enterprise can use its credit unit for additional collateral in DeFi projects in the new energy sector). A certain user used this credit unit to participate in a new energy mining project, increasing their collateral capacity by 20% compared to ordinary users.
This disassembly is achieved through a combination of ERC-20/ERC-721/ERC-1155 multi-standards, with the ownership, circulation, and activation of each value unit being fully traceable on-chain, achieving a 100% success rate of disassembly, with no dimensional rights conflicts occurring. A certain institutional user holds 10,000 tETH, transfers the basic yield unit to obtain stable cash flow, and retains the credit endorsement unit for RWA issuance enhancement, increasing the comprehensive value of a single tETH by 40% compared to traditional staking.
2. Scenario-based Value Matching: From 'Passive Holding' to 'Precise Value Implementation'
The core value of the MVA system lies in precisely matching the disassembled value units to user scenario needs, avoiding the 'idling of value units after disassembly' through the 'scenario-value matching engine', creating a positive cycle where 'the more scenarios, the more value activated'.
For institutional users, matching focuses on 'compliance-driven value maximization':
TreehouseFi customized a 'RWA issuance + cross-chain collateral' scenario solution for a European asset management firm—this institution used the 'credit endorsement unit' of their 5000 tETH holdings to reduce the collateral rate of on-chain government bond RWA from 1.5 times to 1.3 times, freeing up 1000 tETH in collateral; simultaneously using the 'cross-scenario collateral unit', 3000 tETH was utilized as on-chain collateral for cross-border trade, reducing settlement time from the traditional 7 days to 2 hours, and fees from 2.5% to 0.5%. Through the scenario matching of value units, the utilization rate of the institution's tETH assets increased by 65%, and overall costs decreased by 70%.
For retail users, matching focuses on 'low-threshold value participation':
MVA has developed the 'Value Activation Assistant', which recommends suitable value units based on the user's on-chain behavior. For example, if it identifies that a user frequently engages in interactions within the Polygon ecosystem, the assistant suggests 'activating the ecological rights unit of tETH to obtain airdrop qualifications for new projects in Polygon.' After the user confirms, the contract automatically binds the unit to their Polygon address without manual cross-chain actions; if the user has a small borrowing need, the assistant recommends 'activating the credit unit of tUSDC'—based on the user's 6-month tUSDC holding record, their Aave borrowing limit increases from $500 to $800, and the interest rate decreases by 0.3 percentage points. Currently, the activation rate of value units for retail users reaches 82%, a 5-fold increase compared to traditional models.
More innovatively, there is 'cross-chain value matching': when users cross-chain tUSDC to Avalanche, the MVA automatically identifies the target chain scenario—if there is an 'USDC collateral mining RWA token' activity on Avalanche, the system recommends 'activating the collateral unit of tUSDC, increasing collateral mining yield by 10%'; if there is a 'credit stake fee reduction' activity, it prompts 'exchange the credit unit of tUSDC for a 0.05% fee discount voucher', realizing 'value activation upon cross-chain', increasing the cross-chain value utilization rate from 35% to 88%.
3. Dynamic Synergy Gains: From 'Dimension Isolation' to 'Value Linked Appreciation'
The ultimate breakthrough of the MVA system lies in allowing different value dimensions to form 'synergistic effects'—activating one dimension can enhance the value of other dimensions, avoiding isolation between dimensions, and creating a closed loop of 'the more activated, the more value overlaps'.
Its synergy logic is realized through 'value linkage contracts':
1. Basic Yield and Credit Unit Synergy: When the basic yield of the user's tETH meets the standard (e.g., continuously obtaining sufficient staking yield for 3 months), the credit enhancement capability of their credit unit automatically increases—the RWA collateral rate exemption ratio rises from 10% to 15%. A certain user thus reduced their RWA collateral rate from 1.4 times to 1.25 times, saving 15% of their collateral assets;
2. Ecological Rights and Collateral Unit Synergy: Users participating in ecological governance voting (activating ecological rights units) see a reduction in the cost of using their collateral units—cross-chain collateral fees drop from 0.1% to 0.07%. A certain arbitrage user saves about $300 in cross-chain fees each month through this synergy;
3. RWA Credit and Basic Yield Synergy: Holding the 'industry credit unit' of on-chain government bonds RWA can enhance the basic yield of tUSDC—holders of the credit unit of RWA in the new energy sector saw the annualized yield of tUSDC from 2.8% increase to 3.1%, encouraging users to deeply engage in the RWA ecosystem.
In December 2026, an institution combined 'activating tETH credit units (reducing RWA collateral rate) + synergizing basic yield (increasing credit enhancement) + linking collateral units (reducing cross-chain costs)' to raise the comprehensive annualized yield of a single tETH from 5.3% to 6.1%. The synergy contributed 0.8 percentage points, validating the value of the linkage mechanism.
4. Trend Adaptation: Anchoring to RWA Scaling and Institutional Multidimensional Allocation
Currently, the DeFi industry is witnessing two key trends: RWA assets accelerating on-chain, requiring a large amount of credit endorsement and collateral assets; after institutions enter the market, there is a need for 'income + credit + collateral' multidimensional asset allocation. The MVA system targets iterative adjustments to precisely align with trend demands.
In terms of RWA scaling, MVA upgraded the 'Credit Enhancement Module': it introduced the function of 'multi-asset credit stacking'—users can stack the credit units of tETH, tBTC, and RWA to further reduce the RWA collateral rate. A certain enterprise reduced the collateral rate of $100 million RWA from 1.5 times to 1.1 times by stacking the credit units of three types of assets, saving $40 million in collateral funds and promoting a 50% increase in RWA issuance efficiency.
In terms of institutional multidimensional allocation, MVA has launched the 'Institutional Value Customization Suite': it supports institutions to customize value dimension activation rules—certain sovereign funds require 'only activating the credit and collateral units of tETH, freezing the ecological rights unit (to avoid governance risks)', and MVA fulfills this requirement through customized contracts; a certain hedge fund needs 'daily calculation of value synergy gains, monthly settlement', and the system meets their refined management needs through real-time data synchronization and periodic settlement. Currently, 16 of the global Top 50 asset management firms have configured assets through this suite, totaling $820 million, accounting for 68% of MVA's total TVL.
Conclusion: The Fixed Income Revolution from 'Single Tool' to 'Value Carrier'
The MVA system of TreehouseFi essentially redefines DeFi fixed-income assets from 'tools that can only generate interest' to 'carriers that can release multidimensional value'—it no longer wastes the credit, equity, and collateral value contained in the assets, but instead creates a comprehensive value far exceeding 'interest' by disassembling, matching, and collaborating, allowing a single asset to generate far more than just 'interest'. This model not only addresses the pain point of current asset functionality being too singular but also accurately aligns with the trend of RWA scaling and multidimensional institutional allocation, opening up a new space of 'value multiplication' for DeFi fixed income.
With the acceleration of global fixed-income digitization, 'multidimensional value activation capabilities' will become the core of industry competition. The MVA system of TreehouseFi is expected to become the standard: it is not a simple 'equity splitting tool', but rather reconstructs the value logic of DeFi fixed income—the core of fixed income assets is not 'how much interest can be earned', but 'how much potential value can be activated'. In this process, TreehouseFi will not only capture the industry's growth dividends but also promote the upgrade of DeFi fixed income from 'income-driven' to 'value-driven', providing key support for the maturation of the entire industry.
