The puzzle of DeFi fixed income is being completed by @Treehouse Official
We often say that DeFi is a parallel world to traditional finance, but when we think carefully, there is a huge gap that no one has filled: the fixed income market.
In TradFi, the fixed income market is worth over $130 trillion, five times that of equities, relying on a stable, transparent, and unified interest rate system. But what about DeFi? Interest rates are fragmented, lacking standards, and returns are entirely based on 'luck'.
The two major moves by @Treehouse Official perfectly fill this gap:
1️⃣ tETH: an upgraded version of LST, which not only has staking returns but also incorporates arbitrage logic, making returns more stable and higher.
2️⃣ DOR: a benchmark interest rate mechanism for DeFi, similar to LIBOR on-chain, providing a unified pricing basis for the entire market.
The combination of these two is building a 'truly financial market-like infrastructure' for DeFi.
To me, the significance of @Treehouse Official is not just a project, but a symbol of the entire industry moving towards maturity.