The fixed income sector in decentralized finance (DeFi) faces a fundamental problem known as the “broken value loop”:

A loss of 2% to 5% when assets move between temporary storage and lending due to the constant revaluation of collateral.

Reject users from participating in Risk Weighted Asset (RWA) investments due to asset mismatch (e.g., tETH).

Isolation between scenarios (lending, RWA, derivatives) leads to inconsistent risk ratings and duplicate risk management costs.

Most protocols focus on “optimizing a single point” rather than building an integrated asset-scenario-user loop.

To solve this, TreehouseFi created the FVCN (Fixed-income Value Closed-loop Network) that reconnects assets, scenarios, and users across three main pillars:

1. Lossless Value Transfer — From “Loss Transfer” to “Feature Adaptation”

TreehouseFi has developed an “adaptive contract for asset attributes across scenarios,” which allows assets to automatically adjust their characteristics (collateralization ratio, risk rating, income structure) as they transition between scenarios, without revaluation and loss of value.

Practical examples:

From staking to lending: When transferring tETH from TreehouseFi staking (92% collateral) to Aave, the contract reads the holding history (60 days without default) and automatically adjusts the collateral to 94%, making the transfer a zero-loss instead of a 3% one.

From Lending to RWA: tETH used in Aave is being staked in on-chain treasuries, with the rating being raised from “regular” to “high-quality,” and the investment threshold being lowered from $10,000 to $5,000.

From RWA to Derivatives: When you convert an RWA income certificate to Pendle, the contract reads the full redemption history and reduces the margin from 20% to 15%, releasing capital.

This technology is built on ERC-4626 and data consensus standards, and achieves a transfer success rate of up to 99.8%.

2. Demand Reflection — From “Assets Driven by Supply” to “Assets Driven by Demand”

The most significant innovation of FVCN is the “Demand Hub,” where assets are tailored to user needs, rather than forcing assets that may not find demand.

Mechanism of action:

1. Collect user needs: via on-chain behavior analysis + surveys.

Institutions disclose criteria such as: investment size ($50M), risk level (≤1%), preferences (RWA + derivatives).

Hashing automatically infers their behavior (e.g., tUSDC redemption frequency = short liquidity preference).

2. Converting requests into asset transactions: Algorithms translate user needs into a practical portfolio.

Example: Asset Manager Order → tUSDC 60% + RWA AA 40%.

3. Apply dynamic adjustments: Smart contracts adjust asset attributes (such as raising the redemption limit or changing the interest rate) to precisely meet demand.

Result: Order fulfillment rate increased from 68% to 96%.

3. Collaborative Integration — From “Isolation” to “Enabling Mutual Scenarios”

FVCN provides data exchange contracts between scenarios, allowing lending, RWA, and derivatives to share risk assessments and performance records.

Benefits:

Risk Rating Sharing: A “no default” lending record is automatically used in RWA, without duplicate KYC checks.

Asset Performance Alignment: tETH's full pledge history reduces derivatives margin from 20% to 12%, freeing up 40% of capital.

Income Data Link: RWA Recovery History Increases tUSDC lending limit from $5,000 → $8,000.

Result: Reducing risk costs from 1.2% → 0.3%, reducing transaction time from 1 week → 1 day, and increasing profit by +0.6%.

4. Adapting to DeFi trends

RWA Zero Loss: Supports asset transfers via investment, escrow, and settlement without losses, increasing user participation by +55%.

Multi-scenario institutional management: A dynamic dashboard allows $100M to be reconfigured between Staking (40%) + RWA (30%) + Derivatives (30%), with return volatility set at ±0.2%.

Conclusion

TreehouseFi's FVCN transforms DeFi's fixed income from a "single flow, value loss" model to a closed-value collaborative system:

Zero loss via automatic feature adaptation.

Demand drives supply rather than userless assets.

Mutual empowerment of scenarios rather than isolation.

As fixed income digitization accelerates globally, TreehouseFi is reshaping the value logic of DeFi, bringing assets, scenarios, and users into an integrated loop, transforming from a mere “toolkit” to a standardized infrastructure for Web3 fixed income.

$TREE #HEMIBinanceTGE #BNBATH900 @Treehouse Official #treehouse