In the past few days in the community, the most discussed term has been “interest rate anchor.” It sounds quite academic, but to put it simply, it means whether there is a unified reference interest rate on-chain.
Previously in DeFi, we were accustomed to dazzling APYs: here 10%, there 25%, some even over a hundred. At first glance, it looks great, but over time you realize one problem: these interest rates lack a unified standard. What is reasonable? What is inflated? Everyone is actually uncertain.
So when Treehouse proposed using DOR as the “on-chain benchmark interest rate,” I saw many people’s eyes light up. Someone joked in the group: “Is this DeFi's SOFR?” Others said: “Finally someone is willing to be that ‘anchor of stability.’”
I particularly like the metaphor of “anchor of stability.” Because in this highly volatile market, we need something to give people a sense of security. Just like the sea can be turbulent, as long as there is an anchor, it won't be washed away without a trace.
Imagine a future where people no longer blindly chase various pools, but first refer to DOR to see if a certain yield is reasonable before deciding whether to participate. At that time, will DeFi resemble a mature financial market rather than just a speculative playground?
Perhaps, the light that Treehouse has ignited will become the reason for many to move forward with peace of mind.
