As a leading innovative project focusing on the DeFi fixed income track, TreehouseFi has long identified two core pain points restricting the deep development of the industry: first, the singularity of asset value dimensions, as most similar projects bind the value of core assets (tAssets, RWA) solely to 'basic annualized returns', ignoring the additional value brought by 'scenario contributions and credit accumulation'—the difference in income between holding tETH for one year with deep ecosystem participation and holding tETH for one month is merely the amount of return, with no value tier distinction, lacking 'value increment' as a core attraction for long-term institutional allocation; second, the virtualization of user participation value, as similar projects provide users with 'symbolic rewards' (such as point badges) for their 'ecological participation behaviors' (e.g., governance voting, liquidity provision, risk monitoring), which cannot be converted into actual operational discounts or asset appreciation rights, resulting in insufficient retail user participation enthusiasm and long-term activity rates below 30%, while institutions lack the motivation to grow with the project.
To address the above pain points, TreehouseFi innovatively constructs a dual-core architecture of 'multi-dimensional asset value fusion + user participation value visualization', through three core mechanisms of 'foundation + scenario + credit' three-tiered value fusion, quantifying participation value at the central platform, and ecological synergy feedback, allowing asset value to continuously upgrade with holding depth and scenario participation. User participation behavior can be accurately converted into actual value, addressing the core needs of target users (long-term institutional allocators and highly engaged retail users), while forming a 'deep value barrier' for the project in the DeFi fixed income field, pushing the project from a 'single yield tool' to an 'ecological value symbiosis'.
I. Multi-dimensional asset value fusion: creating a 'value increment engine' for the project's asset side.
TreehouseFi breaks through the limitations of similar projects' 'linear growth of asset value', innovatively designing a 'three-layer value fusion system', relying on a multi-source Oracle network and on-chain value contracts, enabling asset value to increase in both directions with 'basic return accumulation, scenario contribution deepening, and credit tier enhancement', allowing assets that are 'held longer and participated more' to gain higher comprehensive value, significantly enhancing the attractiveness of long-term allocation.
1. Basic return layer: anchor to dual market benchmarks, ensuring return stability.
Unlike similar projects that only anchor to cryptocurrency market interest rates, TreehouseFi links the basic returns of assets to both 'decentralized interest rate benchmarks (DOR) + traditional fixed income indicators', avoiding the shock of single cryptocurrency market fluctuations while aligning with institutional needs for 'return fairness':
• The base annualized return of stable assets like tUSDC is synchronized with the real-time supply and demand of DOR (currently about 3.0%) and the yield of U.S. 3-month Treasury bonds (currently about 4.5%), taking the average of both and adding a liquidity premium of 0.2%-0.5%, stabilizing the base annualized return in the range of 3.8%-4.2%, which is 0.8-1.0 percentage points higher than the average level of similar projects (3.0%-3.5%).
• tETH/tBTC and other cryptocurrency assets' basic returns are dynamically adjusted based on the supply and demand of the pledge market and cross-chain liquidity data—when the demand for pledging tETH on the Ethereum mainnet exceeds 1 million, the basic annualized return is increased by 0.3%; when the borrowing rate for tETH on the Arbitrum chain exceeds 5.5%, the cross-chain liquidity premium is increased by 0.2%, ensuring that basic returns are synchronized with market dynamics.
2. Scenario contribution layer: the deeper the participation, the better the value.
The frequency and depth of asset participation in the project's core scenarios (pledge, lending, RWA) directly translate into 'scenario contribution value', adding to basic returns:
• Assets participating in cross-chain scenarios more than 3 times a month can earn a 'cross-chain contribution premium' of 0.1%-0.3%, with more participation leading to higher premiums (up to 0.5%);
• If RWA assets participate as 'cross-border collateral' in trade scenarios, each compliance guarantee completed can earn 0.2% 'guarantee contribution returns', which can be directly used to offset the fees for the next RWA investment.
• In terms of technical implementation, the project utilizes 'scenario behavior monitoring contracts' to capture asset participation data in real-time, with contribution values being settled daily and automatically added to asset accounts without requiring manual user action, achieving a 100% redemption rate for scenario contribution values.
For example, an institution holding 1000 tETH participates in cross-chain arbitrage 2 times a month and 1 time in RWA guarantees, achieving a monthly scenario contribution value of 0.4%, adding to 5.2% basic annualized return, bringing the comprehensive annualized return to 5.6%, which is 0.8 percentage points higher than assets that do not participate in scenarios.
3. Credit accumulation layer: the longer you hold, the better the credit.
The 'continuous holding duration + performance record' of assets is converted into 'credit value', directly influencing scenario parameter optimization, forming a positive loop of 'the better the credit, the lower the cost':
• tAssets held for more than 30 days and without defaults (such as early redemptions or cross-chain delays) will be classified as 'basic level', reducing RWA pledge rates by 2%;
• After holding for 90 days with good performance, the credit tier is upgraded to 'high-quality', and the pledge rate decreases by another 3%, while borrowing rates decrease by 0.3%;
• After holding for 180 days with no violations, the credit tier unlocks 'core level', allowing participation in RWA issuance as 'joint collateral assets' without additional pledging, while enjoying new RWA priority subscription rights.
