As an innovative project deeply engaged in the DeFi fixed income sector, TreehouseFi identifies two key issues that restrict the long-term competitiveness of projects in the industry: First, shallow asset value mining, with most similar projects only developing the 'basic income' function of assets, while the 'cross-scenario credit value' and 'ecological penetration value' of core assets like tAssets and RWA are being wasted, resulting in a comprehensive return rate of project assets that is 15%-20% lower than traditional 'fixed income +' products, and a lack of additional value attraction during institutional allocation; second, loose binding of user rights, with similar projects mainly connecting users through a single method of 'profit sharing', making it impossible for users' participation in ecological governance, liquidity provision, and other actions to translate into long-term rights, leading to retail user retention rates of less than 40%, and institutions lacking motivation for deep participation in the ecosystem.
In response to the aforementioned pain points, TreehouseFi innovatively builds a dual-core structure of 'asset value penetration and user rights symbiotic binding', activating deep asset value and strengthening the rights bond between users and projects through three mechanisms: multi-dimensional value disaggregation, layered rights system, and scenario collaborative circulation, addressing the core needs of target users (institutions and long-term retail users) while forming a unique competitive barrier for the project in the DeFi fixed income sector.
One, Asset Value Penetration and Mining: Activating the 'deep value potential' of project assets.
TreehouseFi understands that the multi-dimensional release of asset value is key to attracting institutional users to fixed income projects. The project breaks through the limitations of similar projects' 'single income' by innovatively designing a 'three-layer value penetration system', relying on technical architecture to achieve full-link release of asset value across 'basic layer - credit layer - scenario layer', enhancing comprehensive asset value.
From a technical implementation perspective, the project is based on the ERC-4626 extension protocol and cross-scenario value contracts to build a closed-loop value mining logic:
1. Basic value solidification layer: Unlike similar projects that only anchor a single interest rate, TreehouseFi links asset base income to dual indicators of 'decentralized interest rate benchmark (DOR) + asset liquidity premium'—the base annualized return of tUSDC is not only related to DOR's real-time supply and demand (currently about 3.0%), but also adds a premium of 0.2%-0.5% based on its cross-chain liquidity (such as borrowing needs on Arbitrum/Mantle chains), with base income 10%-15% higher than the average level of similar projects;
2. Credit value penetration layer: The project automatically extracts on-chain credit data of assets (tAssets continuous holding duration, RWA sufficient payment records), generating 'credit penetration certificates' (ERC-721)—users who hold tETH for 90 days and have no defaults can use this certificate as 'credit endorsement materials' for RWA issuance within the project, reducing the RWA pledge rate from 1.5 times to 1.2 times, without the need for third-party credit institutions to intervene;
3. Scenario value circulation layer: The project breaks down the barriers between 'staking - lending - RWA' scenarios, allowing asset value to penetrate and reuse across scenarios—users' tBTC assets in the staking scenario can have their 'no default record' synchronized to the lending scenario, reducing lending rates by 0.3%-0.5%; in RWA scenarios, 'sufficient payment records' can enhance asset collateral rates in staking scenarios by 2%-3%, achieving 'one asset, multiple scenario values'.
This system has increased TreehouseFi's comprehensive asset value by over 30% compared to similar projects, and the 'additional value acquisition rate' for institutional users during allocation reaches 12%-18%, becoming the core advantage of attracting institutional funds to join the project.
Two, User Rights Symbiotic Binding: Strengthening the 'long-term bond' of project user end.
Among TreehouseFi's target users, long-term retail users and institutional users account for over 60%. These users not only care about short-term returns but also value the long-term rights binding with the project. The project innovatively develops a 'layered rights symbiosis system', deeply binding users' 'ecological contributions' and 'rights appreciation', breaking the limitations of similar projects with 'single income and loose rights'.
