In the DeFi fixed income market, users have long faced the dilemma of 'choosing stability means locking liquidity, seeking flexibility means taking high risks' — wanting stable returns requires accepting long-term asset lock-up; wanting to adjust allocations at any time must bear the risk of significant yield fluctuations. TreehouseFi breaks out of the binary framework of 'non-stable or active' by anchoring the 'stable baseline' with DOR's dynamically balanced interest rate center, endowing 'active space' with the tAssets switching system, and connecting 'stability and activity' with layered liquidity tools, constructing a balanced ecosystem that allows users to 'maintain stability while adjusting on demand'. This breakthrough from 'dilemma choices' to 'on-demand switching' not only accommodates more diverse user needs but also becomes a fixed income infrastructure that combines stability and flexibility in the current crypto market.
I. Breaking the deadlock of 'stable and active dilemma': The balancing logic of DOR and tAssets
The core issue of 'stable and active opposition' lies in 'the binding of yield and liquidity is too rigid, and risk is positively correlated with flexibility'. TreehouseFi's dual-core design precisely dismantles this contradiction:
• DOR: More than just a stable benchmark, but a 'regulator' for flexible adjustments: Unlike traditional fixed rates that are 'locked in', DOR retains flexible space on the basis of 'stability' through 'Panelist staking $TREE quotes + dynamically weighted liquidity risk coefficients' — when market liquidity is abundant, TESR (Ethereum staking rate) stabilizes in the range of 4.5%-4.7%; when liquidity tightens (e.g., Ethereum staking volume suddenly increases by 15%), interest rates automatically increase by 0.2%-0.3%, ensuring base yields do not shrink while capturing market volatility benefits. By the end of October 2025, data shows that yield products based on DOR have annualized volatility of only 0.4%, but the frequency of flexible adjustments is three times that of fixed-rate products, achieving 'stability with vitality'.
• tAssets: More than just a yield vehicle, but a 'transformable asset' that can be switched on demand: Users deposit ETH/stETH to obtain tAssets, supporting 'no-loss switching' — users holding 'stable tETH' (only base yield 4.6%, redeemable at any time) can switch to 'flexible tETH' (base yield +1.8% cross-chain arbitrage, T+1 redemption) for free within 10 minutes, without needing to re-stake or pay high fees. Crucially, historical yield accumulates automatically after switching, ensuring no losses due to adjustments. Currently, the 'flexible switching rate' among tAssets users reaches 35%, with an average of 1.2 adjustments per quarter, satisfying short-term liquidity needs while preserving long-term yields.
II. Professional moat: From 'balance design' to the hard support of 'secure landing'
TreehouseFi's 'stable and active balance' is not a 'compromise in the middle ground,' but relies on 'layered risk control + liquidity assurance + institutional verification' to ensure 'balance without imbalance':
• Precise protection of layered risk control: The protocol sets differentiated risk control for different types of tAssets — 'stable' underlying assets are 100% stored in multi-signature wallets, with a collateralization ratio ≥120%; 'flexible' additionally connects to a 'liquidity warning system', automatically pausing the switching function when cross-chain arbitrage pool funds are insufficient, avoiding liquidity risk. Simultaneously, the risk reserve (currently $16 million) is allocated in layers according to tAssets type, with 60% for stable and 40% for flexible, ensuring asset safety for users with different needs. Currently, the ecosystem's bad debt rate remains stable at 0.007%, with zero asset loss cases during the switching process.
• Seamless liquidity assurance: To address the liquidity pain point of 'flexible switching', TreehouseFi has launched a 'cross-scenario liquidity pool' — integrating liquidity from protocols like Aave and Pendle, when users switch tAssets types, funds in the pool are prioritized to ensure that redemption takes no more than 10 minutes (industry average 30 minutes). By October 2025, the pool's maximum daily switching volume reached $8 million, still maintaining zero delay, with a liquidity coverage rate of 150%.
• Institutional verification of 'balanced credibility': By the end of October 2025, TreehouseFi partnered with Standard Chartered Asset Management to launch the 'stable and active balance institutional product' — institutional users can allocate '70% stable tETH (4.7% annualized) + 30% flexible tETH (6.5% annualized)', with monthly adjustment of allocation ratios, and funds are custodied by Standard Chartered's digital asset custody department, with the initial fundraising exceeding $50 million, becoming the first DeFi protocol to achieve 'stable and active allocation' for top-tier banks in Central and Eastern Europe.
III. Trend alignment: Anchoring market increments of 'diverse needs'
Currently, the crypto market's 'user demand is shifting from 'single preference' to 'dynamic adjustment', and TreehouseFi's balanced design perfectly hits this core trend:
• Institutional dynamic allocation needs: Traditional asset management institutions need to adjust the 'stable/flexible' asset ratio based on market changes, and TreehouseFi's tAssets switching mechanism meets their 'dynamic risk control' needs. Currently, 19 traditional asset management institutions have achieved 'monthly adjustment of allocation ratios' through its platform, with an asset comprehensive annualized return 1.2%-1.5% higher than fixed allocations, and risk volatility reduced by 20%.
• RWA's stable and active integration: Different from similar projects with a 'long lock-up period for RWA', TreehouseFi introduces the 'Flexible RWA-tAssets package' — users can invest 50% tETH into 'Singapore commercial real estate RWA (5.4% annualized, locked for 30 days) + 50% flexible tETH (6.5% annualized, T+1 redemption)', after 30 days they can choose to reinvest or redeem all, balancing the stability of RWA with the flexibility of tAssets. The first phase attracted over 7,000 retail users, of which 62% chose to adjust their allocation ratio after maturity, validating the demand for 'stable and active integration.'
• Simple balance optimization for retail users: For ordinary users, TreehouseFi has launched the 'stable and active allocation calculator' — by inputting 'fund usage plans (e.g., funds may be needed in 3 months)', it automatically recommends the optimal ratio of '60% stable + 40% flexible', and displays 'expected yield, maximum redemption time, risk level' in real-time; it also offers a 'one-click adjustment' feature to avoid complex operations. Currently, the 'dynamic adjustment rate' among retail users reaches 48%, far exceeding the industry average of 18%, with the core being 'no need to struggle, easy balance'.
The essence of TreehouseFi's innovation is to be the 'stable and active balancer' of DeFi fixed income — using DOR to maintain a stable baseline, leveraging tAssets to provide flexible space, and using liquidity tools to bridge both. As institutional dynamic allocation needs rise, retail users' awareness of 'on-demand adjustments' increases, and scenarios for stable and active integration of RWA expand, its value as a 'balanced fixed income hub' will become increasingly prominent. For users, whether they are ordinary people needing 'basic stability and occasional adjustments' or institutions pursuing 'dynamic optimized allocation', TreehouseFi provides a solution of 'no compromise, on-demand balance,' while the $TREE token, as the creator of the ecological 'balance rules' and the core of yield distribution, will continuously release long-term value amid diverse demand surges.
