The Evolution of the Interest Rate Benchmark in DeFi: What TreehouseFi Might Change in the Future
In traditional finance, interest rate benchmarks determine the pricing of various financial instruments such as bonds, loans, and swaps. However, in the world of DeFi, there has always been a lack of a unified reference.
TreehouseFi is attempting to fill this gap by creating a truly decentralized interest rate standard with DOR, allowing the entire DeFi ecosystem to speak through data.
Currently, TreehouseFi has adopted the Ethereum staking interest rate as the first DOR curve, providing a reference scale for users across different protocols. For example, if you want to borrow ETH or deposit ETH, you can know what a reasonable interest rate is. Unlike before, where the data from lending platforms A, B, and C relied solely on personal comparisons, which was time-consuming and difficult to judge reliability.
Moreover, if more and more protocols adopt DOR as a reference, then TreehouseFi's DOR curve could become the central hub for DeFi interest rates. This would enable unified pricing for interest rate swaps, on-chain bonds, and fixed-income products, reducing arbitrage opportunities and making the entire system more stable and predictable.
In other words, what TreehouseFi offers is not just a yield tool; it may also be changing the underlying rules of product design in DeFi's future, clarifying financial logic and making assets easier to flow and price. If we can see a DOR-based interest rate swap market in the future, it would indeed mark another step forward for DeFi.