Specific implementation revolves around the 'contribution-rights' closed loop:
• Rights layered design: The project divides rights into 'basic layer - value-added layer - core layer' based on users' contributions in the ecosystem (governance voting, liquidity provision, asset holding period)—the basic layer (holding assets for over 30 days) enjoys a 10% discount on fees; the value-added layer (participating in monthly governance voting ≥ 2 times) additionally gains priority subscription rights for new RWAs; the core layer (providing liquidity for over 6 months) can participate in project scenario rule optimization discussions, and asset returns enjoy an 'ecological premium' of 5%-8%;
• Dynamic rights circulation: User rights are adjusted in real-time according to contributions, requiring no manual intervention—certain retail users have participated in governance voting for three consecutive months, with rights automatically upgraded from the basic layer to the value-added layer, prioritizing subscription for the newly launched annualized 4.1% green energy RWA; a certain institution provided liquidity for over 12 months, upgrading to the core layer, participating in adjusting tUSDC cross-chain transaction fee parameters, reducing its own operating costs by 0.1%;
• Realization of rights value: The project ensures that rights can be directly converted into actual value—priority subscription rights for value-added layer users allow them to participate in high-yield RWA configurations 48 hours earlier than ordinary users; rule optimization rights for core layer users enable a 20% improvement in asset adaptability in scenarios, further strengthening the positive cycle of 'the more you contribute, the better your rights'.
This system has increased TreehouseFi's long-term retail user retention rate to 75% (compared to an average of 40% for similar projects), and the frequency of institutional user ecosystem participation has tripled since the initial entry, significantly strengthening the rights bond between users and the project.
Three, Scenario Collaborative Circulation: Opening up the 'value circulation channel' of the project ecosystem
To avoid the issues of 'scenario isolation and value accumulation' seen in similar projects, TreehouseFi relies on 'cross-scenario collaborative contracts' to open up the value circulation channels of 'staking - lending - RWA', enabling efficient circulation of asset value and user rights between scenarios, enhancing the overall vitality of the project ecosystem.
The collaborative logic focuses on two main directions:
1. Cross-scenario circulation of asset value: The project backend monitors the value demands of each scenario in real-time—when the RWA scenario requires more credit endorsement assets, it automatically pushes 'tAssets credit certificate reuse suggestions' to users in the pledge scenario, and upon user confirmation, the credit certificate from staking tETH can be synchronized with one click to the RWA scenario, obtaining pledge rate exemptions; when the lending scenario has excess liquidity, it guides idle tUSDC into the RWA scenario to enjoy an additional 0.3% scenario subsidy, improving asset value utilization by 45%;
2. Cross-scenario reuse of user rights: Rights acquired in one scenario can be synchronized to other scenarios—'core layer rights' obtained in governance scenarios can enjoy an additional 0.2% interest rate discount in lending scenarios; 'sufficient payment records' in RWA scenarios can enhance asset collateral rates by 1%-2% in pledge scenarios, achieving 'one scenario contribution, multiple scenarios benefit'.
A certain institutional user experiences a comprehensive asset return increase of 1.8 percentage points through the entire process of 'staking tETH to obtain credit certificates → RWA scenario pledge rate exemption → lending scenario interest rate discounts', demonstrating significant collaborative value of project scenarios.
Project ecosystem value expansion path.
Based on current architectural advantages and industry trends, TreehouseFi's ecological expansion path for the next 12 months is clear:
• Asset side: Plans to add two types of high-value assets 'green energy tAssets' and 'cross-border settlement RWA', further enriching asset value penetration scenarios, increasing comprehensive asset value by another 10%;
• User side: The goal is to attract more than 30 institutions to join (currently 8), with the long-term retail user base exceeding 80,000 (currently 25,000), and the proportion of core layer rights users increasing to 15%;
• Scenario side: Breaking down the value circulation between 'derivative scenarios' and existing core scenarios, supporting RWA income certificates for pledging arbitrage in derivative scenarios, expanding the number of scenario types from 3 to 5, and increasing ecosystem TVL from the current 400 million USD to 1.3 billion USD, entering the top 25 in DeFi fixed income project TVL rankings.
Through the core architecture of 'asset value penetration and user rights symbiotic binding', TreehouseFi not only addresses the common pain points of DeFi fixed income projects' 'shallow asset value and weak user stickiness', but also constructs a differentiated competitive barrier for the project. In the future, the project is expected to become a key node connecting crypto assets with traditional fixed income, promoting the upgrade of DeFi fixed income projects from 'single income tools' to 'value symbiotic ecosystems'.@Treehouse Official #Treehouse $TREE