Credit value is automatically generated through 'on-chain credit contracts', with immutable data that can be reused across scenarios—tETH's 'core level' credit is applicable for both RWA pledges and borrowing scenarios to lower interest rates, and can also reduce 15% of margin in derivatives scenarios, increasing the comprehensive value of the asset by 25%-30% compared to 'basic level' credit.
This system enables TreehouseFi assets' 'long-term holding value rate' (additional appreciation of assets held for 1 year / basic returns) to reach 22%, far exceeding the average level of similar projects (6%), with institutional long-term allocation willingness increasing by 70% and asset retention period extending from 3 months to 9 months.
II. User participation value visualization: addressing the 'no feedback' pain point for project users.
TreehouseFi addresses the issue of 'virtualization of user participation value' in similar projects by innovatively developing a 'participation value quantification central platform', converting user participation behaviors such as 'governance, liquidity provision, and risk monitoring' in the ecosystem into 'quantifiable, redeemable, and transferable' actual value, transforming user participation from 'symbolic actions' to 'value acquisition channels', significantly enhancing user stickiness and activity.
1. Accurate quantification of participation behavior.
The central platform converts user participation behavior into standardized 'participation points' through the 'on-chain behavior capture module', avoiding 'amorphous participation levels':
• Participate in ecological governance voting (such as asset rule adjustments and new scene launches), earning 100 participation points for each valid vote (consistent with the majority decision).
• Provide liquidity for core scenarios (such as tUSDC lending and RWA investment), earning 50 participation points for every $1,000 of liquidity held for 7 days;
• Become a risk monitoring node, assisting in identifying anomalies in RWA underlying assets (such as cash flow fluctuations or credit rating downgrades), with effective reports earning 500-1000 participation points for each report (based on risk level).
Participation points are counted in real-time in user accounts, with data verified through Chainlink Oracle, ensuring authenticity and immutability. Users can view detailed participation point records and sources in real-time through the project dashboard.
2. Flexible redemption of participation value.
Users can exchange 'participation points' at the central platform for actual rights covering all scenarios of the project, with redemption methods accurately matching user needs:
• 1000 participation points can be exchanged for 'cross-chain fee reduction vouchers (0.1%)', which automatically take effect when crossing chains for tAssets, directly lowering operational costs;
• 3000 participation points can be exchanged for 'RWA pledge rate reduction vouchers (5%)', investing $100,000 in RWA can reduce $5,000 in pledged asset occupation;
• 5000 participation points can be exchanged for 'new RWA priority subscription rights (limit $20,000)', locking the amount 48 hours before the new RWA launches, ensuring priority access to high returns;
• 10000 participation points can be exchanged for 'Asset Rule Proposal Rights', allowing suggestions for optimizing tAssets redemption rules and RWA review processes, with the project required to provide feedback on the progress within 7 days.
The entire redemption process is automated; once users click to redeem, rights certificates (ERC-1155) are issued to their accounts in real-time, with no manual review required when used, achieving a 100% redemption success rate and addressing the issue of 'cumbersome and time-consuming rights redemption processes' in similar projects.
3. Compliance flow of participation value.
To address the issues of 'idle participation points' for institutional users and 'difficulty in redeeming small participation points' for retail users, the central platform supports the circulation of participation points within compliance:
• Institutional users' participation points can be transferred between multiple accounts under the same institution (requires on-chain identity verification) to avoid excess participation points in a single account;
• Retail users can transfer small participation points (≤500) to the project's 'Participation Points Mutual Aid Pool' to exchange for 'fee reduction vouchers' transferred by other users, increasing the utilization rate of participation points from 45% in similar projects to 90%.
This mechanism enables TreehouseFi retail users to achieve a 'participation point redemption rate' of 95% (compared to an average of 38% for similar projects). The long-term activity rate of retail users increased from 30% to 82%, and the 'participation depth' of institutional users (average monthly participation actions) increased by 4 times since the project's early days, transforming users from 'project users' to 'ecological co-builders'.
III. Ecological synergy feedback: construct a value cycle of 'assets-users-scenes'.
To avoid the issue of 'assets, users, and scenarios being isolated' in similar projects, TreehouseFi relies on 'ecological synergy contracts' to deeply bind multi-dimensional asset value fusion, user participation value visualization, and scenario iteration, forming a positive cycle of 'asset value enhancement → user participation deepening → scenario optimization → asset re-appreciation', significantly improving the overall value retention capacity of the ecosystem.
1. Asset value → user participation: high-value assets attract deep participation.
The multi-dimensional value fusion of assets gives users a stronger incentive to participate in scenarios to obtain higher value:
• A retail user holding tUSDC for 6 months obtained 'high-quality' credit (pledge rate reduced by 5%), and to further unlock 'core-level' credit, actively participated in RWA cross-border guarantee scenarios (averaging 2 times a month), doubling the speed of participation point accumulation, successfully exchanging for 'new RWA priority subscription rights' 3 months later, earning an additional $6,000 in income.
