During the development of blockchain finance, the fixed income sector has faced many pain points, such as fragmented interest rates and a lack of reliable pricing benchmarks. The emergence of the Treehouse protocol provides an effective remedy to address these issues.
Treehouse integrates interest rates scattered across various DeFi platforms through its innovative tAssets technology. After depositing assets, users receive tAssets, which can automatically arbitrage between different platforms to optimize returns. For example, when the staking rate on platform A is higher than the borrowing rate on platform B, tAssets will automatically borrow assets from platform B and then stake them on platform A. Once the returns are realized, the borrowed assets are returned, thus maximizing returns.
In terms of pricing, the DOR mechanism addresses the difficulty of pricing fixed income on the blockchain. It draws on the traditional financial benchmark rate setting approach, combined with the decentralized characteristics of blockchain, whereby multiple stakeholders submit interest rate predictions. Economic incentives are used to ensure accuracy, generating a reliable benchmark rate. This benchmark rate provides a solid foundation for pricing fixed income products, making the development and trading of blockchain fixed income products more standardized and regulated.
Currently, the Treehouse protocol has attracted a large number of users and capital, and its ecosystem is continuously growing. With the ongoing improvement of the Treehouse protocol, it will play an increasingly important role in the blockchain fixed income market, providing investors with more stable and reliable returns.