• Data shows that users holding 'high-quality' credit assets or above participate in the ecosystem 2.5 times more frequently than ordinary users, with a participation point accumulation speed 1.8 times faster, forming a positive feedback loop of 'the higher the asset value, the more active the participation'.
2. User participation → scenario optimization: deep participation drives scenario iteration.
The demand and feedback generated by user participation behavior form the core basis for scenario optimization:
• Retail users can propose demands to simplify the 'RWA small investment process' through 'participation point exchange rights', with the project optimizing the 'automatic fragmentation split for RWA' function within 14 days (default split of $50 per share), increasing retail RWA participation from 35% to 62%;
• Institutional users promote the implementation of the 'dynamic adjustment of tETH cross-chain collateral rates' rule through governance voting, reducing the collateral rate by 3% when cross-chain to high liquidity chains, lowering institutional cross-chain operation costs by 15%, and further increasing tETH allocation scale (average increase of 40%).
3. Scenario optimization → Asset appreciation: Iterative scenarios feed back into asset value.
After scenario optimization, the efficiency of asset scenario adaptation and the potential for returns have significantly improved:
• After the launch of the 'RWA Fragmentation Split' function, RWA scenario liquidity increased by 75%, and the 'scenario contribution premium' of RWA assets rose from 0.2% to 0.5%, allowing users holding RWA to earn an additional 0.3 percentage points on top of basic returns.
• After the implementation of the 'dynamic adjustment of cross-chain collateral rates' rule, the cross-chain trading volume of tETH increased by 80%, and the cross-chain liquidity premium rose from 0.3% to 0.6%, leading to an additional 0.3 percentage point increase in tETH's comprehensive annualized return, forming a closed loop of 'scenario optimization → asset appreciation'.
Through this synergy mechanism, TreehouseFi's ecological value retention rate (the proportion of assets and users retained for more than one year) reaches 60%, far exceeding the average level of similar projects (22%), with the quarterly compound growth rate of ecological TVL stable at over 35%.
Project deep value ecological evolution path.
Combining the core trends of 'long-term allocation and equity operation' in the DeFi fixed income field, TreehouseFi's ecological evolution path in the next 12 months is clear, aiming to further strengthen the core advantages of 'asset value increment' and 'user participation value realization':
1. Asset side: enrich value fusion dimensions.
• Introducing a new 'green asset value dimension': introducing green energy RWAs and carbon neutrality themed tAssets, users holding these assets can earn additional 'carbon credit contribution points', redeemable for exclusive rights in green scenarios (such as a 5% reduction in the pledge rate of green energy projects);
• Optimize the credit tier system: introduce 'supreme credit' (holding assets for 365 days with no defaults), unlocking 'joint issuance rights for RWA', allowing the joint issuance of small RWA (limit ≤ $1 million) without full collateralization, further enhancing long-term asset value;
• Objective: Increase the 'long-term holding value rate' of assets to 28%, and the proportion of credit assets (high-quality level and above) from the current 45% to 70%.
2. User side: deepen the implementation of participation value.
• Expand participation scenarios: new 'asset education participation' (such as completing basic courses on RWA or cross-chain operation guides) can earn participation points, lowering the participation threshold for retail users;
• Diversify rights types: introduce 'asset income reinvestment vouchers' (after redemption, can automatically reinvest monthly income, enjoying compound interest), and 'scenario priority experience rights' (priority testing 72 hours before new scene launches), enhancing the attractiveness of rights;
• Objective: Attract over 60 institutions to participate (currently 15), with the long-term retail user base exceeding 150,000 (currently 40,000), maintaining a participation point redemption rate stable at over 96%, and increasing risk monitoring nodes to 1500+.
3. Scenario side: perfecting the value circulation chain.
• Expand 'green asset scenarios': launch green energy RWA pledges and carbon neutrality themed cross-chain arbitrage scenarios, supporting the exchange of carbon credit contribution points for additional income in scenarios;
• Open up 'derivatives scenarios': support RWA revenue certificates and tAssets credit certificates for pledge arbitrage in derivative scenarios, enriching asset appreciation channels;
• Objective: Expand the types of scenarios from the current 4 (pledge, lending, RWA, cross-chain) to 6, grow ecological TVL from the current $600 million to $2.2 billion, enter the top 15 in DeFi fixed income project TVL rankings, and become an industry benchmark for 'deep value ecology'.
TreehouseFi uses a dual-core architecture of 'multi-dimensional asset value fusion + user participation value visualization' not only to address the common pain points of 'single asset value and virtualized user participation' in DeFi fixed income projects but also to build ecological competitiveness centered on 'value increment and rewarded participation'. In the future, as global fixed income assets accelerate digitalization, TreehouseFi is expected to become a key hub connecting traditional fixed income and the crypto ecosystem, promoting the upgrade of the DeFi fixed income industry from 'short-term yield-driven' to 'long-term value symbiosis', providing a reusable practical framework for industry maturation.
